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Types of Warehouses in Logistics What are they and what do they consist of?

Do you know which warehouse to choose for your goods? In this installment of our blog we explain the classification of each one and the trends and innovations in storage.
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The term logistics has been with us since post-war times - especially during World War II - when it became necessary to distribute ammunition and food supplies to troops crossing by sea and land during the years of combat. The cooperation coming from different continents and the dispersion of armies and communication challenges made it necessary to plan inventories, storage and distribution.

After World War II, perhaps the biggest transformation in logistics was brought about by the birth of the internet and a third significant change brought about by the covid-19 situation. 

Mexico has become in the last 5 years the hub of the South American startup ecosystem and strengthened during the pandemic years, increasing the demand for talent -especially software development profiles-, m2 for the creation of warehouses and units for distribution. 

The majority of the companies established in the country are Mexican, these represent only 36% of the tenants of industrial parks affiliated to AMPIP, compared to only 36% of the tenants of industrial parks affiliated to AMPIP:

  • 33% of the United States
  • 20% European
  • 2% of Canada
  • 2% of China and rising

The reactivation leap in the economy and the awakening of all technologies after 2020, have revealed that between 10 and 15% of the total square meters was the average occupancy of warehouses in companies before the pandemic. Today it exceeds 30% and of the 34% of occupation by companies in the logistics sector, it can be identified that 10% are only e-commerce companies.

Finally, the 'prophecy' that falls on warehouse logistics is heeded and the 'cult' begins, that in order to keep pace with this commercial explosion, it is necessary to invest in logistics operators, who are directly responsible for ensuring that all the promotion and promises of your merchandise, in the end, fulfill their purpose. That the last mile be a specialty.

Different types of warehouses can be distinguished, depending on how products are handled, equipment is used and storage systems are applied.

How are Warehouses classified and what are their Logistics?

We will see then that in the path followed by the logistics trend in the new millennium, general guidelines have been professionalized for each warehouse or warehouse implementation logistically speaking. To be consistent, in 5 main starting classifications

ACCORDING TO INFRASTRUCTURE/BUILDING/PARK AND/OR SQUARE FOOTAGE

The truth is that for this differentiation, enclosed spaces predominate in almost all cases, for all the reasons: ventilation, security, automation, conservation. But it is not counterproductive for certain products, of certain business models, that require natural ventilation and are better suited to storage in an open-air or hangar-type space.

We are talking about shipping companies, for example, aircraft or heavy machinery manufacturers and/or large materials producers.

ACCORDING TO THEIR ACTIVITY

For this section the guideline is very clear: 

  • When the company is of a commercial nature, also predominant, in this era of retail and e-commerce, which is monopolizing most of the daily needs of customers and which brings together almost all enterprises -at least in an initial stage-, they are increasingly efficient and intelligent spaces that, depending on the size and dynamism of the company, are used only as a warehouse or also for other logistics processes such as packaging, packing or labeling and/or manufacturing. logistics processes of packaging, packing or labeling and/or manufacturing.
  • For companies of an industrial nature, the layout of the space needs to be much more elaborate, as we are consolidating large batches of goods and meeting constant dispatch schedules.

ACCORDING TO THE LOGISTIC FUNCTION

Within the layout process , the logistics function of a warehouse, this planning of the processes and types of storage of goods is concerned, to help optimize the entire distribution, executing a previous protocol of organization for shipments. 

That is, in order to achieve traceability surveys and fulfill all delivery promises , guaranteed satisfaction, stock and the lowest rate of returns, in the name of the logic of procedures, 4 general ones are highlighted, but again, according to each brand logbook there are many more, which could differ in their form, but not in the objective.

  • Logistics Centers (CEDIS)

A warehouse where raw materials or any other element necessary to supply the production and/or commercialization process of a certain product are stored. 

Procurement warehouses must ensure that there is always what is needed to maintain a factory's production or product delivery, without being interrupted by shortages. 

  • Regional or Logistics Distribution Warehouse:

The main objective of their construction is the proximity to the areas/zones/regions/cities of permanent consumption. In the case of large multinationals such as Amazon -which has developed a whole methodology in its 'logistics centers' based on e-commerce-, with national and/or international coverage, franchises and superstores are essential to sustain their position in the market.

  • Temporary Warehouse, Shelf and/or Picking Warehouse

They are set up on an intermittent, seasonal or seasonal basis, depending on the needs in specific cases, offering a specially tailored service to customers. They also minimize stock levels in favor of customer service, take advantage of market trends, respond to advertising guidelines, etc.

ACCORDING TO THE OWNERSHIP OF THE WAREHOUSE

As each of these contractual figures legally stipulates, the logistics of construction, layout and provisioning of the warehouse will be conditioned to the possession of the square space for its use. 

This becomes very relevant at the time of layout or design, thinking about the necessary adaptations for the efficient operation of stocking and/or dispatch, and thus face the responsibility of growth, recognition and positioning of the brand .

How are Warehouses classified and what are their Logistics?

  1. Updated inventory 
  2. Reduction in returns 
  3. Automatic supply  
  4. Warehouse space 
  5. Optimized customer service 
  6. Production traceability
  7. Fewer selection errors  
  8. Optimized processes

Future Trends in Warehouse Logistics

The point is that the warehouse of our era has become a 'plus' in the global logistics chain. Its design and management mark an important gap between mediocre operations and the best, which represents a competitive opportunity for most companies, taking into account that from 2021 to 2025 e-commerce will grow by 96% in Latin America.

Automation, big data, artificial intelligence and blockchain are the new tools in logistics. Advanced warehouse management systems, known as WMS or SAG, which are already a powerful tool to meet the needs of a warehouse, also thinking about sustainability and social responsibility. The premise trends of recycling and good use of materials, green warehouses, and the most promising and pressing: ecological transportation

Autonomous vehicles, drone distribution, use of bicycles and Segways, confirm a whole system of inventory control, tracking information and all the logistics of an effective warehouse to do the only thing that needs to be done. The most important thing: Delivering orders correctly and on time. 

If you want an integral logistic service ABC Logística can be the ally for your business.

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