Often people tend to confuse Warehousing and logistics. Quite similar in nature, there is still a stark difference that makes them different. In simple terms, warehousing is the practice of storing the product so that it can easily be transported when an order is placed.
On the other hand, logistics is the process where products are collected, stored, and then transported to various zones. At the outset, you might think warehousing and fulfillment services are what provide the customers with the product; however that is not so.
Here are some basic differences between warehousing and logistics.
What is warehousing?
Warehousing is usually keeping your goods at one central location. For most new businesses, this is usually a small room or basement. There are, however, some companies that rent out the warehouse space.
However, big companies hire warehouse and distribution UK service providers. These companies handle all the work, like storing the products, checking them regularly, and arranging returns and pickups. Basically, warehousing’s functions include the following:
- Unloading goods and checking/receiving them
- Product storage and movement internally
- Picking up of the orders
- Sorting of the stock
- Rotation of the stock as per the requirement
- Packing of product and loading and shipping it further
- Replenishment of products as they go out of stock
- Taking care of returns, maintenance, and trying to minimize losses
What is logistics?
Logistics, on the other hand, is a more elaborate process. It involves the entire process of storing and distributing the products. You can call it the flow of products from the warehouse. Logistics & Distribution Services handle lots of tasks like:
- Inventory management
- Data integration
- Safety packaging
- Internal transfer
- Warehousing
- Transportation
In logistics, the inbound flow comprises movement of goods and raw materials to factories. The outbound flow of goods consists of coordinating the movement of finished goods to the customers.
Difference Between Warehousing And Logistics
Both warehousing and logistics are two essential parts of the supply chain management system. While warehousing caters to only one aspect of goods handling, Logistics is much more advanced. In fact, we can say that warehousing is a part of logistics, but the reverse is not true.
Apart from that, warehousing and logistics are interdependent on each other. For best results, both of them have to be in sync with each other. A planned schedule made in advance ensures that everything works smoothly in this case.
To maintain proper coordination, Storage and Distribution Companies have to schedule transportation and movement according to the worker’s availability. Unfortunately, even the smallest of errors or lack of coordination can disrupt the entire process.
By ensuring proper synchronization, you can cut down the costs of extra manpower, time-wasting, and extra raw material use. For example, if there is a staff shortage, you can mention a more extended delivery deadline to manage things better.
Summing up
As you can see, there is not much of a difference between Warehousing and logistics. You can consider them as both sides of the same coin. However, one thing we must all realize is that logistics comprises of many things and processes. Warehousing, on the other hand, remains limited to storing of the products.
In the end, for a business to work safely, both of them should work in tandem. A warehousing and logistics company handles both jobs quickly and gives your business better control. Hire a company that is into the field for a long time. With better experience, the company will take away the burden of handling your business transportation and storage. They will have the expertise to simplify and synchronize your warehousing and logistics for better results.
