ENG

Warehouses in Thailand – What you need to know.

11 August 2021

Whether you are a new business owner looking to expand, or you are long-established and simply need to upgrade, having a warehouse comes with a great number of benefits. As someone who is unfamiliar with warehouses or is perhaps looking at them for the first time, then you’ll need to plan your approach with careful consideration.

 

In this article, we’re going to take you through everything you need to know, from what a warehouse is and how they function, the various types of warehouses available, which businesses can benefit from having one, and much, much more.

 

What is a Warehouse?

So, what is a warehouse? Well, a warehouse is quite simply a building that is used to store goods. It is a large storage facility typically used by importers, exporters, manufacturers, wholesalers, customs, and transport businesses (to name a few). They are large, open plan building that can typically be found in industrial parks on the outskirts of cities and towns.

 

But a warehouse is more than just a place to store your goods. It can also serve as a central distribution hub and the first (or early) step in your supply chain.

 

What is the importance of warehouse?

The importance of a warehouse is gargantuan, particularly to businesses that are intended to expand their operations and experience significant growth in the coming future. Having a warehouse can help you store and shift much larger amounts of stock, reaching a wider audience and driving revenue through the roof.

 

When your business reaches such a size where a warehouse is finally in consideration, it is a very important step in the right direction. It signifies growth and success and can be an incredibly exciting time for any business owner.

 

Of course, as important as it is having a warehouse, the thing of greatest importance is securing the right warehouse…

 

Warehouse classification – Types of Warehouses

Of course, when you are looking into buying or renting a warehouse in Thailand, you need to know the type of warehouse that you are going to need.

 

What’s that? You assumed a warehouse was just a big empty building with lots of shelves for stacking? Well, you weren’t far off! That is essentially what a warehouse is when stripped down to its core, but there are various types and classifications, each designed for a specific function…

 

Types of warehouses classified by physical attributes

Warehouses can be classified in a number of different ways. Let’s break them down for you:

 

Warehouse type classified by Atmospheric Protection:

  • Covered Warehouse: A warehouse that is covered with brick, metal, wood, or canvass panels. A covered warehouse offers complete protection to the goods stored from the outside elements and changes in weather.
  • Open or Outdoor Stores: These are warehouse types that are delimited by fences and markings, which do not have a complete or physical building for storage. These are designed for products that do not deteriorate with atmospheric effects and can be stored outside (such as a new vehicle).

 

Warehouse Type classified by Materials Stored:

  • Finished Goods: These types of warehouses are reserved exclusively for finished products and are designed to keep the turnover as high-as possible, churning out finished goods.
  • Auxiliary Goods (Procurement Logistics Warehouses): These types of warehouses are designed and dedicated to storing materials that are used for the production of certain goods.
  • Manufacturing Logistics Warehouses: These types of warehouse are designed for products that are at the intermediate stage of production (partially completed).
  • Spare Parts: This type of warehouse is used to store spare parts and is designed more as a maintenance supply unit.

 

Warehouse type classified by Function and Distribution Logistics:

  • Central Warehouse: A central warehouse is a type of classification for warehouses that are located as close to the manufacturing centre as possible (in order to reduce costs for handling and transportation, etc.)
  • Regional Warehouse: These types of warehouse should be as close to the centre of consumption as possible. So for example, if you are a wholesaler and distribute merchandise to businesses throughout Bangkok, you’ll need to be as close to said distribution centre as possible.
  • Warehouse Platform: Warehouse platforms are similar to regional warehouses, but on a smaller scale. They are typically focused on minimising stocks and increasing customer satisfaction through cross-docking, tense flow, and shock stocks.
  • Temporary Warehouse: As the name suggests, a temporary warehouse is designed to be used for certain times of the year. For example, during an event or season peak where demand is high and the need to supply with overstock is necessary.

 

Types of warehouses classified by business

  • 3PL (Third-Party Logistics) Warehouse: This is a classification of warehouse that serves logistics companies. Those who are delivering packages on your behalf, will have a warehouse (or several in fact) where products can be stored temporarily in transit.
  • Trading Companies Warehouse: This is where goods that are ready for sale are stored. Any business with a retail or e-Commerce aspect to their business can benefit from this, particularly when product storage in their retail space becomes limited and overflow is an issue.

 

Bear in mind, that pretty much any business can benefit from having a warehouse. Of course, a Law Firm certainly isn’t going to need the storage, nor will a third-party customer services provider. However, any business with retail products, or some form of e-Commerce aspect to their business is going to—at some point or another—need to utilise some warehouse space. Any companies looking to cater to special requirements outside of the types you see above, may consider a fully custom warehouse for rent as a solution.

Related Topics
All

Shared

View more in blog

06.06.2024

Thai's Rating of Energy and Environmental Sustainability for New Construction

AMN-M1.7 Plot G702/20 (Ready-built Factory

21.03.2024

Logistics and Connectivity: The Strategic Advantages of Chonburi’s Industrial Estates

Strategically nestled in the heart of Southeast Asia, Chonburi's industrial estates boast unparalleled logistics and connectivity. They're a magnet for businesses looking to tap into dynamic markets. With state-of-the-art infrastructure, these hubs are transforming the landscape of regional trade.

21.03.2024

Bangkok Warehousing 2024: Adapt to Evolving Market Needs

Bangkok's warehousing market is undergoing a transformation as dynamic as the city itself. In 2024, the landscape is defined by rapid technological advancements and shifting economic currents. Businesses are finding that staying ahead means adapting quickly to these changes.

21.03.2024

Sustainable Practices for Modern Warehouses

In today's eco-conscious market, sustainability isn't just a buzzword—it's a business imperative. Modern warehouses are at the forefront of this shift, adopting practices that reduce environmental impact while boosting efficiency. They're proving that going green can mean more than just saving the planet; it can save on costs, too.

14.02.2023

Everything You Need to Know About Getting a Factory License in Thailand

On October 27th, the Factory Act came into effect, creating adjustments to aid factories in becoming more comfortable and adaptable in the market. According to this new act, a factory is define as a building, place, or vehicle with at least 50 employees or machinery with a total power of 50 horsepower or more. This marks a major change from the 1992 Factory Act, which set the criteria for 5-20 horsepower and/or 7-20 employees.

13.12.2022

How Smart Warehouses are Using IoT Devices

The world is changing, and the internet of things is at the forefront of this change. Businesses of all types are beginning to adopt IoT (Internet of Things) technology in order to improve efficiency and bottom lines.

28.10.2022

5 Factors to consider when choosing a location to rent a Factory

There are several points to take into consideration when choosing a proper location to rent a factory in Thailand. These Factors are important for the supply chain and logistical processes of your business therefore the next time you are renting a factory, do proper research and evaluate the options you have. This will affect all aspects of your business from branding, employee workflow to your customers' satisfaction. However, in order to make an informed decision, this article will run through the main points to get the best out of your factory rental.

28.10.2022

Factory for rent in Chonburi – Pros & Cons

Chonburi is located in the north-eastern part of Thailand. This province, located just about 64km away from Jomtien beach and 60km from Pattaya beach, is known as one of the most popular destinations among tourists for its beautiful beaches, natural beauty, cultural heritage, and friendly locals. It is also a good location for living with a lot of greenery, clean air, and fresh water.

28.10.2022

Warehouse and Warehousing - what is the difference?

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.

28.10.2022

Warehouse for Rent in Chonburi – Pros & Cons

Chonburi is located in the north-eastern part of Thailand. This province, located just about 64km away from Jomtien beach and 60km from Pattaya beach, is known as one of the most popular destinations among tourists for its beautiful beaches, natural beauty, cultural heritage, and friendly locals. It is also a good location for living with a lot of greenery, clean air, and fresh water.

01.08.2022

8 Tips When Looking for Warehouse Space

If you are a business owner looking for a new warehouse space, it is paramount that you know exactly what you need before starting your search. First, you must do plenty of research and put together a solid plan of action. That way, when you do start looking at prospective warehouses, you can save time by instantly recognising which units are unfit to accommodate you, and which units should immediately be added to your shortlist of potentials.

07.07.2022

Built-To-Suit Warehouses are on the Rise, why Purpose built Warehouses and Factories make sense for Businesses

As e-commerce demand continues to grow, built-to-suit warehouses are becoming more and more popular. But what is a built-to-suit warehouse and why are they so valuable for e-commerce retailers and logistics companies alike? In this article, we’ll tell you everything you need to know!

22.06.2022

A Guide to Cold Storage Warehousing

Cold storage and transportation is what makes it possible to send fresh foods and medicine all over the world without the risk of unnecessary storage. If you’ve ever wondered how your favourite ice creams gets delivered to your local shop – that’s how!

12.05.2022

How AI and Automation Are Impacting Warehousing in Thailand

The impact of AI in warehouse automation has been revolutionary as it is leveraged across multiple multiple applications such as robotics, computer vision, and language processing tools to streamline warehouse operations. In this article, we’re going to look at how AI and automation are impacting warehousing in Thailand, and what it means for the future

07.04.2022

Buying or Renting a Factory – Which is best?

There are a number of important factors to consider when you are trying to decide whether buying or renting a factory is the best move for your business. In this article we’re going to explore these factors, ask some important questions, and try to determine which would be the best option for you. Read on to find out more.

08.03.2022

Why Warehouses in Asia are on the rise in 2022

Warehouses are in high-demand all across the world at the moment and in 2022 we’re only going to see that popularity rise even higher. But why is that? What’s with all of the hype and desire for warehouses right now? In essence, businesses (especially retailers) are running out of room to hold all of the items that we are ordering online.

03.02.2022

Advantages of Renting a Factory or a Warehouse

When business owners and entrepreneurs look to expanding their business operations, one of the biggest challenges is finding an appropriate factory or warehouse that can support and encourage future success.

14.10.2021

Good Manufacturing Practice (GMP) – What it is, what it covers and what the benefit are

In this article, we are going to explore GMP (good manufacturing practice), and what benefits it can bring to your business. As with any industry, in order to experience the highest levels of success, one must adopt the best practices in everything that you do, whether it be manufacturing, customer service, or hospitality. By gaining a thorough understanding of these ‘good practices’, you can optimize your business to function at peak performance, increase profits, and bolster your brand reputation. Let’s get stuck in!

14.10.2021

Supply Chain Challenges and how a Warehouse can take your business Forwards

There have always been challenges in the supply chain, and what with the COVID-19 pandemic, many of these issues have been exacerbated. In any case, as business owners are faced with new challenges it encourages innovation—which leads to some surprising ways to overcome said challenges. One thing that can really help drive your business forward and combat a number of supply chain issues is by investing in the appropriate warehousing. But, before we get into that, let’s look at some of the biggest problems faced and what might be done to combat them.

01.09.2021

Factory Rentals in Thailand - All you need to know

Are you looking for factory rentals in Thailand? If so, then you may be feeling a little overwhelmed at the task; trying to find the ideal premises in a strategic location, and for the right price. But don't panic! It's not as difficult as you might think, particularly when you do your research.

11.08.2021

Warehouses in Thailand – What you need to know.

Whether you are a new business owner looking to expand, or you are long-established and simply need to upgrade, having a warehouse comes with a great number of benefits. As someone who is unfamiliar with warehouses or is perhaps looking at them for the first time, then you’ll need to plan your approach with careful consideration.

02.08.2021

Warehouse Security and our approach to Dangerous Goods Warehousing

A large explosion and fire destroyed the Ming Dih Chemical factory compound that had been producing plastic foam and pellets in Tambon, Rachatewa, causing extensive damage to the surrounding communities, earlier this month in July 2021.