What’s a Warehouse?

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A warehouse is a large building for storing and shipping goods. Modern warehouses can be automated, and some companies have huge storage facilities. Big box stores are like mini-warehouses, offering lower prices by stocking more merchandise. Manufacturers’ storage facilities may offer reduced prices for direct purchases.

A warehouse is a large building where goods are stored and where they can be catalogued, shipped or received, depending on their type. While in the past many warehouses, often located in industrial areas sometimes near major shipping ports, were teeming with workers, the modern warehouse can be fully or fully automated as the business evolves. Sometimes a manufacturing facility also has an attached warehouse, where their manufactured goods are stored until they are shipped.

Warehouses have been around for several centuries, and the word itself is not difficult to understand. “Goods” were the things a vendor owned, and housing them in a central location meant you had to store your wares. Typically, however, modern warehouses can store not just the goods of a single vendor or manufacturer, but a myriad of different products. The main operation of the place is receiving, getting new products and shipping already stored products. Another important part of maintaining a good warehouse is maintaining inventory of what products are currently in stock, what has been shipped, and what has been received. This process is again largely automated.

Some companies benefit from huge storage facilities. For example, if you order something from some of the biggest companies online, you’re typically asking them to get you a product that exists in a huge warehouse. Amazon.com maintains several huge warehouses dedicated to different products. Another modern twist on the warehouse is Big Box stores, actual commercial buildings, like Costco. These can be called warehouse warehouses and look like mini versions of larger warehouses.

Such stores tend to have concrete floors and tall metal shelves with products sold in bulk. Instead of spending a lot of money on attractive merchandise and displays, these stores are able to stock more merchandise and can offer consumers much lower prices since they order so much more. However, such stores may also have warehouses from which they source supplies, or they may need to order supplies from other companies that operate warehouses.

If you live near a manufacturer’s storage facility, you may be able to purchase items at reduced prices. For example, a bakery may produce everything they have on-site and have an on-site storage facility, from which they are shipped. When you go directly to the storage source, particularly when goods are manufactured there as well, you can usually buy stuff for less because the company doesn’t have to pay anything to ship or market the product elsewhere.




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