Shiprocket encyclopedia

What Is Warehousing?

Warehousing refers to the process of storing goods in the warehouse. Warehousing is the comprehensive set of activities involving the storage of inventory in a business.

A warehouse is basically a place that is built for storing some goods. Warehousing thus, means storing goods that will be further used for distribution and other activities.

For a small home based business, warehousing can be done in a spare room, while for a large and well-established business, a separate building or warehousing center might be required.

Many businesses that don’t have spaces to store products outsource these services and hire a third party warehousing service provider. The 3PL helps store goods and manages the process that follows for some fee. 

Warehouse vs. Distribution Center

People mostly use warehouse and distribution center interchangeably, however, technically, a warehouse provides only storage and a distribution center, on the other hand store products and also fulfill orders.

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