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Types of Warehouses

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● Types of Warehouses

● Distribution Warehouses

Warehouses performing distribution services on behalf of their customers. This generally requires that products be received and tracked by lot or sub-lot, with or without tracking numbers, such as pallet tags or serial numbers. Shipping is usually by the pallet or bulk unit. Handling and storage charges generally relate to the item with accessorial charges being billed by the transaction. On-going storage charges are generally billed ahead on the first of each month.

● Fulfillment / Consolidation Warehouses

Warehouses where products are generally received in large quantities and shipped out in a large number of smaller mixed shipments. Such pick and pack operations require special inventory management and picking procedures. Location tracking is essential. Billing methods are generally similar to distribution warehouses.

● Warehouses Providing Value Added Services

Warehouses providing a wide range of value added services. This requires the warehouse to apply labor and, in some cases, special equipment to the customer�s products, such as repackaging, further processing, or labeling. This not only changes the product but requires additional billings. Such services are generally performed along with other warehouse functions.

● Cross Docking & Trans-loading Warehouses

Warehouses that provide cross dock and trans-loading services. Container or railcar tracking is generally important. These services often require temporary storage with charges adjusted for free days or a grace period.

● Break Bulk Warehouses

Warehouses that receive product in bulk, often by railcar, and then repackage the product based on customer requirements. In the case of containers with imported products, this generally requires the inspection and relabeling of product. Generally, special billing rules apply.

● Storage Warehouses

Warehouses which store product for periodic delivery to a manufacturer or distribution center. This is often associated with providing just in time delivery of the product to the consignee. This could be imported raw materials or items used in the manufacturing process, such as cans or sub-assemblies. Items are generally tracked by lot, with the lot often being specified for delivery. Handling, storage and accessorial charges are similar to distribution warehouses.

● Refrigerated Warehouses

Refrigerated warehouses often require more detailed tracking of product and special billing procedures. Handling charges often involve a table of decreasing charges based on volume. Often each transaction is subject to a minimum charge. And, storage charges are generally billed based on anniversary dates.



Warehouse Types


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