Freight Warehousing

What is Freight Warehousing?

Freight warehousing is the process of storing freight in a warehouse for later distribution. These warehouses are dedicated to freight; while orders may be broken down into separate units later during order picking and distribution, they treat each good as large packages.

There are three types of freight warehouses: public, private, and distribution centers.

• Public warehouses are operated by third-party logistics providers (3PLs) and are located near transportation hubs, like ports. They can be used by any company to store their goods, making them perfect for companies who need to move their freight quickly through distribution.
• Private warehouses are run by individual companies and are usually located near the company’s manufacturing plants. They are perfect for companies that store raw materials and supplies and can be customized for each company’s specific needs.
• Distribution centers are warehouses that also function as fulfillment facilities to package and distribute goods directly to retailers and customers. They are also located near transportation hubs like public warehouses and are perfect for companies juggling complex inventories.

In addition, warehouses can be classified by how long inventories are held. Short-term warehouses only keep products for a set period, while long-term warehouses can store products for as long as a company needs until a distribution plan is implemented.

Businesses use their freight warehouses as a transportation hub, a large storage unit, and a fulfillment center (sometimes). Warehouse staff have many duties to complete. They must:

• Receive goods from manufacturers
• Store goods in the facility
• Manage inventory levels
• Pick orders out for distribution
• Package items according to company standards
• Distribute items to fulfillment centers or straight to customers
• Manage returns from customers

Specialized equipment, such as forklifts, pallet jacks, and conveyor systems, is required to transfer goods around the warehouses, which must be spacious enough for inbound and outbound deliveries. They also need systems to manage inventory levels and track items throughout the facility, using software that tracks orders via a tracking number.

Advancements in technology have improved efficiency in warehouses, including automated tracking systems for distributed orders, robotics for finding and picking orders, and warehouse management systems that find and control inventory levels. These advancements reduce costs, eliminate manual labor, increase efficiency, and quicken delivery times.

Why is Freight Warehousing Important?

Freight warehousing is a worthwhile investment for freight companies who need time in the manufacturing and distribution stages of the supply chain.

• Inventory Management: Companies can use warehouses to track their product quantities, using advanced systems as a tool for inventory levels.
• Distribution Planning: Companies can store products for a set time while awaiting seasonal demand changes, unexpected demand spikes, or determining their distribution plans if they aren’t immediately sending freight.
• Customer Satisfaction: By using warehouses as storage and fulfillment centers, delivery times are faster, ensuring products arrive at their final destination punctually and safely while improving customer service via defined return policies.

FreightCenter Can Help You With Freight Warehousing

FreightCenter offers dedicated warehousing and distribution services through our carrier partners, which are the perfect size, in the right place, and for the right time. You won’t pay for space you don’t need; we’ll find you the perfect fit! Let us help diagnose your warehousing and distribution challenges, develop inventory management solutions, and then make those solutions work where it matters – out there in the real world.

If you want us to help you optimize your warehousing game, call us at (800) 716-7608, or try our free online quote tool to start shipping with us today!