Warehouse Fundamentals: Types, Functions, and Management

Core Commercial Service Logistics Parameters

From a logistics perspective, commercial services fundamentally rely on three key parameters:

• Merchandise availability for immediate delivery to the client.
• Quick merchandise delivery.
• Reliability of the promised delivery date to the customer.

Warehouse Definition and Challenges

A warehouse is a "planned space for the efficient location and handling of materials and merchandise." Warehouses aim to solve two primary problems:

• Correct layout design.
• Efficient handling of operational processes (product inputs and outputs).

Warehouse Operational Processes

A warehouse can be considered a production center where a series of processes are carried out:

• Receiving merchandise.
• Product adaptation (packing, labeling, etc.).
• Product storage (physical location).
• Product selection for orders (picking).
• Order preparation for delivery.
• Truck loading.

Warehouse Manager Responsibilities

Key responsibilities of a Warehouse Manager include:

• Ensuring equipment is updated and facilities are in perfect condition.
• Maintaining proper information systems for daily activities.
• Guaranteeing correct surveillance and control of stock.
• Maintaining workplace security, health, and hygiene conditions according to legislation.

Warehouse Management Effectiveness Factors

The effectiveness of warehouse management depends on the following aspects (functions):

• Speed, accuracy, and efficiency in material input and output processes.
• Collection and dispatch of products regarding quality and speed.
• Periodic reviews of space and storage volume.
• Valuation and maintenance of execution standards for operational processes.

Warehouse Classification by Protection Level

Warehouses can be classified by the degree of protection their facilities offer against different atmospheric agents.

Outdoor Warehouses

These are not covered by a building and are typically delimited by metal fences or similar materials. These boundaries are often marked with names, numbers, or signs. Stored goods in these warehouses do not require protection from rain, sunlight, cold/hot temperatures, or other atmospheric agents. Examples include: vehicles, machinery, raw materials for the wood industry, iron, some types of sand and gravel, bricks, and wire rolls. Some materials stored outdoors may still require additional protection, such as plastic sheeting, tarps, or wooden covers.

Covered Warehouses

These are constructed using various materials, often featuring a metal structure that forms the building framework. Their primary objective is to protect materials from environmental conditions that could negatively affect product quality. Covered warehouses can be of different types (e.g., self-supporting, conventional, or automatic).

Warehouse Classification by Stored Goods Nature

Warehouses can also be categorized based on the nature of the goods they store.

Raw Material Warehouses

These are typically located within a factory or production plant. They hold materials, supplies, and containers intended for later use in the transformation process. Raw material warehouses can be either outdoor or covered.

Intermediate Product Warehouses

These should ideally be located within the production plant. Their objective is to serve different production phases, ensuring the timely availability of components. Some intermediate products might be considered finished at certain stages. Examples include components for vehicles, electrical appliances, or items in series production.

Finished Product Warehouses

Their principal function is to regulate supply according to industry demand and customer orders. These are the most common and often the most expensive types of warehouses. A key goal for finished product warehouses is to maximize stock rotation.

Warehouse Classification by Company Function

Warehouses can be classified by the role they play within a company's operations.

Service Warehouses

These are integrated with the manufacturing industry, storing either raw materials or finished goods. Their size and systems depend on specific industry needs. Examples include warehouses in the chemical industry or cellulose pulp manufacturing.

General Deposit Warehouses (Public Warehouses)

These warehouses are established to receive and store goods belonging to other companies (third parties). Their income is derived from fees based on the value of stored goods and the space occupied. They may offer additional services like customs brokerage, transportation, and packing. Clients use this type of storage for various reasons:

• Financing/funding needs.
• Temporary storage requirements.
• To obtain credit against stored, unsold products.

Logistics Warehouses

These are established to support the development and efficiency of a business's logistics operations. An example includes warehouses operated by transportation companies.

Logistics Bases

A logistics base is a central warehouse holding all merchandise destined for transport within a specific network or operation.

Regulator and Distributor Warehouses

These are large depots storing significant quantities of products without performing any transformation. Their primary role is distribution. Examples include central storage facilities for large retail networks or regional distribution centers.