Storage vs. warehousing. Learn the difference!

On the surface, it might seem that warehousing and storage are the same activity, differing only in name. Although both are about goods and their storage, the activities are very different. So when is it storage and when is it warehousing?

At the outset, it is worth recalling the definitions of the two activities. Warehousing is the placement of goods in a warehouse, in conditions adapted to its needs. Warehousing, on the other hand, is the entire process of storing an assortment, from its reception into the warehouse to its release for further transport. More importantly, storage is one of the four stages of warehousing.

Storage stages

The efficient process of storing goods is based on four essential phases, with the start of the next phase possible only after the previous one has been implemented. Prominent among these are:

• Receiving goods - is the first stage of warehousing. It consists of receiving the goods onto the storage area, verifying them, unloading them and preparing and transferring the delivery to storage.
• Storage of goods - In this phase, the received goods are placed in a "storage area" in a specific configuration - they are sorted and arranged accordingly. Here, the goods are only temporarily stored. An important role of the storage area is to provide the assortment with the right conditions, such as space, light or temperature. It is important that all articles stored here are inspected and maintained from time to time.
• Goods picking - From the storage area, a number of goods are transferred to the picking area (the quantity of goods depends on the requirements of the person who ordered them). Here - as the name suggests - orders for future recipients are completed and prepared for further transport.
• Issue of goods - the final stage is the release of the goods, i.e. the final verification of the goods and their loading onto the means of transport that will deliver them directly to the customer.

So, as can be seen, storage is a very important part of the overall storage process. The most important difference between the activities is time. The former remains a temporary activity, its role will only be to prepare the goods for their further journey. Warehousing, on the other hand, is a long-term activity that consists of many procedures. The InPost Fulfillment service, a comprehensive order handling service, is dedicated to online shop owners. Warehousing is one of the responsibilities that we can take care of. Want to find out more and use the InPost Fulfillment service? Fill in the form"

Storage functions

It can be said that the main role of warehousing is stock creation, as this separate zone contains goods awaiting sale. Other functions are: maintenance of stock, consolidation and deconsolidation of loads and packaging.

Maintaining stock is paramount in all of this. With a changing market and seasonal shifts in demand for specific items, stocks are essential for a business to run smoothly. They ensure that goods do not run out at the least opportune moment. In addition, an accumulated assortment will smooth out the time and quantity differences that occur between production and sales.

The option of storage, i.e. the creation of stock, is primarily used by companies that sell mass-produced goods. Purchasing an assortment in larger quantities will prove to be much more cost-effective, so it is worth having somewhere to store it. This will not only save money, but also time. And the goods can wait safely in the storage area until they are on their way out.

Cargo consolidation involves combining smaller consignments into one large package. This is advantageous, especially when it comes to the cost of transport. Such parcels are often referred to as part-container or general cargo. Cargo deconsolidation, on the other hand, is the opposite activity - it involves splitting large shipments and making them into smaller ones so that only the amount of goods that the customer actually needs is sent.

Goods packaging involves sorting, packing and labelling according to customer preferences. Most of this is done manually, but larger companies often use automated machinery for this purpose, enabling faster preparation of goods.

What should be borne in mind?

The storage and warehousing of goods is a key process that enables your business to grow continuously and smoothly. It is worth remembering that it is mainly there that the assortment we distribute will reside. Therefore, the storage room must be adequately prepared for storing the goods. First of all, it is necessary to determine the nature of the goods to be traded - whether it is a commodity that needs special conditions (e.g. foodstuffs) or whether the storage process will not have to meet specific criteria.

Another important consideration is the quantity of goods to be stored. This not only determines the choice of room (size and location), but also the technical equipment that will improve the warehouse operations. So before you decide to develop your business, think carefully about what you actually want to trade and whether your magazine fulfils all the necessary functions.