Frachtbox team

Location and importance of storage in logistics

Published 01 Dec 2021

Location and importance of storage in logistics

Location and importance of storage in logistics

In our articles, we often talk about the supply chain and the importance of supply chain management. Without a doubt, one of the most important links in this chain is storage; we have already talked about storage optimization. This time we decided to take a look at warehousing itself, its processes and the importance of the warehouse management system in the supply chain. We wish you a good read.


To store

In logistics, warehousing or storage is one of the three main processes (TUL processes) alongside transport and transhipment. Goods are stored in the warehouse if they are needed at a later point in time. Storage is therefore also referred to as “bridging time”. When transporting goods, however, they are required at a different location.

The selection of the storage location is one of the decisive aspects when setting up a warehouse. This factor influences not only structural aspects, but above all strategic aspects - this goes so far that it can be decisive for the success or failure of a business.


Warehouse logistics

The choice of location of the warehouse, the design of the ideal warehouse system, the warehouse technology and the warehouse organization consist of logistical measures that have to be planned, implemented and controlled. The operation of a warehouse is also part of warehouse logistics.


What is the difference between a warehouse and a distribution centre?

The shorter the usage time of this central (DC) usage, the longer the storage period. In short, it turns out to be a transit centre. Warehousing mainly includes checking, receiving, placing, counting, collecting, checking and sending. However, this difference can now be observed in everyday life on the street.


Storage methods

What are the most common storage methods?

Two types of rules can be highlighted:

Fixed or specific storage methods: Each stored SKU is assigned a specific position beforehand. This enables the localization of products without a computer system having to record them.

Chaotic or random storage methods: Products are placed in the available positions as soon as they arrive in the warehouse. A warehouse management system is essential for a successful implementation.

In many storage facilities, however, storage methods are combined for goods organization.