+1 (912) 216‑0478

What is the Importance of Storage in the Logistics Chain?

What is the Importance of Storage in the Logistics Chain?

One of the main stages is storage that plays an essential part in the distribution process. Storage doesn’t only involve looking after the goods but you should also check out some of the aspects that are involved in a good warehousing service:

Safekeeping: the goods can help make them easy to handle and gain access

Maintenance: It is all about managing the products, their safety and preservation

Inventory: Check out the inventory of the cargo and the available stock

Transportation: Manage the preparation, packaging and shipment to the destination

Storage helps play a vital role in the supply chain given the fact that it helps guarantee good delivery times, reduce warehouse losses and provide better services. They also occupy a position which is not only ahead of competitors but also ultimately increases profits.

When you have a good storage system it is vital for expanding a business. The importance of knowing different kinds of logistic storage which can help choose the one that is suited to the specific needs of each business and its target market.

Storage by Location

The internal storage offers greater protection as it provides the control of climatic variables like lighting, humidity and temperature in order to maintain the integrity of the goods.

There is external storage as well where it is impossible to control environmental factors. It makes it ideal for loads that are not affected by weather. It also offers surveillance of the goods in areas that are installed in places which are closed off with security fences, flexi barriers and railings. 

Storage by Function 

Regional storage It is a kind of storage that has a strategic location that guarantees the product distribution in the shortest possible time. These are the warehouses that are organized to receive large quantities of goods that come from production plants on lorries.

Central storage It is the kind of storage that is located near the production plant. It aims to keep the cost of goods transport to a bare minimum. It stores most of the stock and distributes it to various regional warehouses if these exist. 

Temporary storage These are the spaces that are conditioned for a limited amount of time to meet stock needs in the event of specific demands. 

Free warehouse This is the name given to the storage space for goods that come from imports and exports. The free warehouse offers plenty of tax benefits given that the cargo is not subject to import duties. The goods that are stored here are tax free when entering and leaving the depot.

Storage In transit These are warehouses that are located between the point of sale and the regional warehouse. The transport time should not be more than 24 hours. There are fast moving warehouses that prepare to hold the goods for a short time and have a high turnover. 

Customized Storage It is important to choose the kind of storage which is suited to each company and product. It is a team of workers who know how to get the most out of the facilities and have experience in handling each type of goods. They also offer storage solutions that are tailored to the customer’s needs. 

The first step of the storage process is to count the goods which is done at the first time they are received. However, depending on the situation there are goods that are counted after storage. After counting the goods, they are transported to the warehouse. Since the warehouses are in suitable places that will contribute to the transportation process, the storage process takes place quickly.

After transportation, the goods are then placed in the warehouse in a suitable way. Storage is a bridge that is between the manufacturer and the retailer in the procurement process of the product. It is important to plan according to the characteristics of the goods when storing. Some goods require a specific temperature range during their stay in storage. There are also goods that need to be protected from light. All these details must be followed so that they can be transported undamaged. It is therefore important to check out the qualities of the warehouse. 

You can also check out the types of warehouses which are as follows:

  • Cold storage
  • Open warehouses
  • Closed warehouses
  • Automatic stores
  • Traditional warehouses 

The quality of storage is important for logistics as it consists of two main services that are transportation and storage. Moreover, logistics and service become much more efficient with effective storage processes. 

These are the ways that storage in the logistics chain comes into effect. It not only becomes more efficient but also more effective.

Related Blogs

%d bloggers like this: