How Warehousing Is Important to Freight Forwarding

Whether you are looking to ship your vehicle within Canada or need help moving your personal effects, a reliable freight forwarding company can be your best friend. In fact, they do not just move your properties safely; they offer other perks such as cargo insurance, cargo tracking and warehouse storage. It does not even matter if you need these services all the time; simply keeping them in mind can help you for future reference.

Warehousing and freight forwarding are interconnected. Not only do warehouses keep your goods, including vehicles, in proper condition, they increase the reliability of the freight forwarding company as well.

Importance of Warehousing

Warehouses are spacious and well-protected buildings used for organized storage of goods.  Supply chain management for domestic as well as international trading is simplified thanks to warehousing. For a commercial shipper, the condition of your shipment is crucial as it impacts the value of your goods. Packing and warehousing ensure that your consignment is delivered in the best condition possible, whether your purpose is commercial or residential.

In general, warehousing is important to the six key stages of freight forwarding, which are:

  1. Export haulage, where goods are shipped from their original source to the shipping company’s warehouse.
  2. Export customs clearance, where the products receive clearance to leave the province or country of origin.
  3. Origin handling, where the unloading, checking and validation of the cargo is done.
  4. Import customs clearance, where authorities verify the customs paperwork.
  5. Destination handling, where the cargo is handled and transferred to the import warehouse.
  6. Import haulage, the final stage, where the cargo is delivered from the import warehouse to its destination.

Connection Between Warehousing and Freight Forwarding

In a global logistics management system, warehousing and warehouse management are essential components. Simply stated, warehouses store goods needing to be shipped. Over time, the importance of warehousing has become more prevalent in the supply chain. Even the responsibilities of warehouse operators have changed over time, from simply maintaining the quality of long-term storage of goods and products to supporting businesses and influencing the purchase, production and transport of goods. Thanks to this, businesses can now focus on developing time-oriented supply chain strategies.

Proper warehousing can impact cost reduction, service improvement and a more customer responsive attitude.

How warehousing can be valuable to the supply chain can be simplified into these points:

  • Products are stored to satisfy customer demands
  • Better product assortment means consumers can get their hands on a variety of products
  • The goods can be kept in one location until demand is better understood, thus allowing inventory to be reserved for specific orders (also known as inventory commitment), or postponed or delayed
  • Sequencing materials from multiple third-party logistics becomes easier
  • Some warehouses can provide light manufacturing, assembling and even knitting services.

Qualities of a Good Warehouse

There are many types of warehouses, each with its own distinct features. However, they are all considered good if they have these basic qualities:

  • Security and safety
  • Competent warehouse operators
  • Easy accessibility
  • Use of the latest technology and software
  • A well-designed interior
  • Organized picking, loading and storage
  • A thorough quality checking process
  • Quick customer response and prompt delivery system

Different Types of Warehouses

Warehousing is about more than simply storage, especially for e-commerce, small and medium-sized enterprises and freight forwarding companies. Even for individuals simply looking for vehicle shipping or property moving services, knowing about these things can help them choose a good shipping company.

For your convenience, here is a quick guide to the different types of warehouses necessary to freight forwarding.

1.      Raw Material and Component Warehouse

As the name suggests, this type of warehouses store raw materials that are later used in manufacturing or assembling a product.

2.      Work-in-Process Warehouse

Work-in-process warehouses store partially completed cargo. Here, you will find products at various stages of the manufacturing and assembling process. This is especially important for vehicles shipping to other locations or countries, as assembly is completed at the destination. Work-in-process warehouses permit the final assembly to be done on premises.

3.      Finished Goods Warehouse

The purpose of a finished goods warehouse is to store items or products in order to balance their demand. Finished goods warehouses are often used by makeup companies and fashion retailers to rejuvenate their inventory. For this reason, they are usually located near the place of manufacturing.

4.      Distribution Warehouse

When it comes to freight forwarding, these types of warehouses are vital as they let product accumulate so they can later be distributed to stores. Distribution warehouses are usually either located near the place of production or the customer base, to make product distribution easier.

5.      Fulfillment Warehouse

These types of warehouses are perhaps the smallest. Fulfillment warehouses receive, pick up and ship small orders for individual customers.

6.      Local Warehouse

A local warehouse shortens shipping distances so customers can obtain their shipment in good quality. A variety of products move through local warehouses, and shipping takes place almost daily.

7.      Value Added Service Warehouse

This type of warehouse is most suitable to provide vital customization services like packaging, marking, pricing and labelling.

8.      Climate-Controlled Warehouse

Products like plants, lumber and food that require special handling conditions, such as temperature or humidity control, need to be stored in climate-controlled warehouses.

9.      Bonded Warehouse

Bonded warehouses are where imported goods are stored before custom duties are applied. This is crucial in international shipping, and companies are bonded to protect them against monetary losses from products kept in storage. Companies do not need to pay any duties until the release of the item, and even restricted items can be stored in these warehouses.

With so many different types of warehouses and their different functions, warehousing is an essential part of cargo shipping and freight forwarding. Whether you own a small business or are an individual looking to ship a vehicle, you should know what type of storage your transportation provider offers. This will let you choose the best shipping company for your needs.