In simple terms, warehouse is the safe and secure storage facility where business owners can store their goods unless there is demand for the same. Warehouses safely preserve the goods and the business owners can take out the goods when the demand for the product exceeds the supply.
There are different kinds of warehouses available:
Third party warehouses are those which are used by business owners to outsource their warehousing needs. So, instead of having a warehouse within the office space, they outsource their warehousing needs to a third party. 3PL warehousing is a business solution which will address your storage, handling and transporting of your business’s products.
Public warehouses are the ones which include an expert business establishment which provides warehousing facilities to the common public in lieu of certain price
Private warehouses are the ones which are owned and operated by manufacturers and well established merchants to fulfill their storage needs on a regular basis.
Bonded warehouses are those which are licensed under the Government to admit imported products for storage till the custom duty is paid. These bonded warehouses are usually located near the ports and are operated by custom authorities and Government.
For the businesses, there are several benefits of outsourcing warehousing and logistics operation.
When a business outsources warehousing operations to a 3PL warehousing, it means the company is not in the business of warehousing in Sydney. Therefore, warehousing is not a core function of this specific company. Hence, it will not have to worry about the storage and other concerns. The business can simply focus on its own operations and leave the storage tasks to the third party.
Since, there is no storage within the company and is outsources, so the company will not have to employ additional staffs or resources for the maintenance of warehousing. Hence, the company can cut down on its employment costs.
Lesser staffs are required to manage the area of non-core operations. This implies that the company’s management’s time can be spent on driving the business growth and developing the business, instead of spending time on storing.
Third party warehousing professionals are trained in this field and it is their core function. Hence, they can benefit your business through professional services.
Third party warehousing often include the values and services of other warehouses services like freight transport services, picking and packing, dropping to consumers, inventory management expertise, etc.
Outsourcing logistics and inventory management will often be a process which will also uncover the process of improvement possibilities.
By outsourcing warehousing operations, there is no need for more storage space, which means there is no need for the employees to relocate.