What is a Warehousing Company?

July 01 , 2022 | CATEGORY : SERVICES

Warehousing is the process of storing purchased goods before being shipped to the desired destinations. Depending on the requirements of the business and the kind of products to be shipped, businesses can choose the type of warehousing, such as cold storage, hazmat warehousing, and retail warehousing. The other categories are private warehouses, public warehouses, and bonded warehouses.

The overall industrial and warehousing space stock in tier I cities was at 266 million square feet at the end of 2021 and is expected to reach 304 million square feet in 2022 and 345 million square feet in 2023.

Despite the challenges put forth by the pandemic over the past two years, the need for warehouses and warehousing services has continued to grow.


Importance of warehousing

Today, most businesses need and require some form of warehousing facilities, to store either raw materials or finished goods before they are shipped. Warehousing enables businesses to take advantage of supply chain and market opportunities faster and more efficiently, without adding to the operational costs. It helps them keep track of inventory, stock, status, and all other variables that contribute to the production or delivery of the finished product.

Warehousing offers several benefits to businesses, such as security, ease of transportation and movement of goods, climate control, inventory management software, and qualified personnel.

  • Optimized Location

Warehousing can help plan materials flow and distribution to customers in an optimum manner. Manufacturing companies can plan their warehouse locations to store raw materials close to their factories. Warehouses can also be strategically chosen near ports and transportation services so that goods can be easily shipped and received. For e-commerce and other retail companies that need fast delivery time, warehouses can be close to the demand centers.

  • Assembly and production

Some warehouses also take on specific requirements such as assembling prior to delivery. Based on the nature of the business, they are put in place with the equipment and tools to assemble and produce and this is done under expert supervision.

  • Customized Storage Space

Products received in the form of raw materials or finished products are not always immediately shipped or transferred to the production centers. They need to be stored in a safe and secure location, which is one of the services provided under warehousing. Warehousing can offer customized storage based on the type of material used, including specific needs such as temperature control, technology-led security and more.


Advantages of Warehousing Companies

Businesses today face stiff competition and look for every way to optimize operations to get an edge in the market, whether in terms of quality, price, or customer satisfaction. To gain this competitive edge, all parts of a business, right from raw materials, finished products, marketing, and financial management, need to blend seamlessly for success. Warehousing and the services offered by warehouses can become the cornerstone of the logistics business today.

  • Optimized manufacturing costs and flow of goods

To ensure seamless delivery of goods, optimal utilization of space is essential, apart from understanding the process for the effective movement of products. Businesses can rely on the services of warehousing companies to gain advantages. For example, manufacturing companies may be able to source raw materials at a lower cost and store them in warehouses located close to their manufacturing facilities, so as to reduce transportation costs.

  • Better customer satisfaction through fast delivery time

For retailers who rely on faster delivery time as a competitive edge, using warehouses located close to the demand centers allows them to offer products at faster delivery times. Warehouses also take care of reverse logistics, such as returns and replacements, which are essential for customer satisfaction.

  • Safe storage environment

When dealing with seasonal demand or managing the fluctuations of business due to various situations, warehouses can be a huge boon to companies with their offering to store products in a safe environment. For goods and products that require special storage conditions such as temperature or high security, warehouses can offer customized ways to ensure that these are stored appropriately.

  • Technological Advancements

Technological advancements have helped warehouses serve businesses better by using digital technology and inventory management, which helps in tracking and monitoring the inventory. It also manages planning, supply, demand, and fulfillment effectively including cost management.

  • Loan Facilitation

Hypothecation of goods is possible through warehouses, as sometimes organizations need to raise loans. This helps them raise working capital, if the need arises, against the security of goods in the warehouse.

  • Value Added Services

Warehousing companies also offer basic services, such as packaging and transit services. Given their expertise in these areas, products are safely and securely packaged to minimize any damage.


Warehouses have eased several problems for businesses and become a strategic lever for large, small, and medium-sized businesses. They keep the products safe and secure and allow businesses to focus on other aspects of their business. With business now going global and many adopting the digital bandwagon, warehousing sees the rise and is here to stay.