Warehouse
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A warehouse is a facility utilized to store, protect and secure items for inventory or staging for shipment.[1] "Warehousing" refers to the process or methods employed for storing and retrieving inventory in a warehouse.
Warehouses have traditionally been staffed by an array of workers, but the modern warehouse may be either completely or totally automated depending upon how technologically advanced the company is.
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History
Warehouses have existed in some form or another for several centuries. The word “wares” is a Middle English term used to describe things possessed by a seller and to "house" these items simply means having a place to store these wares, hence the word "warehouse."[2] Warehousing's roots go back to the creation of granaries to store food, which was historically available for purchase during times of famine. As European explorers began to create shipping-trade routes with other nations, warehouses grew in importance for the storage of products and commodities from afar. Ports were the major location for warehouses.
With the westward expansion and development of railroad lines across the country, the need for storage locations became even more imminent. Rail depots became abundant as a means of storing goods along a train's route. The American Warehousemen's Association was formed in 1891 and sought to more evenly distribute ownership and control of these depots. Before this, the depots were owned solely by the railroad companies. The federal govenrment took a stronger role in this movement in 1906 when President Theodore Roosevelt passed the Hepburn Act. This act strengthened the Interstate Commerce Commission and placed more restrictions on railroads, allowing the commercial warehousing industry to grow and prosper.
Like nearly every other sector of material handling, warehousing was greatly impacted by the United States' involvement in World War II. The manufacturing boom created by the war effort led to the need for increased size of warehouses. The shortage of available work personnel also created a need for more automated methods of storing and retrieving materials. Since the 1940s, manufacturing has continued to increase, and with this increase has come more efficient and advanced methods of warehouse storage and management methods.[3]
The Modern Warehouse
The economic recession following the end of the "dot-com era" of the 1990s had a profound impact on the warehousing industry. Excess production and a decrease in consumption forced warehouses to develop new strategies and methods of storage and distribution. Among these was just-in-time (JIT) manufacturing - a manufacturing process that renders warehousing unnecessary because products are shipped directly from the manufacturer to the customer (end-user).
Today, warehousing companies are finding ways to transform themselves again. Warehouses often aim to be more than just storage facilities. Many have transformed their operations into third-party logistics providers, or "3PLs," which perform a wide variety of services for outside users. Many warehouses also now perform some of their own manufacturing and labeling, and operate as call centers or other non-storage service options.[3]
Warehousing Types
Warehouses are operated in one of several ways:
- Public warehousing involves the client paying a standard fee for the storage of merchandise.
- Private warehousing is storage and operations controlled completely by a single manufacturer.
- Leased warehousing is an option for more stable inventory.
- Contract warehousing clients pay fees regardless of whether they are using the space or not; the space is always there for them to use, however.
According to Overview of Warehousing in North America, contract warehousing accounts for more than 60 percent of the U.S. commercial market.
Warehouse Functions
The various possible functions of a warehouse include:
- The storage of goods to permit managing product flow or to accommodate longer production runs
- Serving as a mixing point where products from different suppliers are mixed and then distributed to fulfill customer orders
- A sales branch and customer service location
- A source of supplies for production
- A staging area for final packaging or finishing[3]
Common Warehousing Equipment
See Also
References
- http://www.mhia.org/learning/glossary
- http://www.wisegeek.com/what-is-a-warehouse.htm
- http://www.referenceforbusiness.com/management/Tr-Z/Warehousing-and-Warehouse-Management.html
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