Warehousing services are related to handling and storing of goods. One of the main advantages of using them is the security and care provided for the products.
What are warehousing services?
Warehousing services are those that are responsible for maintaining product storage in secure facilities.
When you enlist one of these services, the overseeing company safeguards them from the elements to avoid any potential damage to the merchandise. These services cater to a wide range of products, from raw materials to finished goods.
As a result, they’ve become a crucial element in the supply chain of goods across numerous industries.
The most important role of companies offering warehousing services is to store the merchandise before it needs to be shipped elsewhere. Depending on the situation, it might go directly to the end customer or to another warehouse closer to the distribution point.
A few years ago, warehousing services were primarily limited to storage in large metal warehouses; but with the advent of new technologies, their services have also evolved.
It’s worth noting that warehousing services do not include transportation of merchandise. Therefore, if necessary, it must be arranged with another company or additional services supplied by the selected provider should be considered.
Common Aspects of Warehousing Services
Many companies rely on warehousing services, so it’s essential to understand their characteristics and benefits:
- Contract Warehousing: Widely used by companies distributing products regionally. Contracts can range from a few weeks to several years.
- Technology: The technology employed in these services is vital for ensuring efficient deliveries. A sophisticated technological infrastructure is necessary for precise operation.
- Inventory Tracking: Warehousing services specialize in inventory management. They can provide valuable insights to optimize this aspect and minimize human errors in merchandise shipments.
- Order Processing: This encompasses processing, packaging, labeling, and shipping of merchandise. Additional services depend on the type of company contracted for these tasks.
- Quality Control: Essential for ensuring services are carried out correctly. Issues can arise during shipments, such as sending excessive merchandise or delivering to an incorrect destination. Hence, packages must be carefully weighed, measured, and meticulously tracked.
- Cross-Docking: These programs help reduce storage and related expenses. They enable customers to consolidate products from different locations into a single central distribution point. This process includes receiving products from various manufacturers, repackaging, and dispatching them to their final destination.
- Import Deconsolidation: Offers a solution for end customers seeking quick deliveries. Distribution centers are assigned in countries apart from the producing country, according to demand and delivery deadlines.
Types of warehousing services
Within these types of activities, key aspects include merchandise storage, packaging, and all logistics necessary to ensure packages reach their destinations. Among the types of warehousing services that exist are:
- Pick and Pack
- Cross Docking
- Raw Material Kitting
- Order Fulfillment
- Vendor Managed Inventory (VMI)
- FTZ (Free Trade Zone)
- Finished Goods
- Merge in Transit
- Reverse Logistics
- E-Commerce Distribution Services
- ARP Administration Returns Program
- Kanban Systems
- Section 321
What are the benefits of using warehousing services?
For some companies, using warehousing services brings more benefits than for others. Among the advantages of these services are security, profitability, distribution convenience, increased efficiency, and accessibility.
- Security: These companies are specifically designed to safeguard merchandise and enhance security for stored packages.
- Profitability: Small businesses, in particular, benefit from this, as they can utilize necessary space for their merchandise without overpaying.
- Convenient distribution: Shipments can easily reach any destination worldwide. There’s no need for multiple transportation companies, which reduces paperwork and costs.
- Flexibility: Merchandise sales vary across different seasons. Hence, companies can rent facilities for specific periods as needed.
- Efficiency: Effective inventory management enhances productivity in storage. Well-organized packages simplify locating items and sending them to their destinations.
- Accessibility: Numerous warehouses worldwide are available. Choose the one that best fits your distribution strategy.
Which companies can use warehousing services at the border?
For small businesses that are beginning to expand, it’s very convenient to use storage services since they lack the necessary infrastructure for storage themselves
Warehouse services are also very useful for companies operating internationally or engaging in nearshoring, but whose factories are located in few places on the planet. This way, they can store merchandise closer to the delivery destination.
Now that you know what warehousing services are, you can use them during peak seasons when demand for merchandise is high or to address issues with delivery times due to distances. Contact us for more information about warehousing solutions for your business.
