Warehousing Service

Warehousing and storage facilities comprised 13,000 establishments in 2004. These firms are engaged primarily in operating warehousing and storage facilities for general merchandise and refrigerated goods. They provide facilities to store goods; self-storage mini-warehouses that rent to the general public also are included in this segment of the industry.
The deregulation of interstate trucking in 1980 encouraged many firms to add a wide range of customer-oriented services to complement trucking and warehousing services and led to innovations in the distribution process. Increasingly, trucking and warehousing firms are providing logistical services encompassing the entire transportation process. Firms that offer these services are called third-party logistics providers. Logistical services manage all aspects of the movement of goods between producers and consumers. Among their value-added services are sorting bulk goods into customized lots, packaging and repackaging goods, controlling and managing inventory, order entering and fulfillment, labeling, performing light assembly, and marking prices. Some full-service companies even perform warranty repair work and serve as local parts distributors for manufacturers. Some of these services, such as maintaining and retrieving computerized inventory information on the location, age, and quantity of goods available, have helped to improve the efficiency of relationships between manufacturers and customers.
Many firms are relying on new technologies and the coordination of processes to expedite the distribution of goods. Voice control software allows a computer to coordinate workers through audible commands—telling workers what items to pack for which orders—helping to reduce errors and increase efficiency. Voice control software also can be used to perform inventory checks and reordering. Some firms use Radio Frequency Identification Devices (RFID) to track and manage incoming and outgoing shipments. RFID simplifies the receiving process by allowing entire shipments to be scanned without unpacking a load to manually compare it against a bill of lading. Just-in-time shipping is a process whereby goods arrive just before they are needed, saving recipients money by reducing their need to carry large inventories. These technologies and processes reflect two major trends in warehousing: supply chain integration, whereby firms involved in production, transportation, and storage all move in concert so as to act with the greatest possible efficiency; and ongoing attempts to reduce inventory levels and increase inventory accuracy.

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