There are many things to consider when thinking about the storage, handling, and consolidating of goods.
From rent and property taxes to highway accessibility, traffic volume, and driving distance from/to railways, seaports, and airports; from workforce availability, and labor skills to the physical building infrastructure, type, availability, and utility costs; there are endless conversations about this subject.
To start, let's take a look a the different types of warehouses. Then, let's talk about some of the most critical security recommendations for a warehouse property.
Common Types of Warehouses
Public Warehouse
These types of facilities are available for companies with short-term warehousing needs. Here, a company can rent a space for a short time, maybe as additional storage space.
A public warehouse is a great alternative to consider when a new market is being approached, when there is a new product introduction, or the company is selling a seasonal item.
Private Warehouse
Also known as proprietary warehousing could be the property of a large corporation or a company that offers storage services. Upfront capital investment is needed to build and maintain a private warehouse.
Private warehouse locations are on-site (close to the manufacturing location) or off-site. Its location depends on the company's distribution strategies.
Climate-Controlled Warehouse
Also known as Temperature-Controlled warehouses, it is where perishable goods are stored. These facilities can provide humidity-controlled environments, refrigerated, and low-temperature ranges. The temperature range allows the proper store of flowers, produce, fresh meats, and frozen foods.
A climate-controlled facility allows you to keep any perishables in a safe environment and are an essential link in cold supply chains. It is vital to consider using a temperature-controlled facility when transferring or consolidating fresh produce and foods, as well as chilled and frozen commodities.
Bonded Warehouse
Warehouses can be Bonded or Non-Bonded; what differentiates them is the facility's connection with Customs.
According to the U.S Customs and Border Protection, a Customs Bonded warehouse is "a building or other secured area in which imported dutiable merchandise may be stored, manipulated, or undergo manufacturing operations without payment of duty for up to 5 years from the date of importation".
This category of warehouses can be owned by the government or by a private entity.
A private storage facility can become a Customs Bonded Warehouse. The warehouse operator must go thru a certification process with U.S. Customs. One condition is to allocate a particular area that will only be used for storing imported goods. Additionally, the storage facility will be asked to demonstrate operational and financial integrity. To maintain the Customs Bonded certification, they must agree to occasional Customs supervision, including many other requirements.
There are 11 classifications of Customs Bonded warehouses; to learn more about this, click here.
Distribution Center
A distribution warehouse is a place where products remain stored before selling them to retailers. These types of warehouses hold large quantities of goods, sometimes for a short period. Multiple manufacturers can use distribution centers to keep their inventory.
A distribution center is a vital part of every supply chain. It's essential to set it up correctly. With a smoothly run supply chain, you'll serve a high volume of customers better.
Fulfillment Center
It is a third-party (3PL) warehouse provider. A fulfillment center handles the warehousing, order processing, picking, packing, and shipping for eCommerce partners. This type of warehouse stores the inventory, and when a customer places an order, they ship it.
Automated Warehouse
Automated warehouses use technology and sophisticated software to operate in a highly efficient, fast, and agile fashion. With modern equipment and a well-equipped location, their operation runs smoothly.
There are many hybrid storage facilities, which can better serve their customers by -for example- combining dry and refrigerated spaces in the same location, or serving as a storage/distribution facility with automated technology for highly efficient handling of goods.
Security Recommendations
Security in a warehouse property is an essential aspect of a commercial business.
Around the world, companies with physical products and consumables use warehouse space to provide safe storage for valuable components of their business.
Security problems could result in financial losses of significant proportions if security measures and systems are not in place.
Physical restrictions and security barriers are a must to protect a warehouse against unauthorized access.
1. Alarm Systems + Video Surveillance Cameras
Here, you have 2 essential elements of security to have in a storage facility.
When it comes to storage spaces, cameras can provide a comprehensive view of activities while recording digital footage for an extended period. Real-time recording is a benefit that supports wider visibility (a real challenge in global supply chains) if multiple locations can be observed concurrently.
Alarm systems can be adjusted to almost any business need. Some alarm systems can trigger alerts based on movement detection, and a notification is sent to a mobile device. Others are more sophisticated and provide external monitoring services connected with a control center to connect to the region's security authorities.
Both of these elements can help to document events and, if it is needed later, investigate previous incidents.
2. Building Structure
Using resistant materials is critical to prevent break-ins, as well as to provide protection from weather conditions. Periodic inspections, appropriate maintenance, and repairs are strongly recommended to keep the warehouse structure in optimal conditions.
A proper building structure that follows safety regulations and keeps up-to-date maintenance provides a safe location to store goods, and it is a secure place for the workforce to operate the equipment.
3. Critical Facility Protection Systems
Hazardous gas detection systems, fire alarm, and fire suppression systems, to name a few, must be secured, periodically tested, and regularly monitored to avoid unapproved shut-downs or intentional tampering.
It is highly recommended to contact an approved professional to verify these protection systems' proper functionality.
4. Fencing & Lighting
Storage facilities perimeter, including its yard, should be enclosed with proper fencing. Keeping an entry log is also recommended to document all individuals accessing the property. There are sophisticated access control systems that support integration to other security systems, providing optimum results.
Lighting provides a better vision of areas, in-person and through the camera systems. For that reason, proper lighting is highly recommended for all access points (doorways, gates, ramps, hallways, storage areas, fences, and parking lots.
Wrapping Up
Before choosing a facility, consider your company's short and long term warehousing and distribution needs. As demands grow, you can move from one facility to another.
Security is an important protection element. Check if the security systems in the warehouse facility you are choosing are up-to-date, or how much you will need to invest in making your storage facility a safe place to keep goods.
Stay tuned! In the next post, we will address safety and equipment recommendations and how warehouse regulations and taxes can help your company reduce expenses.
Thank you for reading āļø!
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