Tag: shared warehouse

5 Types of Warehouses for your Supply Chain

What is a Warehouse?

A warehouse is a planned place used for the handling and storage of goods. The finished goods from the manufacturer or raw materials from suppliers come into the warehouse and then handle and moved according to how they are expected to move through the system. The warehouse is an important place to maintain an efficient flow of materials and goods from the source to the final point where it will be used.

Here are five types of warehouses:

Public Warehouse

The public warehouse is a storage facility that can be leased for any business with short-term distribution needs. Most small businesses or companies cannot afford to own, lease, or staff, their own warehouse. If you own a small business that holds product inventory, a public warehouse is a good option for you. Also, retailers that operate their own private warehouses may occasionally require extra storage space if their facilities do not have this much capacity or if they are making a special, large purchase of products.

Private Warehouse

This type of warehouse is owned and managed by suppliers and resellers to store their own stock of goods. For example, a major retail chain may have several regional warehouses or “fulfillment centers” supplying goods to their stores, or a wholesaler will operate a warehouse at which it receives and distributes products.

Climate-Controlled Warehouse

Climate controlled warehouse are used for storing goods that need special equipment, such as refrigerators for storing frozen products, clean storage space for handling sensitive computer products, and humidity-controlled space for delicate products, including produce or flowers.

Automated Warehouse

With advances in computer and robotics technology many warehouses now have automated operations. The level of automation can differ according to the warehousing requirement, from a small conveyor belt transporting products in a small area all the way up to a fully automated facility where only a few people are needed to handle storage activity for a number of goods incoming and outgoing in the warehouse. Nowadays many warehouses use automated machines and tools to handle nearly all physical distribution activities, such as moving product-filled pallets around buildings that may large in area.

Distribution Center

These types of warehouses store products for a very short interval of time as compared to a warehouse. In distribution center products are received from many suppliers and quickly shipped out to the customers, therefore the flow velocity of goods through the distribution center is more than the flow velocity of goods through a warehouse. Apart from storing products, distribution center offers value-added services like product mixing, order fulfillment, packaging, and cross-docking.

Choose Tenaxx Logistics

If you’re looking for shared warehousing services, look no further than Tenaxx Logistics. We have the space, services, modern equipment, and commitment to customer satisfaction needed to make your transition to the world of warehousing a smooth one. To know more about our warehousing services, contact us today.

KNOW ABOUT 3PL WAREHOUSE COSTS FOR YOUR BUSINESS

If your business is growing and you’re thinking to go for warehousing options, the idea may seem a bit challenging. Warehouses are large facilities that need proper management and maintenance.

If you’re planning to build or rent a full warehouse for your business operation, then warehousing costs is something to give your attention to. If, however, you’re partnering with a third-party logistics company (3PL) to provide you with shared (or “public”) warehousing services, then your costs will only reflect the space and services you need. In this blog, we’ll examine 3PL warehouse costs and provide you with the information your 3PL company will ask you to provide accurate pricing.

Different Types of warehousing

If your operation is looking for a warehousing service, you have three options.

1. Build or rent a warehouse yourself and take full charge of it. This by far your most costly choice. With this option, you pay for the building, the staffing, the equipment, the warehouse management system, and other technologies. If your actual volumes don’t match your forecasts, you can be left paying a lot of money for resources you’re not using – or scrambling to add resources to keep up.

2. Use dedicated warehousing services of a 3PL. With this option, you hire a 3PL company to fully dedicate of its warehouses to your operation. Your 3PL can provide the staff, equipment, and systems required for your business operation – saving you considerable amounts of time and money and acquiring these yourself.

3. Use a shared warehousing service. Shared warehousing is the most common – and cost-effective – a type of warehousing. With this option, you utilize a 3PL warehouse and place your goods alongside several other companies and pay for only space and services you need.

Find your 3PL Warehouse Costs

If you decide to partner with a 3PL for either dedicated or shared warehousing, there are many key points that will affect your costs.
1. The first point you need to address in calculating warehouse costs is the location. As a rule, warehousing in large metropolitan areas is going to be far more expensive than it will be in rural areas.

2. The second point to consider is whether you need dedicated or shared warehousing services. The more costly of the two, dedicated warehousing is typically a good option for larger operations that have very consistent volumes.

Information your 3PL will need from you

You will need to provide your 3PL with detail about your business and goods so that they can determine the services and type of space needed in order to provide you with accurate pricing. The basic information that your 3PL will need from you for storing and handling the warehouse for you are mentioned below.

Storage information needed

• Average pallet dimensions (height, width, weight, depth)?
• Pallet characteristics (e.g., stackable or racking)
• Inventory turns per year
• Amount of shipments per year
• Estimated inventory volume
• Average inventory (in terms of number of pallets)
• Number of cases per pallet
• Product temperature requirements
• Hazardous material information

Handling information needed

• Number of orders processed per year (B2B and B2C)
• Average order size (pallets if B2B, pieces if B2C)
• Pick and pack facilities (for eCommerce fulfillment)
• The average number of inbound orders per day
• The average number of outbound shipments per day
• Percentage of cross-dock shipments
• Transportation requirements
• Intermodal and container details/requirements

Related: Advantages of Using Public Warehouse

Choose Tenaxx Logistics For Cost-Effective 3PL Service

If you’re looking for a 3PL for your warehousing operation, look no further than Tenaxx Logistics. We have the space, services, modern equipment, and commitment to customer satisfaction needed to make your transition to the world of warehousing a smooth one. To know more about our warehousing services, contact us today.