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November 20, 2023
November 20, 2023

10 Common Warehouse Types and Their Uses

Much like different tools in a toolbox carry out a specific function, each warehouse type serves a unique purpose. Learn the uses of 10 common warehouse types to decide which type of warehouse is right for your business.

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Warehouses are the unsung heroes of the supply chain, silently facilitating the movement of goods from manufacturer to consumer. However, not all warehouses are created equal. They come in a variety of types, each designed to cater to specific needs and industries. In this blog, we'll explore the primary types of warehouses, their differences, and the factors that influence their selection.

Tailored for tasks: delving into specifics

Warehouses can be categorized into several primary types, each designed to meet specific requirements. Here are 10 common types:

1.物流センター

物流センターは、商品流通の中心的な拠点である。輸送コストと配送時間を削減するため、戦略的に配置されている。ここで重視されるのは、効率的に製品を受け取り、分類し、出荷することである。これらの倉庫は、幅広い市場への迅速な参入を目指す企業にとって極めて重要である。

AutoStore 物流センターの3Dレンダリング

2. Fulfillment Centers

Fulfillment centers are the backbone of e-commerce. They specialize in picking, packing, and shipping individual customer orders. Speed and accuracy are paramount in these facilities, and they often incorporate advanced automation and robotics to meet the demands of fast-paced online shopping.

An AutoStore MFC 3-D rendering

3. Cold Storage Warehouses

Cold storage warehouses are designed to preserve perishable goods at low temperatures. They play a vital role in the food and pharmaceutical industries, ensuring products remain fresh and safe for consumption. Temperature and humidity control is essential in these warehouses.

4. Bulk Storage Warehouses

Bulk storage warehouses are optimized for storing large quantities of a single product, such as grains, chemicals, or raw materials. These warehouses are often located near production facilities and are cost-effective for managing bulk goods.

5. Cross-Docking and Transloading Centers

Cross-docking and transloading centers are focused on the efficient transfer of goods from one mode of transportation to another. These warehouses minimize storage time and are crucial for businesses looking to streamline their supply chains and reduce inventory holding costs. Here are the differences:  

  • Cross-docking facilities serve as transfer points for goods, where products are quickly unloaded from inbound trucks and loaded onto outbound trucks, reducing storage time.
  • Transloading centers facilitate the transfer of goods between different modes of transportation, often connecting ocean vessels, trucks, or rail.

6. Public Warehouses

A public warehouse is a third-party storage facility or distribution center that offers storage and handling services to various businesses and individuals on a fee basis. Unlike private warehouses, which are owned and operated by a single company for its exclusive use, public warehouses provide shared storage space and services to multiple clients. These facilities are often equipped with infrastructure and expertise to handle a wide range of products and may offer services such as inventory management, order fulfillment, transportation, and more. Public warehouses are commonly used by businesses seeking flexibility and cost-effective storage solutions without the commitment of owning and managing their own warehouse space.

7. Cooperative Warehouses

A cooperative warehouse is a storage facility jointly owned and operated by a group of companies or individuals who share the facility's costs and resources. This cooperative arrangement allows multiple businesses to collaborate and pool their resources to create a shared storage space that may be more cost-effective and efficient than each entity operating its own private warehouse. Cooperative warehouses are typically used by smaller businesses or organizations that may not individually require a dedicated storage facility. The members of the cooperative often share responsibilities for management, maintenance, and operational tasks, allowing them to benefit from cost savings and increased storage and distribution capabilities while still maintaining a degree of control and ownership over the warehouse.

8. Private Warehouses

A private warehouse is a storage facility that is exclusively owned and operated by a single company for its own use. Unlike public warehouses, which provide storage services to multiple clients on a fee basis, private warehouses are dedicated to a single company's storage and distribution needs. These warehouses are designed and managed to meet the specific requirements of the owning company, allowing for greater control over operations, security, and inventory management. Private warehouses are often used by large enterprises or organizations that have consistent and substantial storage needs, and they offer the advantage of complete customization and confidentiality.

9. Contract Warehouses

Contract warehouses are a hybrid option that combines aspects of both public and private warehousing. In this arrangement, a company contracts with a third-party logistics (3PL) provider to operate and manage a dedicated storage facility that caters exclusively to the contracting company's needs. Contract warehouses offer the advantages of customizability and reduced operational responsibilities while still providing some level of flexibility for the client.

Arvato AutoStore system Grid for Ritual Cosmetics in the Netherlands
Arvato provides 3PL services to European e-commerce retailer Rituals Cosmetics using an AutoStore Grid customized with a unique bunker facility for safely storing gases, aerosols, and flammable liquids.

10. Bonded Warehouses

A bonded warehouse is a specialized storage facility that is authorized and regulated by the government to store imported goods before the payment of customs duties or taxes. These warehouses are often used to facilitate international trade and customs clearance processes.

The right fit: how businesses choose the right warehouse type

Strategic location decisions play a significant role in determining the type of warehouse a business needs. Proximity to suppliers, customers, and transportation infrastructure all influence this decision. A company distributing fresh produce may opt for a cold storage warehouse near farms, while an e-commerce giant might choose fulfillment centers strategically located to cover major urban areas.

Moreover, the nature of the goods stored is a key factor. Perishable items require cold storage, while small, high-demand items are best suited for fulfillment centers. Understanding the volume, dimensions, and turnover of goods is essential to make an informed choice.

Cost implications

Different warehouse types come with varying cost structures. Fulfillment centers with high automation, for instance, may require significant upfront investment but can lead to long-term cost savings through improved efficiency.

Environmental and sustainability concerns

Environmental sustainability is gaining prominence in warehouse design. Businesses are opting for eco-friendly practices, including energy-efficient lighting, insulation, and environmentally responsible material handling.

Standouts in storage: real-world examples

Amazon's Fulfillment Centers

Amazon, the e-commerce behemoth, has a vast network of fulfillment centers across the globe. These high-tech facilities are equipped with robots to pick and pack orders, ensuring swift and accurate deliveries to customers.

Lineage Logistics' Cold Storage

Lineage Logistics is one of the largest cold storage companies, serving the food industry. They operate state-of-the-art cold storage warehouses to maintain the freshness and safety of various food products.

Kesko's MFC

Finnish e-grocer Kesko operates an AutoStore micro-fulfillment center (MFC) in Helsinki that consists of two AutoStore storage systems: one for ambient products and another for chilled goods. The innovative system has doubled daily delivery capacity, reduced same-day delivery times to six hours or less, and reduced in-store picking staff by 80%.

ウォルマートの物流センター

ウォルマートの物流センターは、小売大手の広大なサプライチェーンをサポートするために戦略的に配置されている。ウォルマートの各店舗に効率的に商品を配送し、棚に様々な商品が豊富に陳列されていることを保証している。

Best Buy's Regional/Local Warehousing Network

アメリカの家電量販店ベスト・バイは、電子商取引の爆発的な需要に対応するため、各地域の物流センターに5台、都市部の電子商取引センターに3台の計8台のAutoStore システムを導入しました。これらの新しいシステムにより、ベスト・バイは5,000万人の顧客に翌日配達を提供し、注文を時間通りに店舗に届けることができるようになりました。

A Best Buy employee picking goods from an AutoStore Port
ベスト・バイは、地域物流センターと都市部のeコマース施設という2種類の倉庫で、AutoStore システムを運用しています。

The evolution ahead: anticipating the next wave of warehouse innovations

Technological advancements have had a profound impact on warehouse design and operations. Automation, robotics, and AI are increasingly integrated into warehouses to enhance efficiency. Drones and autonomous vehicles are being tested for tasks like inventory management and last-mile delivery. Here are some other innovations that should have a major impact:

Automated cold or frozen warehouses

Automated cold or frozen warehouses offer several benefits, particularly in the storage and management of temperature-sensitive goods, such as frozen foods, pharmaceuticals, and other perishable items. Some of the advantages of automated cold or frozen warehouses include:

Woman picking groceries from Kesko AutoStore Grid in Finland
Kesko's chilled storage AutoStore Grid has helped improve delivery capacity and reduce same-day delivery times to six hours or less.
  • Enhanced safety: Working in cold or frozen environments can be physically demanding and pose health risks to employees. Automation reduces the need for human involvement in these extreme conditions, leading to improved worker safety and reduced instances of injuries associated with cold environments.
  • Energy efficiency: Many automated cold or frozen warehouses are designed with energy-efficient features, such as optimized refrigeration and lighting systems, to reduce energy consumption and operating costs. This not only benefits the environment but also helps control operational expenses.
  • Temperature control: Automated systems can maintain consistent and precise temperature levels, reducing the risk of spoilage, product degradation, or loss due to temperature fluctuations.
  • Improved product quality: Cold or frozen storage automation helps preserve the quality and freshness of products, ensuring that they meet quality and safety standards.
  • Space optimization: Automated systems can maximize storage capacity by utilizing high-density racking, narrow aisles, and efficient storage algorithms, making the most of available space. This is especially beneficial in cold or frozen warehouses where space is at a premium.

Hybrid warehousing

The trend of hybrid warehouses with distribution and fulfillment centers is driven by the need for flexibility, efficiency, and responsiveness in modern supply chains. As consumer expectations continue to evolve, businesses are finding that combining these two functions offers a competitive advantage and helps them meet the demands of the e-commerce era while optimizing operational costs. Reasons for going hybrid include:

  • E-commerce growth: The exponential growth of e-commerce has transformed consumer shopping habits and supply chain logistics. Retailers and e-commerce companies are increasingly relying on warehouses that can support both distribution and fulfillment functions to meet the demands of online shoppers.
  • Faster order fulfillment: Consumers have come to expect shorter delivery times and efficient order fulfillment. Hybrid warehouses are strategically positioned to facilitate quick order processing and same-day or next-day deliveries by integrating distribution and fulfillment capabilities in a single location.
  • 在庫管理:物流センターとフルフィルメントセンターを組み合わせることで、より効率的な在庫管理が可能になる。小売企業は、ハイブリッド倉庫の在庫レベルを最適化することで、全体的な在庫維持コストを削減し、需要予測を改善し、商品の過剰在庫や在庫不足のリスクを最小限に抑えることができる。
  • Geographic reach: A network of strategically located hybrid warehouses allows companies to extend their geographic reach and reach a broader customer base. These warehouses can serve both local and regional markets, reducing transportation costs and delivery times.
  • Seasonal flexibility: Hybrid warehouses are well-suited for businesses with seasonal fluctuations in demand. During peak seasons, they can ramp up fulfillment operations, and during slower periods, they can focus on distribution and inventory management.
  • Cross-docking: Cross-docking is the process of moving goods directly from receiving to shipping with minimal storage in between. Hybrid warehouses can efficiently facilitate cross-docking, reducing handling and storage costs and expediting product flow through the supply chain.
  • コスト削減:物流センターとフルフィルメントセンターを別々に運営する代わりに、単一のハイブリッド倉庫を運営することで、コスト削減を実現できる。このアプローチでは、インフラ、労働力、テクノロジーの冗長性を最小限に抑えながら、運営効率を高めることができる。

Environmental concerns

Environmental and sustainability concerns are also driving change. Energy-efficient warehouse designs, recycling programs, and eco-friendly packaging are becoming more prevalent. An example is the new 650,000-sf Medline facility in Hammond, LA, a LEED-certified facility with state-of-the-art, energy efficient systems that include AutoStore.

Additionally, a focus on resilience and disaster preparedness will become crucial as warehouses face the challenges of climate change and global disruptions.

まとめ

In conclusion, the world of warehouses is a fascinating one, where order accuracy, location, technology, and sustainability intertwine to keep the supply chain moving efficiently. The choice of warehouse type depends on the specific needs of the business, and the future promises even more exciting developments as technology and environmental concerns continue to shape this critical industry.

よくある質問

What are the various types of warehouses?

The 10 primary types of warehouses include:

  • Distribution Centers
  • Fulfillment Centers
  • Cold Storage Warehouses
  • Bulk Storage Warehouses
  • Cross-Docking and Transloading Centers
  • Public Warehouses
  • Cooperative Warehouses
  • Private Warehouses
  • Contract Warehouses
  • Bonded Warehouses

What are the four major types of warehousing?

The four major types of warehousing are:

  • Private Warehouses
  • Public Warehouses
  • Contract Warehouses
  • Cooperative Warehouses

What is the most common type of warehouse?

最も一般的な倉庫のタイプは業種や場所によって異なるが、現代のサプライチェーンでは物流センターやフルフィルメントセンターが最も普及していることが多い。これらのタイプの倉庫は、特に電子商取引や小売流通の文脈では、効率的に製品を受け取り、保管し、出荷するために不可欠である。

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