Rogers AR Storage: Types of Warehouses

Understanding what types of warehouses are is crucial for anyone working in logistics or simply wanting to own one for storing. After all, adequate storage is one of the sector’s elementary tasks. It is necessary to correctly manage space, control stock, and store raw materials, products, and other items so that they are available when needed for the company’s activities. The different types of warehouses are capable of offering varied possibilities to meet the needs of physical space, access, and work dynamics of each business like Rogers AR Storage. The choice depends on the model that best suits the reality and the demands of the enterprise.

To help you make a more informed decision and avoid excessive costs, in this post we will explain the details about each type and its uses. 

Types of storage warehouses

• Individual

As the name implies, this type is characterized when the location is managed by the company that owns the stored goods. In this case, the company is responsible for managing the space, defining processes, hiring employees to maintain control and security, and performing all activities related to warehouse maintenance.

This means that there may be higher labor costs – including the need for staff training – and expenses for the management of the warehouse. However, this choice also has benefits, such as greater operational control, freedom to change space, flexibility for strategic adjustments, and the possibility to design the facilities to meet the company’s specific material handling needs.

To have its warehouse, the company does not necessarily need to allocate space on the premises of the head office or industrial area. Sometimes, depending on the business, it may be more interesting to install the facility in a location that allows easy access to roads and can optimize cargo transportation, for example.

Some managers choose to have storage centers even in other cities to facilitate logistics. It is common for this type to be used by industries and large companies in various sectors, such as automotive, metalworking, furniture, electronics, and food, among others.

Before choosing this option, it is necessary to analyze how much will be spent with the warehouse or shed. One must take into account the expenses with personnel, in the case of an own warehouse, and make comparisons with the values offered by the other available alternatives.

At the same time that having its warehouse can bring more projection in the market where the company operates, the rate of return is not always compensatory, since the organization generates one more activity, instead of dedicating itself to its main occupation.

• Public

There are also public warehouses, which include general, furniture, commodities, customs, and refrigerated warehouses, for example. These places are specialized and charge handling and storage fees, which are usually based on the weight or cubage of the goods.

Bonded warehouses, for example, are government-authorized warehouses where companies can store imported or export products until they are released, upon payment of customs duties.

The great advantage of this model is that it has the necessary specifications for each type of stored material: food and medicines that need refrigeration, grains, large volumes, etc.

Furthermore, the costs can also be lower, depending on the type of business and the frequency and time the company will need to use the warehouse.

• Outsourced

Another way to store goods is by outsourcing. In this case, the organization passes the responsibilities to a contracted company, which will manage the warehouse.

This model is good for companies that do not want to worry about warehouse management, since the location is rented and the demands are met by the outsourcer. With this, there may be a reduction in expenses, since there is no need to hire or train employees.

Outsourcing is an option much sought after by small businessmen and also by larger companies, such as those in the agricultural industry, which seek to avoid waste, losses, and damage to their products.

While it is a good alternative for organizations that want to focus on their core activities, the downside of outsourcing is that companies do not have the freedom to adapt storage processes or do inventory control on their way.

• Contracted

Finally, there are the contract warehouses, which mix characteristics of the previous types. In this case, the company uses a warehouse space that is not its own, but its employees are responsible for taking care of the logistic processes.

This can make the final costs higher since there are expenses with both renting the place and hiring staff. However, this is an interesting alternative for those who already have a specialized team and only need storage space.

Many people tend to confuse the outsourced and hired models. The main difference between them is that, in outsourcing, the whole process is done by another company; in contracting, only the physical space is rented for storage.

In any case, each type of warehouse has its advantages and disadvantages. The best choice depends on the demands and needs of each business. Simply, it is necessary to analyze a series of factors before deciding, such as costs, layout, amplitude, and location, among others.

To do so, consider the company’s annual budget and evaluate what will be stored. Think about the space that will be needed, how the goods should be allocated, how they will be handled, the costs involved, and the proximity to the factory or the organization’s strategic points, among others.

Having more information about the different types of warehouses can make it easier to make a good choice and allow more efficient risk management. Remember, however, that it is important that the space meets the demands of the organization and allows the maintenance of the quality of the services provided. The costs must also fit the reality of the enterprise.

Rogers AR Storage is a public warehouse type. Although, they specify in the storage of vehicles like boats, RVs, and trailers, unlike the logistic warehouses that are mainly business-focused. Anyone who needs a warehouse can Rogers AR Storage through the contact information available on their website.