Types of Logistics Facilities
The following describes three major types of logistics facility.
Type 1. Distribution Centres (DCs). A distinction needs to be made between a warehouse and a DC. Some of their functions are similar. Warehouses are used to stockpile goods, primarily, while distribution centres tend to be, but are of course not always, operational centres of consolidation through which goods flow at high velocity. A warehouse could be said to perform many of the roles involved in supply chain movement and storage; but a distribution centre is typically a more centralised operation that performs some warehousing functions, but is always in the downstream portion of the supply chain. That is, distribution centres act as a temporary store for manufactured items that are typically ready to sell. Also, a distribution centre is often owned outright by companies who source a variety of products variously. Diverse products are collected (often delivered by their makers) and stored at their customer’s regional or national point of centralization, i.e., a distribution centre. The buying company/DC owner then forwards loads made up of combinations of items stored in its distribution centre, either to its retail points or directly to their customers. Thus, the DC acts as both inventory store and consolidation point. A DC might also be third party owned and operated.
Type 2. Bonded warehouses. A bonded warehouse is a highly secure form of warehouse whose owners are a government body (such as excise and customs authorities) or a governmentally licensed organisation. A bonded warehouse is legally able to receive and store imported products. Goods are only cleared for release to the market/importer when the required duties have been paid by the importer. Access to goods is strictly controlled. Companies may have paid for their goods, but the title only becomes theirs when the customs charges have been paid. In the United Kingdom, only HMRC or an approved third part can operate a bonded warehouse.
Type 3. Climate controlled warehouses. Certain categories of goods require storage in regulated environments. Obvious examples are chilled goods and perishables. A cold chain will require both vehicles and static facilities that are climate-controlled. Temperature and light conditions can degrade some categories of product, making them unusable or even dangerous. Frozen food, for example, must be kept frozen during all phases of transit and storage. Ambient warehouse temperatures – even in cool countries – will be insufficient to provide the necessary consistency in environment. Hence, facilities (and vehicles) must be designed around temperature controlling technologies. They must also contain storage cells that are appropriately insulated, mechanically maintained, and sealable – to guard against temperature fluctuation, tampering, and inefficiencies resulting from loss of integrity. Heating, ventilation, and air conditioning are operational concerns in all warehouses, but in cold-chain supply, climate-control is particularly important. Hence, in cold-chain design, climate controllability is a primary design factor. Maintenance and operation of the climate control equipment is, ideally, as automated as possible to ensure maximum energy efficiency and environment suitability.