Understanding Different Types Of Warehouses

by Ankita Sehgal Freelance Blogger, Lives in New Delhi

Soon, we all will be entering the much awaited festival season in India and many of us have already started doing shopping for this. While some of us have the privilege of being near to our family and friends, some of us are also far away from them.

Festive season is also a very crucial time for supply chain managers and warehouses owners as many of us have to have to send gifts to our near and dear ones. Warehousing plays a crucial role in achieving efficiency in supply chain management. Supply chain, which is a chain of activities undertaken by companies to deliver the product to the end consumers from its point of origin, depends on how seamlessly work is being carried out in warehouses.

Maintaining efficiency in supply chains is a challenging task. Since there are so many elements that can interrupt the flow such as unpredictable demand and constantly changing consumption patterns especially for FMCG products, the need for an efficient warehousing is paramount.

There are typically 5 types of warehouses:

Private warehouses

These warehouses are owned and operated by private entities such as the resellers and channel suppliers. Such warehouses are owned for the supply chain of one organization, for example a large wholesaler using a warehouse to adjust for the seasonal demands. No other entities are allowed to use the private warehouses.

Public warehouses

From time to time, all retailers or other supply chain members face a shortage of problem which they try to solve by leasing extra space at public warehouses. Public warehouses are build to rent it to the parties who need extra space for a short duration. Warehouse space Pune is built keeping in mind the distinctive requirements of the player who are likely to lease the space.

Automated warehouses

The automated warehouses, as the name suggests, are built in way a way so that most of the operations and management can be performed with the help of machines. Some equipments that are used by warehouses for automation purposes include the usage of centrally controlled machines, conveyer belts, drones etc. The objective of the automation is to reduce the element of human error and to bring the fixed and variable costs down.

Climate controlled warehouses

Perishable items such as fruit juices and other packed food items are prone to be spoiled by a change in climate. The climate controlled warehouses are built to take care of these special care products.

Distribution centre

Products once produced are stored in warehouses and from there they go to distribution centres where the bulk is broken down and sent to the stores that execute the final step in supply chain, that is, delivery to end consumers. The products are stored fro only a short duration at these distribution centres so it is not optimised for worse climate conditions or automation since the primary objective is bulk breaking.

Warehouses provide utilities that allow the companies to streamline their supply chain operations. These utilities are:

Time: The demand for Diwali lights is higher on the festival not a month later and since the consumer wants to buy the product at the time the need for the product arises, the manufacturer has to be proactive and produce the goods beforehand. This is where efficient warehousing steps in. The manufactured products will enter the warehouse until the demand is created. In its absence the manufacturer would have to produce it on short notice and lose a big chunk of profit.
Place: The products are manufactured at large plants situated miles away from the residential areas. Warehouses bridge the gap between the manufacturing location and the point of consumption. So consumers don't have to take a trip to the plant for a pack of gum,
Possession: This on seems a bit mundane but in fact is the most fundamental benefit. The possession utility is when consumer gets the desired product in his hand just walking into a nearby store.