What to Know About Warehousing Services

Warehousing is an essential component of logistics and supply chain management. It covers the storage of goods in a warehouse facility until they are needed for distribution. Logistics service providers (LSPs) play a vital role in warehousing services, as they provide various types of warehousing solutions tailored to meet the specific needs of their customers. Let’s review the different types of warehousing services provided by LSPs, the equipment needed, warehouse management systems used, insurance, TSA requirements, and security features.

Public warehousing is a type of warehousing service that allows multiple companies to store their goods in a shared warehouse facility. The LSPs that provide public warehousing services have a diverse range of customers with varying storage needs. They usually charge their customers on a per-pallet or per-square-foot basis. Public warehouses are typically equipped with standard material handling equipment, like forklifts, pallet jacks, and conveyor belts.

Contract warehousing is a type of warehousing service that involves a long-term commitment between the LSP and the customer. In this arrangement, the LSP provides a dedicated warehouse facility to the customer, which is exclusively used for their storage needs. The equipment used in contract warehousing is usually customized to meet the specific needs of the customer. The warehouse management system (WMS) used in contract warehousing is usually a customized version of a standard WMS.

Distribution warehousing is a type of warehousing service that focuses on the efficient distribution of goods. The LSPs that provide distribution warehousing services typically have multiple warehouse facilities strategically located near major transportation hubs (airports and/or seaports). This allows them to quickly distribute goods to their intended destinations. The equipment used in distribution warehousing is usually geared towards fast-paced and high-volume distribution. The WMS used in distribution warehousing is usually integrated with transportation management systems to facilitate seamless distribution.

Cold storage warehousing is a type of warehousing service that involves the storage of temperature-sensitive goods. The LSPs that provide cold storage warehousing services have specialized warehouse facilities that are equipped with temperature-controlled environments. The equipment used in cold storage warehousing includes refrigeration units, temperature sensors, and specialized material handling equipment. The WMS used in cold storage warehousing is usually integrated with temperature monitoring systems to ensure that the goods are stored at the correct temperature.

When it comes to equipment needed, LSPs usually provide the necessary material handling warehouse equipment, like forklifts, pallet jacks, and conveyor belts. However, in the case of specialized equipment, such as refrigeration units for cold storage warehousing, the LSPs might require the customer to provide the necessary equipment.

Warehouse management systems are an essential part of any warehousing operation. They help to streamline the storage and distribution of goods by providing real-time data on inventory levels, order processing, and transportation management. The WMS used by LSPs usually have standard features, such as inventory tracking, order management, and reporting. However, in the case of specialized warehousing services, like cold storage warehousing, the WMS might have additional features, such as temperature monitoring and control.

Insurance is an essential aspect of warehousing services. LSPs usually provide standard liability cargo coverage for the goods stored in their warehouse facilities. However, it is essential for customers to understand the extent of the insurance coverage provided, and whether it is sufficient to cover their goods.

TSA requirements and warehouse security features are also crucial aspects of warehousing services. LSPs that handle air cargo are required to comply with the TSA regulations. This includes screening all cargo before it’s loaded onto an aircraft. Security features, such as CCTV cameras, access control systems, and security personnel, are also essential to ensure the safety and security of the goods.

Are you in need of warehousing services? If so, you can get in contact with Aeronet Worldwide here. Aeronet has warehousing facilities located throughout the U.S.