Warehouse Definition, Types, and Functions in Logistics Industry

Getting to Know Warehouse’s Types and Functions in Logistics Industry

When observed closely, warehousing and transportation-related activities are integral to our daily consumption. Seamlessness and the cost of both activities determine the prices of products we consume.

This means warehousing and transportation contribute largely to the lives of many. Additionally, both play a prominent role in ensuring national economic growth.

Warehousing and transportation are like our blood that brings oxygen to the heart; the roads (ranging from national primary roads to toll roads) are the veins. Together, they drive economic growth. The data supports this analogy.

Data by Statistics Indonesia (BPS) show that throughout 2022, the transportation and warehousing sectors grew 19.87 percent. This constitutes the highest growth compared to other sectors.

Meanwhile, Q1 2023 saw a 15.93 percent growth in both sectors. Once again, the growth is the highest compared to other sectors.

See also: These Are the Criteria of Quality Warehouse to Store Your Goods

Warehouse Definition and Functions

So, what is a warehouse? What are its functions in business or productive economic activities? Numerous literatures define a warehouse as a place to store various goods.

The goods stored are typically raw materials for production, semi-finished goods, and finished goods.

As a place to store goods equipped with standard operating procedures, such as work rules and inventory for stored and delivered goods, warehouses provide stock data needed by companies.

With this data, factories or companies can estimate the need for raw materials for their products, inventory goods, and finished products or goods to be distributed to markets. Warehouse data can also help companies to find out the market absorption level.

That is the warehouse’s important role in production activities. In sales, its role is more or less the same: storing products to be dispatched to the distributors.

The same applies to exports. Generally, exported goods await dispatch schedule to the destination countries. During this waiting time, they are stored at warehouses for various terms.

The explanation illustrates that warehouses are generally used as places to store goods, consolidation hubs, secure stocks, distribution centers, and places to sort and divide goods for distribution. The functions are interrelated.

See also: Find Out about Stevedoring, The Act of Loading and Unloading Goods At The Port

Warehouse Types

There are several types of warehouses: one for storing raw materials or raw material warehouse, one for storing materials waiting to be assembled and sold or worked in a process warehouse, and one for storing finished goods or finished goods warehouse.

Seeing the warehouse’s vital role, you must select the right warehousing service as a business actor to ensure seamless and profitable business activities.

The right warehouse means one with swift, precise, effective, and efficient processes to support your business activities.

Pick the Trustworthy Logistics Service

However, if you want more practicality and efficiency in warehousing management, you can trust logistics companies. Keep in mind that logistics companies must be trusted, reputable, and credible.

One such company is SELOG, a business line of PT Serasi Autoraya or SERA and a part of PT Astra International Tbk, a company with extensive experience in the industry.

See also: Tips for Choosing the Right Logistics Company

Initially established to provide vehicle rental solutions, SERA has become the largest, industry-leading transportation provider.

With more than 32 years of experience, SERA continues innovating and providing effective, efficient, and high-quality logistics services through SERA Logistik (SELOG).

SELOG is here to serve the customers’ needs in end-to-end logistics through diverse services, ranging from Contract Logistics, Shipping Services, Shipping Agency, Freight Forwarding, Warehouse and Yard Management, to Courier Services.

Driven by the latest digital technologies, its services bring greater convenience to your business and are effective and efficient.

With its Astra Fleet Management Solution (Astra FMS), SELOG is giving you an IT-backed, all-in-one solution for vehicle management.

This company also has a well-maintained fleet of vehicles and equipment. Thus, they are ready to use anytime. To learn more about SERA’s profile and its services, including SELOG, visit its official website at