What are the 5 functions of warehouse?

The need for storage arises both for raw materials and finished products. Storage involves proper arrangement for preserving goods from the time they are purchased or produced till actual use. Here comes the role of dedicated warehousing services to play.

The storage done on a large scale and in a particular manner is called warehousing. Warehousing services hold and preserve the goods in huge quantities and in systematic manner from time of their purchase or production till the goods are actually used or sold.

Warehouse provides protection of goods against heat, storm, wind, moisture and more. The specialized warehousescut down the losses due to spoilage, wastage and more. However, warehousing services nowadays perform a variety of other functions. The main functions of warehouse are-

Warehousing and Distribution services in Canada
  1. Storage of goods: This is the basic function of the warehouse. A dedicated warehouse stores large stock of goods. The goods are stored under supervision of experts who protect them from damage, theft and other issues. The storage may be of two types-
  1. Planned storage: This refers to the estimated storage required to meet the regular customer demand.
    1. Extended storage: At times added storage arrangement above planned ones is imperative and various factors can cause it –
      1. Demand seasonality: Demand for the confectionery items rises drastically during holiday season, requiring storage space for that specific period.
      1. Promotional campaigns: Promotional campaigns like sales promotion can escalate sales to new heights and thus extra stock need to be kept to satisfy the expected higher demand for the product.
      1. Speculative purchase: At times goods are purchased in bulk due to lower price or higher price expectations in future and this needs more storage space in the warehouse.

The storage function of the warehouse streamlines the routine operations.

2. Protection of goods: A warehouse offers protection of goods from loss, theft, damage due to harsh weather conditions like heat, dust, wind and moisture etc. Warehousing services make special arrangements to safeguard different products as per their nature.

3. Movement of goods: It consists of –

  1. Inbound movement: Unloading of the goods received in the warehouse
    1. Transfer to storage: Transferring of goods from inbound area to storage area
    1. Order selecting: Choosing the item in the storage as per the order to be shipped and moved it in the shipment area.
    1. Outbound movement: Inspecting and loading the goods for shipment.

Dedicated warehouses have software systems that ensure seamless movement of the goods.

4. Value-added services: Value-added services help optimize supply chain management, generate high value and deliver products effectively to the customers. They include processing, kitting and product customization, grading and branding, re-packing, customization, stamping, labeling, barcode printing, order fulfillment, invoice printing, quality checking and goods disposal.

5. Information management: Warehouses keep the track of information about the goods and materials sent into the warehouse, stored and shipped out. Also, any added information is also recorded. The warehouse use cutting-edge software system to get accurate insights to ascertain availability of stock, its replenishment and processing needs. It maintains timely, precise and accurate data that help in making informed decisions.

Warehousing plays a significant role in the success of business. Professional warehousing services use the state-of-the-art method to ensure these functions take place efficiently.

Also Read

3PL Warehousing and Distribution Services: Everything You Need to Know

Comprehensive 3PL Warehousing Services for Efficient Logistic Solutions

Outsourcing logistic operations to the dedicated 3PL warehousing services provides many great benefits for the businesses.

What is 3PL logistic service provider?

3PL logistics service providers are the ones that offer outsourced logistics services including distribution, storage, transport and fulfillment services to their customers. They offer efficient logistics solutions for the businesses that include-

  1. Transportation: The main service that professional 3PL warehousing services offer is the transportation via trucking. The service providers have their own fleets that may include flatbed trucks, specialized vehicles like cold storage trucks and system designed for route optimization and fleet utilization.
  2. Warehousing: 3PL companies own warehouses at specific distribution points, with specialized staff in the warehouse operations. They also provide clients with automation for efficient moving of products within the warehouse. The companies may provide warehousing for multiple businesses in a single space or provide a dedicated warehousing for a single company to use entire warehouse.
  3. Freight forwarding services: The 3PL service providers connect with the logistics service providers managing the operations between them for the clients. The companies specialize in storing, shipping merchandize on behalf of the shippers. This service is useful for international shipping and logistics.
  4. Financial based logistics: Some 3PL service providers offer financial based logistics providing freight payment and audit services like accounting, tools and controls for managing and monitoring inventory. They also offer many financial solutions for logistics like freight loading and unloading.
  5. Reverse logistics: It allows the customers to return the products and goods. Reverse logistics allows customers to send the item back and deals with refunds, sending products onward and the management or disposing unwanted inventory.
  6. Environment controlled freight: Some goods needs to be transported in specialized environment. 3PL service providers provide specialist vehicles that are equipped with ways to control the temperature, light levels, humidity and other aspects to preserve the goods as they reach their final destination.

Many 3PL service providers offer one of these services but the professional ones will offer several or even all these packages. It is up to the client to determine which services and companies are best suited for their shipping, warehousing and logistics operations.

While outsourcing the logistic work to 3PL service provider it is important to ascertain which company offers the best solution in sync with the business needs at cost-effective rates. The experienced 3PL service providers create a robust network for logistics tendering, tracking, settlement initiation and more. It is advisable to choose a correct 3PL service provider that offers the right suite of services to meet the needs of the business so that you can rest assured that the logistics operations are in the safe hands and you can focus on business growth and expansion.

Custom kit assembly: Tailoring solutions to your unique business needs

Custom kit assembly services are the ones offered by the third-party companies that involve taking the individual pieces of the product and packing them into a single grouping. The professional kitting and assembly service providers identify and package the parts of the products based on the requirements of their clients.

What are the benefits of Custom kit Assembly?

  1. Minimized shipping errors: When the items are shipped as a kit with a single stock keeping unit, the chance of error in the product identification and shipping process is minimized. There is no need to weight or label each piece individually as all the pieces are blended in one kit. This allows elimination of many steps and pre-printing of shipping labels. With few steps, there are few errors.
  2. Efficient use of warehouse space:  Bundling similar items together frees up space in the warehouse and helps to optimize the space.
  3. Quality: Outsourcing kitting and assembly services allows for larger volumes to be produced all while handling multiple tasks to meet the production goals. The service provider will ensure the items are assembled in the correct manner before they ship them out.
  4. Cost savings: The custom kit assembly minimizes the inventory costs and better inventory tracking by keeping down all the expenses like inventory holding costs that includes storage space, labor and insurance and provides the ability to track and maintain stock levels more effectively.
kitting and assembly solutions

Types of Custom Kit assembly

  1. Subscription boxes- These have become increasingly popular in recent times. Here the box can contain items from more than one vendor or there might be a single vendor offering the given subscription. It is the best strategy to convert one time buyers into loyal monthly subscribers.
  2. Assembled products – They are built-to order product kits that can be assembled in few different configurations to give customers more options and make sure they receive everything they need when they place an order.
  3. Made-to-order kits – Custom made sets are packed based on factors like quantity, color, type of item are becoming popular for online sales. This helps boost the sales as they make it more convenient for them to buy more.

Choosing a custom kit assembly provider

It is important to choose reliable kit assembly service provider. The professional service provider is responsible for assembling parts or components into finished kits that meet the needs of the customers. It is important to collaborate with a service provider that is reliable, knowledgeable and experienced.

  1. Cost and quality: When choosing a kit packaging company, it is important to consider the cost. One need to make sure that one gets quality service at the affordable price. Consider the service provider has experience in assembling kits and have quality control processes in place to make sure accuracy and efficiency. Also, ensure they use the best quality materials that meet the industry standards.
  2. Turn-around time: Another factor to consider when looking for kit packaging solutions is the turnaround time. Based on the needs one may require quick turnaround time so the end users receive their orders on time. First ask the service provider about the turn- around time and ask for any warranty on their workmanship and materials used in the kits they assembly.
  3. Customer service: A professional custom kit assembly service provider offers best customer service. They answer and concerns promptly and ensure that the orders are processed quickly and accurately.

When looking for a good custom kit assembly service provider, consider things like cost, quality of workmanship, experience and customer support service before making the final decision so that you can rest assured of quality results within your budget requirements.

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