It is the act of storing goods that will be sold or distributed later. While a small home-based business may store its products in an available room, basement, or garage, large businesses typically own or rent a space in a building that is specially designed to store.
Warehouse vs. Center of distribution
You may hear that “storage units near me” and “distribution center” are used interchangeably but technically a warehouse provides only storage. On the other hand, a distribution center stores the products but also completes the orders.
If the purpose is only to store or store more complete orders, the warehouses use specific elements that help manufacturers, distributors and retailers to monitor the inventory and store it perfectly. A look at the basics includes:
•Shelving systems and shelves that offer maximum storage capacity and easy access to products.
•A climate control system for stored products. This is particularly important for frozen products or those that require refrigeration, including certain pharmaceutical or laboratory products, and others that are damaged if exposed to too much heat.
•Inventory control software that tells the product owner – who is not necessarily the owner of the building – where the individual units are in system all the time.
•Equipment that can move products from point A to point B – forklifts, platform jacks, containers that store products for orders, and conveyor belts, for example.
•Submission of supplements to complete orders.
•People who load the products to the warehouse and others (“pickers”) who complete the orders in a real distribution center, plus those who manage the place and the operation.
•Security to protect the stored products.
•Access to a transport that is effective in terms of cost and that carries the products in or moves them out while the orders are completed. This often means easy access to interstate highways, rail lines or airports.
The storage business
Store and everything that goes hand in hand with this is part of a sophisticated industry known as logistics management. Logistics includes procurement, inventory management, and distribution. It falls within the supply chain, which also includes product development, marketing, sales, and other disciplines related to the product.