What is E-commerce Warehousing?
Warehousing is the business activity of storing goods on behalf of others. It is a service provided by logistics companies to businesses and organizations who find it more efficient or economical to outsource their storage and distribution requirements.
A warehouse is a commercial building for storage of 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. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing and production.
What are The Benefits of E-commerce Warehousing?
There are many benefits of e-commerce warehousing. Perhaps the most obvious is that it can save businesses a great deal of money. By outsourcing their storage and distribution requirements, businesses can avoid the significant capital investment required to build and maintain their own warehouses. In addition, e-commerce warehousing can provide businesses with greater flexibility and scalability. As businesses grow and change, they can easily adjust their storage and distribution needs accordingly, without incurring any significant additional costs.
Another benefit of e-commerce warehousing is that it can help businesses to improve their customer service levels. By entrusting their storage and distribution requirements to a third-party logistics provider, businesses can free up their own staff to focus on other areas of the business, such as customer service. In addition, e-commerce warehousing can help businesses to reduce their lead times and improve their order fulfilment rates.
Finally, e-commerce warehousing can help businesses to reduce their environmental impact. By consolidating their storage and distribution requirements, businesses can reduce their transportation requirements, and therefore their emissions. In addition, many e-commerce warehouses are now incorporating sustainable practices into their operations, such as using LED lighting and investing in renewable energy.
Types of E-commerce Warehouses
There are three main types of e-commerce warehouses:
1. Public warehouses: These are owned and operated by third-party logistics providers. They are open to businesses of all sizes, and can provide a range of services, such as storage, picking and packing, and shipping.
2. Private warehouses: These are owned and operated by a single business. They are usually only used by that business, although some businesses do rent out space in their private warehouses to other businesses.
3. Hybrid warehouses: These are a combination of public and private warehouses. They are usually owned and operated by a third-party logistics provider, but are used by a single business.
The type of e-commerce warehouse that is right for a particular business will depend on a number of factors, including the size of the business, the nature of its products, and its budget.
Summing up
Warehousing is an important part of the e-commerce supply chain. It can save businesses money, improve customer service levels, reduce lead times, and reduce environmental impact. If you are considering using e-commerce warehousing for your business, it is important to choose the right type of warehouse for your needs. Read more about warehousing in our recent blog article. We have lot to share with you!
