What is Warehouse: Functions, Benefits, and Types in 2022

What is Warehouse: Functions, Benefits, and Types

All Things Should you know about Warehouse in 2022

“What department do you work in?” “Warehouse.” “Oh, the warehouse, huh?” “Different. I’m in the warehousing department.”

What’s the difference between a warehouse and a warehouse, right?

The warehouse is a logistics system in a warehouse in a company to store and provide information related to the status of delivery of goods as well as physical conditions to the inventory of goods whose data will be updated at a certain time.

“Oh, take care of logistics too, huh?”

“Hm, it’s still not quite right, here!”

For most people, the warehouse is the same as logistics. The phrases warehouse and logistics may be heard and used by many people so that people think that warehouse and logistics are the same things.

The two companies have different functions although they cannot be separated from each other.

Why is there a warehouse, what are its tasks, and how does it work? Read this article to the end, yes, Majoopreneurs!

What is Warehouse?

The warehouse is a warehousing or logistics system used by companies to store and provide goods.

The difference with an ordinary warehouse is that the warehouse is a system that provides information about the availability of stock of goods, the condition of the goods, to the status of the delivery of goods.

This system has an important role in the supply chain management (SCM) or supply chain system which will always be updated and can only be accessed by a few employees who are appointed according to the provisions.

Some important activities that occur in the warehouse system are receiving goods, unloading, and sending goods out of the warehouse.

The warehouse will store goods in large quantities. That’s why a structuring technique is needed in the warehouse to make it easier to search for goods.

Things you need to pay attention to when you want to build or rent a warehouse building are the location, building layout, room division, the number of requests for goods from the market, the type of warehouse, and other supporting facilities.

If necessary, you can also equip the building with advanced technology such as automatic material handling.

Reasons for Warehouse Requirement

The warehouse is an important logistics support, here are some reasons warehouses are important in logistics activities:

1. Transportation – Production Cost Reduction

The warehouse functions to control processes and streamline transportation and production costs.

At the time of purchasing goods, sometimes there is a minimum volume that must be purchased to streamline transportation costs, but sometimes this has its consequences, namely the emergence of inventory (inventory of goods).

2. Coordination of Supply and Demand

Although the warehouse is a place to store goods, the warehouse can also be used as a place to coordinate supply and demand.

In the market, demand often fluctuates so warehouses are needed for the storage of goods when production volumes are increasing and demand is decreasing.

3. Production Needs

In some final processes of producing an item, the warehouse also functions as the final process.

Items that require storage time to improve the quality of their goods include cheese and wine. Several other items are also being finalized in the warehouse.

4. Marketing Considerations

Some goods, such as food, require availability in the market.

To keep the supply continuously available, it is necessary to have a warehouse close to the market. Warehouses are needed to simplify and speed up the distribution process.

Benefits of Warehouse

The warehouse company provides the appropriate facilities for the goods to be stored.

For example, a food product warehouse has different facilities from a non-food storage warehouse.

The quality of the products stored in the warehouse is maintained before being sent because the condition of the products will be recorded periodically.

In addition, the warehouse is also a useful information center for the company. From the warehouse, companies can get information about product availability, supply and demand, product turnover, and the movement of these products to consumers.

From this data, producers can make decisions based on the number of products that are most widely distributed and product predictions that will trend or not.

Due to the complete data warehouse, product delivery will be more efficient. Not only will the product be accepted by consumers more quickly, but using warehouse services will also increase customer satisfaction.

Although basically, a warehouse is a place to store products, a warehouse can also provide space to assemble goods before they are sent to consumers.

The warehouse can also be a center for returning goods.

Functions of Warehouse

The warehouse is one element that has an important role in the supply chain management system. These important functions and roles, such as:

  • Speeds, one of the company’s competitive strategies is to supply products as close to the market as possible so that the marketing or delivery process can be faster.
  • Efficiency is assessed from the level of effectiveness of the supply chain of products from various units. Usually, many companies will continue to improve this system.
  • Effectiveness, making it easy for consumers to access and obtain products or goods.
  • Reliability has informative, communicative, and execution system functions so that all the functions that have been mentioned run effectively and efficiently.

Warehouse Layout Recommendations

So that the warehouse or warehouse has an effective space and logistics system by minimizing material handling costs, here are some methods that you can apply to design a warehouse layout.

  • Shared storage, the basis of this method is First In First Out (FIFO) where products or goods that will be sent by consumers shortly are placed near the in-out door (in and out).
  • Dedicated storage, the principle of this method is to store products or goods in a section that has been provided and remains unchanged.
  • In class-based storage, the principle of this structuring method is to classify products into 3 groups according to Pareto analysis or pay attention to size to product type.
  • Continuous warehouse, the continuous method applies the principle of make to order, namely products are stored based on orders or customer requests or those that have entered the period between products.

This method also pays attention to the maximum and minimum availability of a product or item to estimate the costs to be incurred by the company.

What is Warehouse Staff / Warehouseman

Warehouse employees or warehouse staff are workers who are responsible for maintaining the smooth distribution and arrangement of goods in the company’s raw material and product storage building.

In addition, they are tasked with placing goods according to lists, and data, as well as ensuring that stock-taking runs according to operational standards.

According to the above definition, we can conclude that the warehouse staff is part of the logistics division.

Their job is to take care of inventory, arrangement, record stock, ensure that there are no expired products, and even make a report every time they do a stock take.

In addition, they also have responsibilities in distribution starting from preparation to releasing goods into the hands of distributors.

Given that they have a lot of tasks, it means that you must have high accuracy, physical strength, and the will to work hard if you want to work as warehouse staff.

What is Data Warehouse?

A Data warehouse is a place to store data that comes from various resources and other data and then stored properly.

The data warehouse has integrated characteristics, is more subject-oriented (customers, sales, and various other things), has a time dimension, and is more fixed.

Data warehouse also means data that can support the decision-making process by all management parties in a company.

The data warehouse can integrate various types of data from various types of systems or applications, so companies only need to access the data through one door, especially for management.

For example, an example of a data warehouse in a business is data collected in accounting applications, websites, marketplaces, social media, and much more.

All this information can be used by the company to analyze and determine the most appropriate method for conducting sales promotions.

meaning of warehouse defination details
meaning of warehouse definition details

Types of Warehouses Based on Characteristics

The types of warehouses based on their characteristics are as follows:

Raw Material Storage (Stock Room)

This type of warehouse serves to store every material needed in the production process.

This type of warehouse is divided into two types of rooms, namely inside the factory building or production room (indoor) and some materials are stored outside the building (outdoor).

Working Process Storage

The goods that are stored in this type of warehouse are goods or materials that are in the processing or production stage. You can find types of warehouse working process storage in the manufacturing industry.

In this industry, the materials needed must pass the selection operation and production work first.

Finished Goods Storage

As the name implies, this type of finished goods storage warehouse stores products or goods that have been completed.

Also Read: What is a Trading Company, How Is it Different from Other Businesses?

Types of Warehouses Based on Ownership

Public Warehouse

A warehouse that is obtained by renting from another party. Public warehouses have several other types, namely:

1. General Merchandise
Warehouses are designed to be used by manufacturers, distributors, and customers to store the goods they sell. The goods stored in this warehouse usually do not require special handling.

2. Cold Storage Warehouse
This warehouse is usually used to store goods or products that require a certain temperature. Perishable goods include:

Food and Beverages such as fruit, vegetables, seafood, and milk
Factory products such as photo paper chemicals, photographic film

3. Bonded Warehouse
This type of warehouse is usually used by customs and excise agencies to store goods that are in quarantine or are still in the processing of shipping documents before the goods are imported.

4. Households Goods Warehouse
This warehouse is usually used by furniture factories, and household moving companies. In some cases, this warehouse is also used to store merchandise.

5. Special Commodity Warehouse
This type of warehouse is usually used specifically to store certain commodities that require special handling. This warehouse has the characteristics that distinguish it from other types of warehouses, namely:

  • Is a place of storage for a certain time
  • Commodity products stored are of the same quality and grade
  • In general, additional facilities are provided in the warehouse, such as rice milling machines and others

6. Bulk Storage Warehouse
This warehouse is usually used to store products in the form of liquid and dry in large sizes.

In this warehouse, there is usually a process of breaking down the sizes into smaller ones.

Private Warehouse

Warehouses that are built by themselves or usually these warehouses are built with a leasing process.


The criteria for a warehouse that serves as a warehouse location show that the warehouse is not built haphazardly. In building a warehouse, some criteria are considered in the construction of a warehouse.

There are several types of warehouses and all of them differ according to their designation and purpose. You have to make sure you have the right warehouse for all your business warehouse activities, yes, entrepreneurs!

Also Read: Understand the Online Vegetable Business Strategy Before Starting

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