Warehousing in Logistics System

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Warehousing in logistics system



The role of warehousing in logistics system

A warehouse is the building for storing goods while warehousing refers to the place or building where goods are stored. Warehousing plays the role of consolidation in the logistics system. Consolidation is the process of reducing the costs of transportation by consolidating the movement (Ross, 2004). Most of the companies supply their client with the same goods through a warehouse. From the warehouse; commodities are sent in a bulk shipment to the consumer. Therefore, rather than transporting the products in small shipment, it is economical having a consolidation …show more content…

Automated warehouses are another type of warehouse. The advances in the robotics and computer technology have enabled most of the warehouses to have automated capabilities. The level of automation of these kinds of warehouses ranges from a little conveyor belt to fully automated facility in which only a few individual are required to handle the store activity of thousands of kilograms of a commodity (Altekar, 2005). Most of the warehouses use the machine in dealing with all the physical distribution activities in a company.

Climate controlled warehouses were those that change with the climate. The warehouses store various types of goods including those that require special handling. The commodities that need special handling include freezers, which tore the frozen products (Altekar, 2005). These types of delicate products need humidity controlled environments. Furthermore, a dirt free facility may be used in handling the products that are highly computer sensitive.

The pros of public warehouse over private warehouse and vice versa

Public warehouses are beneficial as compared to the private warehouses in that there is no capital one should invest in the warehouse. Furthermore, this type of warehouse offers the ability to expand the market. It offers practical and economical ways of reaching the new markets (Altekar, 2005). Furthermore, it is easy to adjust to the seasonality. It enables the user to rent a big space during the

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