Warehouse

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What is a warehouse?

A warehouse is a space for storing goods and materials, which is used by retailers, wholesalers, manufacturers, or transport businesses. In the past, traditional businesses had to pay for fixed operating costs. Nowadays, they often opt for on-demand warehousing when they only pay for what they need, instead of following a long-term lease agreement. Warehousing has become more flexible and cost-effective for every business size.

Types of warehouse

  • Retail warehouse: This is the most common type, which is used by retailers to store their products, such as fashion items, toys, medicines, etc. When certain products in the store are out of stock, this is where retailers get the products from and restock those items.
  • Cool warehouse and cold storage: This type is used to store agricultural products. Cold storage helps to maintain edible products and prevent them from being damaged by insects or bacteria.
  • Overseas warehouse: As being told by its name, overseas warehouses support overseas trade, such as for cross-national wholesalers. They need storage to keep the commodities before being transported to the target local places.
  • Packing warehouse: It is specifically used for the process of picking-checking-labeling-packing of goods that are waiting to be shipped. 
  • Railway warehouse: This type is often near train stations, where cargo or transported goods are stored and delivered to the next destinations.
  • Canal warehouse: This is probably the original type of warehouse, which supported goods and materials between canals.

Why is a warehouse important in a business?

Its main role is to store surplus goods that the stores don’t need immediately, but should be under control whenever items need to be restocked. A warehouse thus acts as a centralized location for your goods, making it easier for distribution and delivery. This can have a direct impact on customers who don’t have to wait for their products to arrive on time. 

About the Author

Jacey V.

Jacey V.

Jacey V. is a content marketing intern at ConnectPOS - a leading point of sale provider. Being curious about the growth of ecommerce in recent years, she has closely followed the latest technological developments and how they have facilitated businesses to grow.

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