What is warehousing?

If you are active in the logistics sector or are involved in the management of goods flows, you will have to deal with the storage of your or other people’s goods, also known as warehousing. In this article, we’ll give you a clear understanding of what exactly warehousing entails and why it plays a crucial role in modern supply chains.

Warehousing refers to the process of storing goods in one’s own warehouses or third-party warehouses, with the goal of managing them safely and efficiently. It is a strategic link in the supply chain that acts as a temporary storage place for products before they are distributed to their final destinations. In these times of increasing uncertainty around supply and demand, we see an increasing need to keep larger stocks of product.

Warehousing & e-commerce

In this rapidly evolving world of e-commerce and global commerce, warehousing has become critical to meeting the growing demand for fast and reliable deliveries. Warehouses act not only as warehouses but also as hubs for consolidating, sorting, packing, and shipping goods.

In the following paragraphs of this article, we will explore the key aspects of warehousing, including the features and benefits of effective warehouse operations, the optimization of warehouse layouts, inventory management, order picking and packaging, warehouse safety, and sustainability practices within warehousing.

This is interesting whether you are an entrepreneur looking to improve your warehousing and distribution processes, a logistics professional looking for in-depth knowledge of warehousing, or simply curious about this exciting topic.

What is warehousing?

Warehousing refers to the process of storing goods in special facilities, known as warehouses, with the objective of managing them safely and efficiently. It includes managing the receipt, storage, and issuance of goods, as well as activities such as inventory management, order picking, packaging, and shipping. Warehousing plays a crucial role in supply chains by providing a temporary storage place for goods before they are distributed to their final destinations. Optimizing warehousing processes is essential to improve the efficiency, speed, and reliability of deliveries. The administrative recording and tracking of quantities and locations of stocks is an indispensable part of this.

What exactly is a warehouse and what makes it so efficient?

A warehouse is a physical facility that is specifically designed for the storage and management of goods. It is a controlled environment in which various operational processes take place, such as receiving, storage, order picking, packaging and shipping of goods.

What makes a warehouse efficient are several aspects:

1. Optimal use of space: An efficient warehouse makes optimal use of the available space. This can be achieved through smart warehouse layouts, such as the use of racking, racking, and stacking systems, to utilize vertical and horizontal space.
2. Logical layout: A well-organized warehouse layout is crucial for efficiency. By creating logical zones for receiving, storage, order picking and shipping, processes can be streamlined and lead time can be shortened.
3. Advanced technology: The use of advanced technologies, such as warehouse management systems (WMS), barcode scanners, RFID (Radio Frequency Identification), and automation, contributes to the efficiency of a warehouse. These technologies help accurately track inventory, reduce errors, and optimize processes. Large-scale experiments are being conducted with robots, self-driving lifting trucks and artificial intelligence.
4. Optimization of inventory management: An efficient warehouse has an effective inventory management system. This includes regularly tracking inventory, identifying optimal inventory levels, reducing excess inventory, and implementing just-in-time (JIT) delivery practices.
5. Order picking strategies: An efficient warehouse uses optimized order picking strategies. This includes grouping orders based on location, using advanced order picking methods such as batch picking or zone picking, and minimizing the walking distances for order pickers. Artificial intelligence and machine learning are being introduced.
6. Quality control: An efficient warehouse pays attention to quality control. This includes inspecting incoming goods, maintaining good storage conditions, and conducting regular checks to ensure that the goods are in good condition.

By applying these efficiency principles, a warehouse can increase productivity, reduce costs, improve customer service, and optimize overall operational performance.

Warehouse vs Distribution Center: What’s the Difference?

Although the terms “warehouse” and “distribution center” are sometimes used interchangeably, there are differences between the main functions of both concepts. Here are the main differences:

Warehouse:

• A warehouse is a facility where goods are stored, managed, and organized. The primary purpose of a warehouse is to provide storage space for goods pending further distribution.
• Warehouses are often focused on efficiently managing inventory and ensuring an organized storage environment. They can contain various goods, such as raw materials, parts, or finished goods.
• The process in a warehouse includes receiving, inspecting, storage, order picking, and packing of goods.

Distribution center:

• A distribution center is a logistics facility that focuses on efficiently and effectively distributing goods to their final destinations. The main purpose of a distribution center is to collect, sort, consolidate, and ship goods to customers, stores, or other distribution points. This is also called cross docking.
• Distribution centers are often strategically located to facilitate optimal distribution. They can act as nodes in a supply chain, where goods are received from different sources, aggregated, and then distributed to specific locations the same or the next day.
• The process in a distribution center involves receiving goods from various sources, processing inbound shipments, order picking, packaging, and shipping of goods to the appropriate destinations.

In a nutshell, a warehouse is focused on storage and management of goods, while a distribution center mainly focuses on picking and quickly distributing goods to specific destinations to meet customer needs. In some cases, facilities may combine both warehouse and distribution functions, depending on the needs of the business.

How does warehousing work with dry bulk logistics?

Warehousing in relation to dry bulk logistics relates to the storage and handling of dry bulk goods. At HUSA Logistics, we do this mainly in the form of sugar, milk powder and potato starch. However, dry bulk logistics is also known for the storage of grain, coal, ores, minerals, chemicals and cement. It includes specific operational processes and infrastructure to store and manage these goods safely and efficiently. Here are some aspects of warehousing related to dry bulk logistics:

1. Storage facilities: Special storage facilities are often used for dry bulk goods, such as silos, storage tanks, bunkers or warehouses. These facilities are designed to store large quantities of dry bulk in an organized and safe manner.
2. Unloading and loading infrastructure: Warehousing for dry bulk logistics often includes specific loading and unloading infrastructure. This can include, for example, conveyors, hoppers, cranes, grabs or pneumatic systems used to move the bulk goods in and out of the storage facilities.
3. Inventory management: Effective inventory management is critical in dry bulk logistics warehousing. This includes keeping track of inventory levels, monitoring the quality and condition of the goods, and planning the replenishment of inventories based on demand and supply chain requirements.
4. Handling: Dry bulk goods may require specific handling, depending on their nature and application. For example: sieving, mixing, packaging, weighing or sampling of the bulk goods may be necessary in the warehousing process.
5. Quality control: Since the quality and condition of dry bulk goods are important, attention is paid to quality control. This may include sampling and analysis to ensure that the goods meet specifications and standards.
6. Safety and environment: Safety measures are of great importance in dry bulk warehousing, due to the potential risks such as fire hazards, dust formation and the release of harmful substances. Adequate safety protocols and environmental protection measures are implemented to minimize risks and comply with regulations.

In dry bulk logistics warehousing, efficiency, accuracy, safety and quality control play an essential role. The aim is to optimise the storage and handling of dry bulk goods so that they can be delivered to customers on time and in good condition.

How does the warehousing process work at HUSA Logistics?

The process starts with the receipt of goods in our well-equipped warehouse. We can unload via docks, container docks or via the overhead doors. Whether it is trucks, railway wagons or ships, we ensure that the goods received are carefully checked for both quantity and quality. Our experienced team accurately registers the received goods in the automated warehouse management system, giving us a clear overview of the stock at all times. In our management system, we record the most important characteristics including product code and description, batch number and expiration date.

We are FSSC22000 and GMP+ certified for storing food and animal feed.

1. Receipt of goods: The process begins with the receipt of goods in our warehouse. We can receive trucks, trains, or ships with different types of cargo, including containers and conventional goods. We check the received goods for quantity and quality, and register them with the desired characteristics in our system.
2. Storage and inventory: After receipt, the goods are stored in the designated storage facilities. We have a spacious warehouse with a total capacity of more than 70,000 m2. Big bags can be stored in dry bulk or as bagged goods. We ensure that the goods are correctly identified, labelled and stored in the correct locations. Through our web portal, our customers have continuous insight into the number and locations of their stocks.
3. Order picking en processing: When an order comes in, we start the order picking process. Our employees go to the storage locations and collect the necessary goods according to the specifications of the order. We ensure that the order picking processes are carried out accurately and efficiently, using advanced technologies such as barcode scanners and our warehouse management system (WMS).
4. Verpakking and labeling: After order picking, the goods are carefully packed according to the customer’s requirements and the nature of the goods. We ensure that the packaging is safe and suitable for transport. The goods are also provided with the correct labelling and documentation, such as shipping labels and freight documents.
5. Shipping and distribution: Once the goods are packed and labeled, they are prepared for shipment. We work with our road transport department and other transport companies to transport the goods to their destination. We ensure precise coordination of transport planning and ensure that the goods arrive at the customer on time and in good condition.
6. Value Added Activitiets: Within our warehouse we also offer Value Added Activities. This includes additional services we provide to the stored goods, such as unloading containers, palletizing goods from these containers, labeling, assembly, custom packaging or quality checks. We add value to the goods according to the specific needs of the customer.

Accuracy, efficiency and safety are of great importance at every step in the process. We follow strict protocols and guidelines to ensure that the goods are handled correctly and that the quality is maintained. Our goal is to offer our customers a logistics service that meets the highest standards.