Warehouse and Warehousing - what is the difference?

28 October 2022

Warehouses are associated with storing goods. Many businesses use these facilities to store their products, such as raw materials, packing materials, components, or unfinished goods until they are ready to be shipped to the distributor or manufacturer where it turns into finished goods.

 

There are various types of warehouses businesses use based on ownership or commodities stored. For instance, if you are a private enterprise, then you can choose to rent a private warehouse as opposed to a public warehouse that is regulated by the government. Depending on the nature of your business, you can also rent different kinds of warehouses. If you are in a particular institution sector such as construction or railway, then you might have an institutional warehouse for your day-to-day business operations. Other storage spaces such as distribution center warehouses can also be used if you need to store your goods temporarily before they get shipped to the end consumer.

 

When you are storing commodities, you also have different options for warehouses and storage facilities. Let's take dry food grains for an example-these are usually stored in general warehouses where there are measures against rodents and such from infecting the produce. Whereas, if you are storing perishable goods that need to be refrigerated then you are better off storing them in cold storage warehouses. There are also those climate-controlled warehouses in case you might be growing your vegetables that need to be regulated upon humidity temperatures.

 

If your business is massive and needs a huge turnover of goods like Coca-Cola or Walmart then you could choose to rent an automated warehouse. In today's ever-advanced world, there is a growing trend for automation and using robotics in logistics to streamline businesses more efficiently.

 

Thailand 4.0 has come up with various innovative technologies that have gained popularity over the years due to big data and the growth of e-commerce platforms.

 

Nevertheless, as you can see, there are plenty of options to choose from when it comes to warehouses. Although, as a tip, you should locate your warehouse close to your target market for fast shipping, as this will increase sales growth and decrease the gap between demand and supply.

 

What is Warehousing?

On the other hand, the key difference between a warehouse and warehousing is that warehousing refers to the process of storing goods and inventory. This can be anything from maintenance, to product handling, and they can take place at different locations such as manufacturing facilities, office spaces, and others.

 

Why is Warehousing Important?

Warehousing is not just the process of storing goods in any regular manner, but in one that's efficient. A cost-controlled warehousing method is thus pivotal for your business to raise profits without having to incur too many expenses.

 

Moreover, when you have the optimal processes, then you can soon reach your business goals whether that's storing inventory long-term, protecting high-value products, or keeping temperature-controlled goods safe with the proper materials and equipment. This is particularly important when your goods are perishable items that need to be kept in cold storage or ones that need to be produced seasonally and are regularly consumed.

 

The overall process of what warehousing entails normally follows in this direction:

  1. Receiving Inventory -The act of receiving the goods that need to be shelved and stored carefully.
  2. Storing Inventory -Categorizing the goods into different areas of the warehouse facility.
  3. Picking and Packing -This should meet order processing procedures to satisfy the end consumer. This is where Order Fulfillment plays an important role as you are picking up the items at the right time. To successfully do this, you can use different tools such as an order picking tracker to count the products as perpetual inventory.
  4. Shipping -Once the items are packed, they can be moved to the final destination. You can use your own transportation or hire a third party to ship it for you. By outsourcing third parties, you can streamline your business even more.

 

The Benefits of Warehousing for your Business

There are several benefits of warehousing such as optimizing space, minimizing costs, storing goods in controlled environments, reducing inventory carrying costs, and improving inventory accuracy. It also handles large demand and sales if one's business needs more storage capacity by using multiple warehouses with stock transferring between them.

 

With the improved workflow and task delegation, you are also ensuring price stabilization by equalizing the supply of goods to demand. As a result, customers are satisfied as they are getting the commodities regularly on time.

 

Other than inventory control and reducing costs by keeping orders in a centralized location, there are other additional advantages for your business. Using warehousing to manage orders over a specific period of time improves the workflow and reduces any inconsistencies by allowing fast turnarounds and reducing lag time. You want to make sure that you are maximising operational efficiency by allowing room for proper inventory storage by accurately labeling bins and containers to the right names, as well as hiring skilled workers to do their job efficiently.

 

Drawbacks

Though there are great benefits to warehousing solutions for your business, you also have to be careful about certain security risks, thefts/impropriety, and any natural disasters in the industrial zone your warehouse is built. At Frasers Property Industrial, we ensure that all our warehouses are strategically placed in advantageous locations.

 

How Warehouse and Warehousing go Hand-in-Hand

As you can see you cannot have a warehouse without using the right warehousing strategies to optimize your business operations. We have plenty of warehouses for rent depending on your preferences in terms of specifications or facilities. You can even ask for a built-to-suit warehouse so we can tailor one specifically to your needs.

 

Warehousing is just a part of the logistical processes for your business. By storing goods in a well-controlled manner, and using the right materials or equipment, you are managing inventory and coordinating the flow of materials between the source and destination precisely. You can also track and monitor any delays from packing to shipment with a WMS (Warehouse Management Software).

 

Frasers Property Industrial will cover all the details in terms of how you can expand your business by arranging a strategic warehouse location available throughout Thailand and Asia. If you have more questions regarding our services, please feel free to contact us.

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