Exploring 5 Types of Warehouses: A Comprehensive Ecommerce Guide

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Warehousing is an essential aspect of supply chain and logistics management. Thinking of a warehouse as only an ample space with products or materials is a common misconception. Even though this is part of its function, a warehouse is much more than that. With different types of warehouses, picking the right one depends on your specific needs. The cost, location, and capacity are only some of the factors to consider when selecting the correct warehouse. In this article, we reveal 5 types of warehouses so you can understand the difference between them and choose the right fit for your e-commerce business.

Fulfillment Center

A Fulfillment Center and a Warehouse aren’t the same. A Fulfillment Center manages orders, inventory, picking, packing, shipping, and returns. They are responsible for processing high volumes of orders and speedy delivery. They service different business sizes, providing growth potential and easy scaling. The Fulfillment Centers are ideal for e-commerce businesses looking for quick order fulfillment and want a scalable solution that grows with their company. The Fulfillment Centers are suitable for e-commerce businesses looking for quick order fulfillment and easy scaling.

Public warehouse

Public warehouses are affordable options for all those businesses that need flexibility. Their services include renting warehousing space for a short time. They provide essential services at low costs. The public warehouse is ideal for startups that don’t have enough funds to start their warehouse. In addition, they are suitable as complementary warehousing spaces for businesses with fluctuating inventory levels or seasonal goods.

FDA-certified warehouse 

This type of warehouse provides services for regulated products such as medical devices, drugs, and food. They ensure that the products are stored according to the FDA standards to ensure regulatory compliance. They are popular among food manufacturers pha, pharmaceutical companies, and other businesses dealing with FDA-regulated products.

Contract warehouses

Contract warehouses provide long-term contracts and additional customized services. However, it is essential to note that this isn’t the same with contract logistics. Contract warehouses offer a hassle-free experience for businesses. However, they might lack flexibility since they are a long-term commitment. They are suitable for large companies that want the advantages of private warehousing without having to manage and invest in their own facility. It is mainly used by medium-to-large enterprises that require custom services.

Cross docking warehouses

A cross-docking warehouse involves directly transferring the incoming goods into the outbound trucks to reduce the delivery time. This includes trim to no warehousing between the steps. With this, the shipping time is shortened, and the storage costs are decreased, which helps you achieve customer satisfaction. However, this type of warehouse requires thoughtful coordination and planning to get everything to its final destination. It is perfect for businesses that want to minimize shipping costs, reduce storage time, or work with perishable goods that require immediate transportation.

Final thoughts

Choosing the right warehouse requires a thoughtful approach and isn’t a one-size-fits-all solution. First, businesses should consider their size and need to find a feasible solution that supports their working operations. Perishable products are ideal candidates for cross-docking warehouses, while FDA-regulated products require special conditions. 

Warehousing supports the supply chain, so choosing the right type defines the speed and efficiency of order fulfillment. Overall, it has an impact on customer satisfaction. Choosing the right warehouse for your needs helps optimize the costs as well as reduce the shipping time, which your customers will appreciate.