Difference between Storage and Warehousing

Key Difference: Storage refers to the action or method of stocking something. The commodities are stored, in case they are not being currently used but have been planned to be used in the future. Warehousing defines the act or a process to store the commodities in a storage place specifically known as a warehouse. Generally, storage and warehousing are also used interchangeably, as warehousing is also a type of storage.

Storage refers to the action or method of stocking something. The commodities are stored in case they are not being currently used but have been planned to be used in the future. It is regarded as one of the important marketing functions in which goods are held and preserved until consumption.

Storage emerges as an important activity that is performed right after the production of the goods. However, sometimes the raw material may also be stored in order to be used later. Storage can be done at various places; the place of storage can be a very small room known as a store room or the commodities may be stored in special structures known as warehouses. Thus, one can say that data warehousing is a type of storage, and therefore most of the times they are used interchangeably in logistics. It particularly denotes the allocated space in a warehouse.

In warehousing, the items are stored in special structures known as warehouses. Warehouses are actually scientific types of storage structures that are constructed to protect the stored products. They ensure that the quantity and quality both remain intact. It is considered to be the most common form of storage. A warehouse is generally associated with a large building. However, there are several small warehouses too.

Some of the common warehouse storage systems are Pallet Racking (including selective, drive-in, drive-thru, double-deep, pushback, and gravity flow), Mezzanine (including structural, roll formed, racks), Vertical Lift Modules, Horizontal Carousels, and Vertical Carousels.

Comparison between Storage and Warehousing:

 

Storage

Warehousing

Definition

Storage refers to the action or method of stocking something. The commodities are stored in case they are not being currently used but have been planned to be used in the future.

Warehousing defines the act or a process of storing the foods in a storage place specifically known as a warehouse. Generally, storage and warehousing are used interchangeably.

Types

  • Static – Includes all fixed shelving and structures of various sizes. These are meant for the simple storage of materials.
  • Dynamic – Known for providing high levels of space usage.
  • Semi-automatic – It includes mobiles, vertical shifting and vertical and horizontal carousels.
  • Automated systems – Offers high level of safety.
  • In Agriculture, underground and surface storage types of structures are preferred.
  • Private – Owned and operated by channel suppliers and resellers
  • Public – Leased to solve the short term distribution problems.
  • Automated – Use of machinery in major activities like moving of product-filled pallets.
  • Climate–Controlled – Provides a specific controlled environment like freezers for storing frozen products.
  • Distribution center – It acts as just a common point for distribution. Things are stored for a short duration of time.

Etymology

C13: from Old French estor, from estorer to restore, from Latin instaurāre  to refresh; related to Greek stauros  stake + age (suffix).

C:18: from ware "manufactured goods, goods for sale," Old English waru, probably originally "object of care, that which is kept in custody, + house (Old English hus "dwelling, shelter").

Benefits

  • Storage ensures a continuous flow of goods in the market.
  • It aims to protect the commodities from deterioration.
  • It assists in the stabilization of prices by balancing the demand and supply mechanisms.
  • Provides employment and income through price advantages.

 

  • It ensures the protection of the quality and quantity of the commodities.
  • Safety requirements like temperature, humidly, insulation are taken care of.
  • Provides a maximum storage space.
  • It provides the facilities for processing, packing, blending, grading, etc. of the goods for the purpose of sale.
  • Warehouses provide a receipt to the owner of goods for the goods kept in the warehouse.

Image Courtesy: swaledalecheese.co.uk, zombie-guide.com

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