As the e-commerce business is becoming more and more mainstream in India, merchants now need to consider where this growing inventory will be kept. When it comes to a company’s product fulfillment and shipping logistics, the topic of warehousing is bound to come up.

While many think that warehouses are just a dreary large facility with a stack of huge boxes of stored goods, the reality is far beyond their imagination. Today, warehouses in India are well-maintained and have become bustling hubs for product fulfillment and inventory management. On that note, let’s check out some different types of warehouses in India and understand what are they used for?

Types Of Warehouses in India

1. Public Warehouses

Public warehouses, also known as third-party storage facilities, provide handling and storage services to a range of companies and individuals at affordable rates . Unlike private warehouses, which are owned and operated by a single company for their own purposes, these warehouses offer shared storage space and services to foster the needs of different clients.

Moreover, these facilities are generally outfitted with good infrastructure and expertise to handle a diverse range of items, and they may provide services such as inventory management, order fulfillment, transportation, and more.

Public warehouses are commonly used by those startups or small businesses that are looking for flexibility and cost-effective storage options without the commitment of owning and operating their own warehouse.

• Public warehouses are more affordable

• They are great for seasonal businesses

• Ideal for short-term storage

• Used by many e-commerce companies and startups

2. Private Warehouses

While a public warehouse is owned by a third-party or a government body, private warehouses are managed by a firm division. If a company wants to lease a private warehouse, they have to make quite an upfront expenditure to secure the property, manage the amenities, and carry out basic maintenance and upkeep.

Private warehouses have become prevalent among wholesalers, distributors, and manufacturers. Such spaces are more expensive than a public warehouse, but they give company owners more control over their inventory management.

• Enhanced security and control over inventory management.

• Great for companies that need a long-term presence in a specific sector

• Provide an exclusive location for business operations.

• Flexibility in scaling storage capacity according to fluctuating demands.

3. Cold Storage Warehouses

Cold-storage warehouses are specialized facilities designed to store temperature-sensitive goods such as perishable foods, pharmaceuticals, and other delicate items. These warehouses maintain regulated low temperatures, often ranging from below freezing to just above refrigeration levels, in order to protect the quality and shelf life of the stored items. They play an important role in the supply chain by keeping products fresh and viable until they reach their final destination.

Many big food chains across the world utilized such warehouses to ensure the integrity and safety of perishable items throughout the distribution process, whether that means keeping fruits and vegetables crisp or meats and seafood frozen.

• Maintains product quality and extends shelf life for perishable items.

• Preserves nutritional value and taste of frozen foods and fresh produce.

• Commonly used by restaurants and pharmaceutical companies.

4. Smart Warehouses

These warehouses are gaining immense popularity in modern times as they leverage latest technologies to improve overall operations efficiency, accuracy, safety, and sustainability. In smart warehouses, the storage and fulfillment processes are automated using artificial intelligence such as robots and drones.

These robots pack, weigh, transport, and store raw materials without any human intervention. One of the key features of smart warehouses is using IoT devices like sensors, RFID tags, and beacons to collect inventory data in real time. This data is analyzed in order to enhance warehouse operations, reduce waste, and make better decisions.

Smart warehouses additionally maximize the use of automated technology to increase the speed and accuracy of their operations.

• Optimizes inventory management through real-time tracking and automation, reducing stockouts and overstocking.

• Minimizes costs associated with errors, delays, and inefficiencies in warehouse operations.

• Enhanced safety and security within the facility.

• Reduces energy consumption and environmental impact through smart energy management systems.

5. Cross-Docking and Transloading Centers

These centers are dedicated to the easy transfer of goods from one mode of transportation to another. Cross docking and transloading centers are ideal for companies trying to cut expenses associated with maintaining goods and optimize their supply chains as they save storage time.

In order to minimize storage time, items are swiftly cleared from the coming trucks and loaded into departing trucks at cross-docking facilities, which act as transfer hubs. Transloading centers, on the other hand, help move goods between various transportation modes; they frequently link trucks, trains, and shipping vessels.

• Streamlines supply chain operations by reducing inventory holding time.

• Facilitates faster transit times for goods between transportation modes.
• Supports sustainability goals by reducing fuel consumption and emissions.

6. Bonded Warehouses 

Imported commodities are kept in bonded warehouses until customs procedures are finished and money is received for the goods. Bonded warehouses provide a safe space for these goods in the meantime as the custom clearance procedure is quite lengthy.

Government agencies provide a bond to rent the space so that the companies don’t suffer losses once products are ordered. Bonded warehouses would be appealing to importers who may require either long-term or short-term storage for goods that are often prohibited.

• Companies don’t need to pay duties until items are released from storage.

• Ideal for companies or businesses that deal with cross-border training.
• Allows for processing, packaging, or labeling of goods while in storage.

7. Hazmat Warehouses

These warehouses are used to store and handle hazardous materials such as flammable liquids, toxic chemicals and corrosive substances safely and securely.  Strict rules and safety regulations are followed in hazmat warehouses to avoid mishaps, spills, and any harm to the environment.

To reduce dangers and guarantee adherence to these norms, such facilities are outfitted with specialized storage containers, ventilation systems, fire suppression measures, and skilled staff.

Hazmat warehouses are relatively expensive to operate due to their specialized construction and facilities.

• Equipped with specialized storage containers and ventilation systems.

• Reduces liability and legal risks for businesses handling hazardous materials.

• Provides trained personnel to manage hazardous materials effectively.

8. Distribution Centers

Distribution centers are designed to receive, store, and distribute goods to multiple locations. These centers are different from fulfillment centers, which are typically operated by third-party logistic companies rather than a single firm.

Products stored in distribution centers are moved around quickly within the supply chain. These spaces  are used as a central location for suppliers, manufacturers, and retailers to exchange goods.

• Cost-effective options for companies selling to wholesalers.

• Ideal for inventory management.

• Less money is wasted on long-term storage of products.

What To Consider When Choosing Warehouses in India? 

Now that you have discovered the different types of warehouses and their uses, it’s time to think about the small aspects that contribute to a warehouse being a suitable place to store your goods and products. Before choosing any warehouse in India, there are several factors that you need to consider to make an informed decision.

Having said that, here is the list of some of the significant factors that you should keep in mind while choosing a storage facility.

• Equipped with the latest mechanical systems with updated software.

• Adequate security

• Up-to-date procedures for emergencies and safety purposes

• Enough storage space for quick Customer Service and On-Time Delivery

• Appropriate temperature controls (in case cold storage is required)