Whenever an e-commerce business grows, it requires ample space to store its products. This is why warehousing facilities are so important. A warehouse facility is a commercial space used for storing products before they are distributed to customers. Nowadays, most warehousing facilities are equipped with advanced technologies, such as WMS, IMS, and OMS, to manage inventories. Let’s explore what warehousing facilities are, their key components, how they work, and their pros & cons in depth.
What is Warehouse Facility?
A warehousing facility is a dedicated physical space or infrastructure that stores the products of the business. These businesses can be B2B, B2C, D2C or retail. Whenever a customer places an order, the warehouse company receives the details in its order management system. The ground staff locates the product using the WMS software then picks up the product, packages it, and hands it to the shipper. The shipper then delivers the ordered product to the customer.
A warehouse storage facility manages inventory in real-time and avoids problems like overstocking and out-of-stock issues. They deliver products either on the same day or the next day and thus effectively fulfill customer orders. This increases customer satisfaction and brand reputation in the market.
The ideal shared warehouse leverages advanced technology and is designed to provide maximum efficiency. Let’s discuss this with an example: AAJ Supply Chain Management is a leading logistics company in India. It has warehouses in various locations in India, such as Mumbai, Delhi, Bangalore, and many more.
All of this Company’s warehousing facilities are equipped with advanced technology. They even have scanning base operations that reduce inventory errors. Their facility is camera enabled, which secures the client’s goods. AAJ is the perfect example of an ideal 3PL warehouse facility.
Key Components of Ideal Warehouse Facilities in India
The key components of ideal warehouse facilities in India are as follows.
1. Strategic Location
An ideal warehouse facility is nearer to highways, ports, and airports. It fulfills orders faster for customers and enhances brand reputation in the market. Simultaneously, it reduces the company’s logistics costs.
2. Robust Infrastructure
Expanding the warehouse requires more land, which can be costly for enterprises. So now, most warehousing facilities want to use vertical space for storage. An ideal warehouse should have a high ceiling to facilitate a vertical storage solution. There must also be good ventilation, lighting, and a fire exit plan for the safety of workers.
3. Advanced Management System
The ideal warehouse should leverage advanced technology, such as a warehouse management system, inventory management system, and transport management system, to track goods and products in real time and fulfill orders faster.
The transport management system allows one to choose the most efficient route for goods transfer, reducing the business’s fuel costs. Again, if we talk about the warehouse management system, it optimises the space and assigns specific tasks to the respective workers.
4. Material Handling Equipment
An ideal warehouse must have material handling equipment, like forklifts and conveyor belts. These machines lift heavy products and transport them efficiently from one place to another, reducing the company’s labour costs and increasing safety inside the warehousing facility.
5. Security Systems
An ideal warehouse must have 24-hour CCTV surveillance, an alarm system, and a fire detection system. These systems increase safety inside the warehouse and protect the goods from fire and theft.
6. Storage Flexibility
An ideal warehousing facility should have various storage options, such as racks and shelves and temperature-sensitive zones for perishables or food items.
7. Skilled Workforce
An ideal warehousing facility must have a trained team. For example, it should have a warehouse manager, executives, forklift operators, pickers, and packers.
8. Power Backup & Utilities
Power issues can damage food or pharmaceutical products. The ideal warehouse must have an uninterrupted power supply.
The ideal warehousing facility should be leveraged with proper lighting and have diesel generators and UPS systems.
9. Compliance & Certifications
Certain compliance and certifications ensure that the warehouse follows all protocols according to industry standards and Government regulations. For example, it should provide an FSSAI certificate if it is storing food products.
10. Sustainability Features
An ideal warehouse should provide sustainability features like rainwater harvesting and solar panels to reduce the company’s operating costs. These features are even safe for the environment.
How Warehouse Storage Facility Works?
Here is a step-by-step guide on how to work in the warehouse storage facility.
1. Receiving Products
The warehouse facility receives products from the business. The staff inspects the product quality and updates it in the warehouse management system.
2. Storage
The warehouse staff stores the products in their designated locations. They store products based on their turnover, size, shape, and demand. They have different types of warehouse storage solutions, such as vertical racks, bins, or shelves for product storage.
3. Picking And Packaging
When a customer orders a product from the e-commerce site, the product details are automatically sent to the warehouse storage facility. Most warehouses are leveraged with warehouse management systems. This software generates a picking list. The staff picks up all the ordered products and brings them to the packaging zone. The products are packaged properly so that they will not be damaged during transport.
4 . Shipping
The warehousing facility groups products based on their transportation mode and destination. It then hands over the products to the shipper, who delivers them to the customer. Efficient shipping services reduce delivery time and enhance customer satisfaction.
5. Reverse Logistics
If customers do not like the product, they raise a return request. The warehousing staff picks up the product from the customer’s doorstep and brings it to the warehousing facility. The staff inspects the product and then decides whether to restock or repair it.
Pros & Cons of Outsource Warehousing Facility for Your Storage & Fulfillment Needs
Pros
1. Lower Cost
Small and medium enterprises do not have enough money to buy land, construct a warehouse, or purchase heavy equipment like a forklift. Hence, they depend on a 3PL logistics company to store their products.
A third-party logistics Company has warehousing facilities. These facilities are leveraged with technology and have equipment like forklifts and conveyor belts. They can even fulfill orders faster. Outsourcing the warehousing facility saves business costs.
2. Technology
Most of the third-party logistics provider’s warehousing facilities are equipped with advanced technology, such as warehouse and inventory management systems. These systems help track inventories in real-time and avoid problems of overstocking and understocking.
3. Scalability
Most warehousing facilities offer scalable warehouse solutions, which means they can accommodate products as the business grows in the future.
4. Value Added Services
Most 3PL companies provide value-added services like kitting, packing, and reverse logistics.
Cons
1. Less Control
When an e-commerce business outsources its warehousing operations, it will have less control over them.
2. Data And Privacy Risks
Sharing vital information with the logistics Company in India may pose security issues.
Final Thoughts
Warehousing facilities play an essential role in the e-commerce supply chain. An efficient warehousing facility stores goods in the proper location and ensures their safety. It even delivers products faster to customers and popularizes brand reputation in the market. Some companies cannot have their own warehousing facilities. Hence, they outsource it to a third-party logistics provider.
AAJ Supply Chain Management
