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  • Different Methods Used by Logistics Industry to Store Goods

Different Methods Used by Logistics Industry to Store Goods

Brendan Berksaw July 20, 2023 3 min read
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Most of the time, when we buy goods or products online, we don’t spend any time considering where the products are or how they reach us. It comes as quite a surprise to many people to learn that their beloved products might spend years somewhere in a warehouse, with the boxes collecting dust until it is ordered.

If you are curious to learn about the different methods that the logistics industry uses to store goods, this article will go over some of the most common methods that are used by the industry today.

Table of Contents

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  • Warehouses
  • Cold Storage
  • Shelving Systems
  • Distribution Centers
  • Bulk Storage
  • Inventory Management Systems

Warehouses

The first method that the logistics industry uses to store goods, and the most widely used, is warehouses. Warehouses are essentially buildings that have been designed with the specific goal of storing goods. These warehouses typically use various systems, such as storage units, shelves, and warehouse racking, to store goods.

Some warehouses are relatively simple and only store one kind of product across the entire warehouse. Some warehouses, on the other hand, might have many different storage areas that house a variety of products and are separated by factors like temperature requirements, size, and product type, similar to those of TakeAlot.

Cold Storage

Another method used to storm goods by the logistics industry is called storage facilities. These facilities are more specialized since they deal with a specific type of product, more specifically, perishable items that require temperature control.

A few examples of products that might require temperature control include pharmaceuticals or food. These facilities make use of temperature-controlling technology, such as freezers or cooling systems, to ensure that the temperature is accurate. This is necessary to ensure the freshness and quality of the products.

Shelving Systems

One of the more common methods that the logistics industry uses to store goods is shelving systems. Industrial storage equipment, such as warehouse racking or pallets, are the most commonly used method in the industry.

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Pallets are great for storing products since it allows the products to be moved quickly using pallet jacks or forklifts. Shelving systems allow warehouses to maximize the use of their space since products can be stored vertically using multiple levels. Warehouses that use shelving systems typically have high ceilings so that the maximum vertical space can be made use of.

Distribution Centers

The heart of the logistics industry is distribution centers, which is another method that the industry uses to store products. Distribution centers are basically the middle point between the main storage facility and the customer and only house products temporarily.

Basically, these centers act as a middleman; they receive the products from the suppliers, which are then sorted and then finally dispatched to where they need to go. The storage methods used by distribution centers are determined by the types of products that the center handles. Food or pharmaceutical products would use cold storage, whereas other products would be stored using shelving systems or storage units.

Bulk Storage

Bulk storage is another very common method that the logistics industry uses to store products. Bulk storage is similar to the storage used by warehouses, except the products that are stored using bulk storage typically are strong or not prone to being damaged very easily.

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As such, the storage methods used for bulk storage are quite simple. Typically these products would be stored in tanks, silos, or bulk storage bins. Most of these products would be stored on the floor rather than on shelves or in warehouse racking. Products that are stored in bulk storage facilities typically are things like chemicals, liquids, or grains.

Inventory Management Systems

Finally, the last method that the logistics industry uses to store products or inventory management systems. If distribution centers are the heart of the logistics industry, the management systems are the skeleton. Without inventory management systems, products would get lost, and warehouses wouldn’t be able to track what products are being stored and for who.

In other words, inventory management systems use technology such as radio frequency identification, barcode scanning, or even automated storage and retrieval systems to keep an eye on what products are being stored, how many, for who, where they are located, and more. These systems are crucial to keeping storage facilities organized and flowing smoothly.

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