The importance of storage in the logistics chain

The logistics chain is a complex process involving a series of stages which must run perfectly smoothly to ensure that the goods arrive at their destination fast and safely. One of those stages is storage, which plays an essential part in the distribution process.

Storage isn’t only about looking after goods, here are some of the aspects involved in a good warehousing service:

  • Goods reception.
  • Safekeeping the goods, making them easy to access and handle.
  • Maintenance: Managing products, their safety and preservation.
  • Inventory of the cargo and available stock.
  • Transport: Managing preparation, packaging and shipment to the destination.

Storage plays a vital part in the supply chain given that it helps to guarantee good delivery times and reduce warehouse losses, making it possible to offer better services, to occupy a position ahead of competitors and, ultimately, to increase profits.

Having a good storage system is therefore vital for expanding a business. Hence the importance of knowing the different kinds of logistic storage in order to be able to choose one suited to the specific needs of each business and its target market.

Storage by location

Internal or covered storage
This type of storage offers greater protection as it enables the control of climatic variables such as lighting, temperature or humidity in order to maintain the integrity of the goods.

External storage
This, on the other hand, is outdoor storage where it is impossible to control environmental factors, making it ideal for loads that won’t be affected by the weather. What it does offer however, is surveillance of the goods in areas generally installed in places closed off with security fences, railings or flexi-barriers.

Storage by function in the logistics chain

Central storage
This kind of storage is located near the production plant, aiming to keep the cost of goods transport to a minimum. It usually stores most of the stock and distributes it to the different regional warehouses if these exist.

Regional storage
This kind of storage has a strategic location guaranteeing distribution of the product in the shortest possible time. These are warehouses organised to receive large quantities of goods coming from the production plants on lorries.

Storage in transit
These are warehouses located mid-way between the regional warehouse and the point of sale. Here the idea is that the transport time is no more than 24 hours. These are fast-moving warehouses, prepared to hold the goods for a short time and with a high turnover.

Temporary storage
These are spaces conditioned for a limited amount of time to meet stock needs in the event of specific demand.

Free warehouse
This is the name given to the storage space for goods coming from imports or exports. The free warehouse offers a number of tax benefits, given that the cargo is not subject to import duties or internal revenue. The goods stored here are tax free both on entering and leaving the depot.

Customised storage

However, the most important thing is to choose the kind of storage suited to each company and product. And with it, a team of workers who know how to get the most out of the facilities and have experience in handling each type of goods.

At Bilogistik we know the importance of storage as a strategy to optimise supply chains. We therefore offer storage solutions tailored to the customer’s needs. We are experts in providing advice and offering the best storage solution based on the characteristics of the goods and the budget, all focussed on achieving the highest returns for the customer.

At Bilogistik we also have our own external storage for receiving your goods and keeping them safe until their shipment date. We also offer a Free Warehouse service, both of which can function as a customs warehouse (DA) offering duty-free storage, and also as an other than customs warehouse (DDA), i.e. for storing imported goods within the EU with no need to pay advanced VAT or complete customs procedures.

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