What Is Warehousing?

Simply put, warehousing is the storage and distribution of inventory by a third party logistics service. The dawn of ecommerce, catalog sales, and infomercials has created a need for warehouse storage solutions, which includes fulfillment management. For many companies, the option of storing inventory is not logistically or economically feasible.  According to the International Warehouse Logistics Association (IWLA), "outsourcing reduces the need for costly real estate to hold inventory," ultimately saving money in capital investments.

What are some of the benefits of Warehousing Services?

Warehousing has gone way beyond storage of goods.  A good warehouse service supports a company's business operations and helps expand services while providing quick efficient distribution of products. As a link between manufacturers and consumers, warehousing offers the benefit of providing a clean, dry storage space along with an automated process that allows a company to track the shipping and receiving via a computerized inventory management system. The best part: the logistical nightmares are handled by the distribution center.

Not only are the troubles outsourced, but much of the cost is offset by the savings in personnel and technological expenditures, which often allows a small- to mid-sized or company to expand without additional undue expenditure.

What are the different kinds of services offered by Warehousing Companies?

Fortunately, the use of a warehouse distribution center is not a one-size-fits-all solution. Many warehousing services offer a wide variety of service options customized for your business needs. Good companies also provide consulting services to help their clients determine which services best fit their business goals. For example, warehouse and distribution services usually offer the following:

• Open ended short-term and long-term inventory storage
• Just-in-Time delivery systems
• Assembly of retail displays
• Picking and packing
• Error-free order fulfillment
• Mobile computing
• Cross docking
• Retail compliance

How do I select a suitable Warehouse and Distribution Service?

Following are some of the things you need to consider before picking a warehousing service for your company.

• Is the warehouse bonded?
• Can the inventory control system be customized to meet the company's needs?
• Is their warehousing software compatible with you in-house inventory management software?
• Is the warehouse dry, clean, and climate controlled?
• What types of inventory reports are available?
• Are the reports in real time?
• Is the company charged for actual space used?
• How is the product maintained?
• Does the warehouse service have an importers license?
• Does the warehousing service include transportation of your goods?
• How is the item stored in transit?
• Do they have a uniform warehouse practice?

You can click here to compare warehousing prices before selecting the right vendor for your business.

What Does the Order Management System Include?

Just as important as the storage and distribution is inventory tracking. There is nothing worse than loss of revenue because of poor inventory management. Some key things to consider when assessing a company's order management system include:

• Do they have a bar code system?
• How are inbound and outbound shipments tracked?
• What is the method of cycle counting by item, location, warehouse, and zone?
• Is there an audit trail?
• Do they offer advanced shipment notification?
• What type of product handling experience do they have?

In the end, your product requirements determine your warehousing and distribution needs. However, not all warehousing vendors are created equal. When looking for a provider, make sure you do your homework and careful assess how each potential candidate fits your particular business model.