Storage is keeping goods in a warehouse facility until they are ready to be used or shipped. Shipping is sending goods from one place to another, usually to customers or other businesses.
Storage and shipping services play a vital role in the smooth supply chain. Shipping moves products efficiently from production or warehouse to the customer’s doorstep. Storage refers to the systematic organization of goods or products inside the warehouse.
When a customer orders any product, it is picked, packed, and shipped to the customer’s doorstep. Here, shipping means the transportation of goods from one place to another, i.e., from the warehouse to the customer.
The Indian logistics market is growing rapidly today. It was valued at US$107.16 billion in 2023 and is projected to reach US$159.54 billion in 2024. The growth is mainly because of technological advancement and infrastructure improvement.
What Is Storage And Shipping?
Storage: Storage refers to storing raw materials or finished goods inside the warehouse in an organized manner before they are shipped to any business or customer. Proper storage improves the warehouse layout and enables the storage of more products inside the warehouse.
Nowadays, most of the top logistics Companies in India are equipped with advanced systems like warehouse management systems. This software enables the tracking of products in real-time and avoids problems like inventory misshapes.
Shipping: Shipping refers to the transport of physical goods from one place to another. Businesses choose the method based on the urgency of delivering goods and cost. There are multiple types of shipping. Here is a list of them below.
- Inbound Shipping(transportation of products from the manufacturing facility to the warehouse)
- Outbound shipping (transportation of products from the warehouse to the customer)
- Reverse Logistics(It involves the processing of customer returns and exchanges)
Types Of Businesses That Need Both Storage And Shipping
- Ecommerce Companies
- Retails Chains
- Pharmaceutical Companies
- Food and beverage business.
- Automotive parts
How are storage and shipping connected In the Supply Chain?
Storage and shipping are two essential aspects of the supply chain. A start-up first stores its products in storage or at home to meet customer demands. However, when the business grows, it does not have enough space to store products. Hence, it stores its products in a warehouse to fulfil customer orders efficiently. When a customer places an order, the order is picked, paid, and shipped to the customer’s doorstep.
Key Components of Storage and Shipping Services
The key components of storage and shipping services are as follows.
1. Inventory Storage
Inventory storage refers to the storage of goods and products before they are shipped to a customer or any business. There are two types of inventory storage.
- Short-Term Storage
- Long-Term Storage
2. Packaging And labelling
The warehouse staff thoroughly packages and labels the ordered product before shipping. Proper packaging ensures that the product will not get damaged at the time of shipping. Labelling can include barcodes, shipping addresses, product details, and handling instructions.
3. Order Fulfillment
Order fulfillment is a process of picking, packaging, labelling, and then delivering the product to the customer. When a customer places an order, the order is picked from the shelf and packed correctly. It is then handed to the shipper. The shipper will deliver the packed product to the customer.
4. Last Mile Delivery
Last-mile delivery is an essential step in the supply chain process. Here, the goods move from the warehouse to the customer or any business. Efficient last-mile delivery can enhance customer satisfaction and reduce wastage.
5. Reverse Logistics
Sometimes, customers do not want the returned product and place a return request on the ecommerce website. The business arranges the pickup, and finally, the staff will pick up the product from the customer on a particular date. The returned product is brought back to the warehouse.
Types Of Storage And Shipping Solutions
1. Self-Storage And Shipping
Self-storage is a commercial property where an individual or a business can store products for a temporary period. The main advantage here is that companies do not have to lease the entire warehouse operations. The company needs to inform shipping companies that it wants to ship certain products. The business does the packaging. Sometimes, the self-storage facilities properly package products and arrange courier facilities to ship the products to the destination.
2. 3PL Storage And Shipping
When a business does not have enough space for storing products and cannot ship them efficiently, then it outsources them to a third-party logistics partner. Most of the 3PL companies have warehousing facilities.
The business sends its products to the 3PL company. The warehouse staff of the 3PL company inspects them thoroughly and puts them on designated shelves and racks. When a customer orders any product from the e-commerce site, the product details are sent to the 3PL companies. The staff picks up the product, does proper packaging, and hands it to the shipper. The shipper will deliver the product to the customer’s doorstep.
3. Cold Storage and Shipping
Here, the temperature-sensitive products are stored in cold warehouses with a particular temperature zone. When an order is placed, the products are packed in thermal containers or gel packs and are transported through refrigerated trucks to preserve the quality of the product. The products that require cold storage shipping are pharmaceuticals, chemicals, cosmetics, foods and beverages.
4. B2B Shipping and Storage
B2B shipping and storage involves storing and shipping products from one business to another. Here, the products are quite heavy and shipped in bulk quantities.
Goods or products are stored in B2B warehouses. When a business places an order, the products are picked and appropriately packaged and then shipped to another business by rail, road, sea, or air freight.
5. B2C Shipping And Storage
Here, the products are stored in warehouses or fulfillment centers. When a customer places an order on the ecommerce website, then the order details are sent to the warehouse. The warehouse staff will pick up the ordered product, do packaging, and ship it directly to the customer’s doorstep.
How Integrated Storage and Shipping Boost Operational Efficiency?
- Reduces Cost: Automated warehouses do shipping and shipping faster and reduce the handling time and labour costs of a business.
- Fast Order Fulfillment: The orders are picked, packed, and shipped faster, which leads to faster order fulfillment and enhances customer satisfaction.
How to Choose the Right Storage and Shipping Provider?
Selecting the right storage and shipping provider will streamline the logistics efficiency. So, a business needs to choose the provider by keeping various factors in mind, which are listed below.
1. Access Your Business Requirements
A business needs to first focus on its requirements, such as the type of goods, storage required by them, shipping volume, and whether they need to ship within the nation or abroad.
2. Check Warehousing Capabilities
You need to check the capabilities, such as location, technology access, security, and scalability factors.
Warehouses located closer to the target markets can fulfill orders faster and enhance customer satisfaction. Again, they should be accessible to advanced technology like warehouse management systems. There should be 24-hour surveillance systems to prevent theft.
3. Evaluate Pricing
Evaluate the Pricing of the storage and shipping provider. A good shipping and storage provider should provide good services at an affordable price.
Benefits Of Professional Storage And Shipping Services
Professional storage and shipping services provide numerous benefits. Here is a list of them below.
1. Saves Space And Time For Business Owners
Outsourcing storage and shipping operations saves valuable space for a business. Businesses even get enough time to focus on core activities like product development and market exploration.
2. Better inventory visibility
Professional storage and shipping services have advanced technology like inventory management systems. It track inventories in real time and avoid problems like overstocking and out-of-stock issues.
3. Access to trained logistics professionals
A professional storage and shipping service has trained professionals who are experts in picking, packaging, and shipping operations
4. Scalability
Good storage and shipping provide scalable solutions, which means they will accommodate products and do shipping during holidays, peak seasons, or when the business will grow in the future.
5. Compliance With Shipping And Safety Standards
Reputed service providers will always ensure that the products are store and shipped following safety protocols and National and International standards.
Final Words
Storage and shipping services play an important role in streamlining a business’s supply chain operations. However, a business needs to choose the right storage and logistics solutions to increase efficiency and enhance customer satisfaction.
AAJ Supply Chain Management
