The warehousing and storage industry in the United States is enormous nowadays. Need proof? It employs almost 1.5 million employees nowadays!
However, only a very small percentage of aspiring business owners actually know anything about it. Are you in the same boat and want to remedy the situation? You’re in the right place.
Today we’re going through a complete rundown of the warehousing and fulfillment industry. Keep reading to learn all about it.
What Is It?
The definition of warehousing isn’t as simple as you might think. It has two parts:
First, the term refers to the actual real-life facility in which a business stores its inventory. Second, it refers to the protocols that a business has in place to ensure its workforce stores, processes, and tracks the inventory properly.
For owners, considering which warehouse to use is crucial to success. The facility, like the Warehousing & Logistics solutions in Kansas City, must be capable of satisfying both the operation’s current and future needs (as the business grows).
What Are the Options?
Complicating any owner’s decision is the fact that not all warehouses are made equal! Here are a few of the main ones:
These private distribution centers are commonly owned and run by your manufacturer, trader, or whoever else is in charge of your reselling process. Common examples include warehouses rented by retailers, leased by a wholesaler, or positioned on/near a farmer’s land.
By comparison, public warehouses are owned by the government. If you’re a small trader who lacks the big budgets of larger corporations, then these facilities could be the best bet. Governments lease them to people in this specific position, making them an affordable option for short-term projects.
Unlike other warehouses, distribution facilities are large enough to handle multiple elements of the supply chain operation. Not only do they store your inventory, but they can also pack and ship them. Thanks to computerized control systems, you can expect a fast, convenient, and reliable warehousing and distribution experience.
Service Level Agreements
Picking a warehousing partner? The service level agreements you put in place (or SLAs, for short) are another crucial part of the equation.
Any facility you hire should offer competitive SLAs in key areas, including (but not limited to) dock-to-stock time, cycle count accuracy, and fulfillment accuracy. The happy results of having solid SLAs in place should be improved customer experience and inventory management.
Remember the Lowdown on Warehousing and Storage
Warehousing is a core consideration for any business owner who plans to store and ship inventory. Unfortunately, most people know very little about the industry, no matter how large it’s become! Only by learning about the options and processes involved can anyone expect to pick the right facility for their needs.
We hope this post has helped in that regard. Keep these insights on warehousing and storage in mind and you should feel far more confident about the task ahead. To learn more about similar topics, browse the business section of the website now.