What is a warehouse? Our definition (2024)

A warehouse is a facility that, along with storage racks,handling equipmentandpersonnel and management resources, allows us to control the differences between the incoming flow of goods (received from suppliers, production centers, etc.) and the outgoing flow of goods (goods being sent to production, sales, etc.). Usually, these flows are not coordinated, and this is one of the reasons why it is important to have storage facilities.

What is a warehouse? Our definition (1)

Logistics warehouse for refrigerated and frozen food products

Types ofwarehouses

At times, the business activity of a company requires one or moretypesof storage facilities: one for raw materials, one for semi-finished products, one for finished products, etc. All of these have to be arranged on the basis of their specific operationalneeds, and in accordance with the restrictions and potential ofeach location and its surroundings.

The best way to classify the different types of warehousescurrently availableis to group them according to their common features:

  • According to the nature of the productthere arewarehouses specializing in coils, flammable products, profiles, small materials, spare partsand perishables and even warehouses that are for general use, among others.
  • The building itself can also be a criterion for its classification. Buildings can be classified as open air warehouses, industrial buildings, basem*nts, depots, cold storage chambers, rack-supportedwarehouses (the racksformpart of the building's constructive system), etc.
  • According to the flow of materials,installations can be grouped intothose used for raw materials, components or semi-finished products, finished products, intermediate warehouses, for warehousing, for distribution, etc.
  • In terms of location, warehouses can be central, regional, or for transit.
  • According to the extent of theirmechanization, they can be manual, conventional, or automated.

What happens in a warehouse?

The main tasks performed in a warehouse are:

  1. Receipt of goods
  2. Verification of those goods
  3. In-housetransport (between different parts of the warehouse)
  4. Storage and safe-keeping of items
  5. Preparation of orders andthe consolidation of loads
  6. Dispatch of goods
  7. Generalmanagement and processing of information relatedto the stock, workflows, demand, etc.

What elements are involved in awarehouse?

A number of factors must be taken into account when planning a facility. The most important of these are the products to be stored, the flow of materials or goods, the space available to house them, the storageequipment –such as racks and handling equipment–, the human factor (personnel), and the company’s management system and policies.

Based on the above, a series of information must be collected. This information, which is stipulated below, will in turn influence the various aspects of the facility and must be taken into account during itsdevelopment.

What are the different parts of a warehouse?

The simplest warehouses normally have access doors, an openarea for maneuveringand verification, a storage area where the goods are located, amanagentoffice for controlling operations, and toilets and changing rooms for personnel.

What is a warehouse? Our definition (2)

Warehouse with a very simple configuration: storage area, management area, changing rooms and bathrooms for personnel.

Starting with the simplestconfiguration, other areas can be added. This includesareas for reception, packaging and consolidation, dispatch, recharging forklift batteries, as well as loading docks.For example:

What is a warehouse? Our definition (3)

Warehouse with areas added for receptions, packaging, consolidation and dispatches.

What is a warehouse? Our definition (4)

Loading dock distribution at a warehouse facility.

In turn, awarehouse can be divided into sectors according to the product being handled or the workoperations. The following diagram illustrates an example of this type of organization:

1. Office and customer services.

2. Loading and unloading docks.

3. Reception and verification.

4. Dispatch.

5. Warehouse for high turnover or over-sized product.

6. High turnover picking offpallets.

7. Warehouse for odd-shaped products.

8. Warehouse for mediumturnover components.

9. Warehouse for high turnover components.

10. Warehouse for low turnover components.

11. Warehouse for high-value products.

12. Packaging and consolidation.

What is a warehouse? Our definition (5)

A map of how different warehouse operations canbe organized.

What is a warehouse? Our definition (6)

A central warehouse that produces and distributesfrozen dough products for the foodsector.

The space assigned to each area must be suitable, given the size of the land or building, the desired capacity, the operations that need to be performed, the required personnel and resources, the flow of materials, and the growth potential.

In any event, the customization of the project and the design of areas within the installationwill be determined byan in-depthstudy of the company’s needs –through the previously mentionedquestions–and the supplier’s experience in implementing logistics and storage solutions.

The entire building –its shape, contents, and access points– must be in keeping with the specific needs of the customer. Opportunities for growth must also be taken into account. Building a warehouse that onlymeetscurrent requirements and leavesno room for expansionwould be a mistake, unless it is a temporary installationor one that will not experience growth.

  • Warehouse management

    Good warehouse management means the location and flow of the goods is streamlined. The target is to achieve the highest possible throughput.

  • The central warehouse

    A central warehouse issues the products it houses for general use, almost exclusively, to supply other local or regional warehouses.

  • Warehouse tasks and functions

    A warehouse should fulfill different functions, such as product reception, its storage, management operations and inventory, or order prep.

  • How to calculate the ROI of a warehouse

    Calculating the ROI consists of deducing the approximate time it will take to get back the initial investment made in a storage installation.

  • What is a Warehouse Management System (WMS)?

    A warehouse management system (WMS) is essential for optimal warehouse management. Among its most important functions are the control of entries and stock.

  • The perfect warehouse location

    Studying where to locate a warehouse should include an analysis of four basic factors: production, demand, costs and competitors.

  • Safety in the warehouse (tips and topics)

    Here, it analyzes key aspects like fire risks, their prevention, reducing their impact and the safe distribution of the loads in warehouses.

  • What is a palletized unit load?

    A unit load is the basic storage and transport unit placed on or in a modular support (box, pallet, container, etc.), to streamline load handling.

  • Barcode run warehouses and other automatic identification systems

    Barcodes or RFID coding permits the identification of all items managed in warehouse fulfillment processes via laser barcode readers and radio scanners.

  • The RFID run warehouse

    Radiofrequency identification (RFID) systems are the most efficient method to communicate orders assigned by the management system to operators, and to also receive the information sent by them.

What is a warehouse? Our definition (2024)

FAQs

What is a warehouse definition? ›

A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns, or villages.

What is warehouse in one sentence? ›

A warehouse is a large building where goods are stored before they are sold. The cargo is loaded onto a truck headed for the company warehouse. Goods were continuously delivered to the company's warehouses, from where they were selected, re-packed, and dispatched to retail stores.

What is a warehouse quizlet? ›

warehouse. A facility used to store purchases, work-in-process (WIP), and finished goods inventory. warehousing. Function that allows a company to receive, store, breakdown, repackage, and distribute items to a manufacturing location, or finished products to a customer.

What makes a warehouse a warehouse? ›

In its simplest definition, a warehouse is a large building where goods and materials are temporarily stored before being sold or exported. A large variety of companies and businesses might need access to warehouses, especially larger companies that have grown enough to need more accommodating space for their products.

What is warehouse meaning definition types and importance? ›

Warehouse is a big commercial storage space or building where a company keeps a lot of things in an organized manner to optimize the supply chain. These things could be products, materials, equipment, or anything else they need for their business.

What is the role of a warehouse? ›

Warehouses offer a range of value-added services, including packaging, labeling, and customization of products. Packaging plays a crucial role in protecting goods during transportation, and warehouses ensure that goods are properly packed to prevent damage.

What is the basic information of warehouse? ›

A warehouse is a facility that, along with storage racks, handling equipment and personnel and management resources, allows us to control the differences between the incoming flow of goods (received from suppliers, production centers, etc.) and the outgoing flow of goods (goods being sent to production, sales, etc.).

What's the difference between warehouse and warehouse? ›

Difference Between Warehouse and Warehousing

A warehouse can be any physical building that is designed to keep items secure. Warehousing is the process of using and optimizing an inventory warehouse, which includes product maintenance, and handling, and other warehouse services.

What is warehouse example? ›

What is warehouse example? Warehouse examples include retail stores, distribution centers, cold storage facilities, and manufacturing plants. In retail stores, items are stored and organized in a warehouse and shipped to customers or other stores.

What is working in a warehouse called? ›

Common titles include shipping associates, warehouse worker and receivers. The following is a list of common warehouse job titles: Receiver. Machine operator. Material handler.

What are the three main processes of a warehouse? ›

The six fundamental warehouse processes comprise receiving, putaway, storage, picking, packing, and shipping. Optimizing these six processes will streamline your warehouse operation, reduce cost & errors, and achieve a higher perfect order rate.

What are the 4 basic functions in a warehouse? ›

Below is a list of the 10 major uses for a warehouse and what each function involves:
  • Storage. The most obvious use for a warehouse is to provide space for storing goods, including inventory, equipment and other items. ...
  • Movement of goods. ...
  • Safeguarding goods. ...
  • Quality inspections. ...
  • Stock counts.
Nov 22, 2022

What are the three types of warehouses? ›

Types of Warehouses
  • Private Warehouses. Private warehouses are owned and managed by suppliers and resellers to fulfil their distribution activities. ...
  • Public Warehouses. ...
  • Bonded Storage. ...
  • Co-operative Warehouses. ...
  • Distribution Centres.

What is the difference between a factory and a warehouse? ›

Before you decide which workplace is best for you, here are the differences between warehouse and factory work. The real difference between warehouse and factory jobs, is that factory workers work in producing goods and warehouse workers move, organize and ship finished products.

What is the difference between a store and a warehouse? ›

A Warehouse is something that deals with finished goods. These are distribution channels located in various cities to help improve the delivery of goods and products to end users. A Store is a space inside the company that has storage of both raw materials that are needed to be processed and the finished goods as well.

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