The Types and Functions of a Warehouse

Warehouse is a vital part of a product supply chain that is required to be owned by every manufacturing company. Inside the warehouse, there are various stages of the production process.

Some of them are the collection of material, production, distribution, and handling raw materials and goods to become a product. As an important part of the supply chain, warehouses continue to face challenges such as increasing market demand and the need to shorten the time period between customer orders and the delivery of final products.

Hence, what are the types and functions of a warehouse? Check out the following review:

The Types of Warehouses

In the supply chain, there are various types of warehouses in which all depend on their role in the supply chain as follow:

  • Based on the stages in the supply chain, the warehouse is divided into several parts. This is needed to store raw materials, products in the process, and finished products
  • Based on its geographical area, warehouses are divided into national sheds to serve areas throughout a country's territory, regional warehouses to serve the entire world or several countries, and local warehouses to service certain regions
  • Based on type of the product, warehouses are available in many types such as warehouses for storing spare parts, warehouse assembly, food warehouses, easily damaged food warehouses, and warehouses storing dangerous goods
  • Based on its ownership, there is a self-managed warehouse owned by a manufacturing and warehouse company managed by a third-party logistic
  • Based on the equipment used in it, there is a warehouse that uses automatic operating machines and there is also a warehouse that uses manual power in it.

Although there are many types of warehouses, the main goal is to facilitate the movement of the supply chain to the end which is consumers.

Warehouse function

The functions of warehousing in general as part of a company's logistics system, functioning to store products and provide information related to the status and condition of materials and supplies stored in the warehouse.

Through this procedure, the company will always get the latest information from products that will be delivered to consumers. People who interested in will easily access this information for sustainable product development.

While in the context of the supply chain, warehouses are useful for the following:

  • Location of inventory storage
  • Center for consolidation
  • Product sorting center
  • Product assembly facilities
  • Location of shipping goods
  • Location of return of goods

The importance of a warehouse as an integral component of the supply chain makes the context of the business strategy must consider the existence and facilities in the warehouse. As a reason, this is very influential in the development of the company in producing products.

Well, that is all the things related to the types and functions of a warehouse. The industrial estate which has a variety of warehouses with a good management system in Indonesia is in the West Java industrial area, precisely in Karawang New Industry City (KNIC).

KNIC can also be considered as the location of manufacturing the warehouse of the company. This is due to its strategic position near 2 airports and the capital city. As a result, this strategic area is suitable for building businesses in both manufacturing and warehouse companies.

The basic concept of KNIC itself is a world-class integrated industrial city so that the presence of world-class infrastructure is clearly visible in this place. It not only aims to support the performance of a manufacturing company, but KNIC also presents to support the acceleration of regional economic growth and present a Multiplier Effect that is useful for socio-economic development in Karawang and other areas in the West Java region.

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