Types of Warehouse Storage Systems in Australia

Warehouse Storage Systems

Every product is not sold as soon as it is manufactured. Moreover, a factory or manufacturing unit cannot be started and closed at one’s will –usually, the department has to keep the process ongoing. However, depending on the demands in the market – the company may not sell the finished products outright. So, they are stored in warehouses for supplying to the sellers as soon as the demand increases. In other words, warehouses maintain the year-round availability for the customers and deliver them to the market as per the demand. Here in this article, we are going to discuss the different warehouse storage systems in Australia.

The Functions Of Warehouses

Warehouses are an essential part of the supply chain and serve a significant role in the distribution pathways. The critical utilities of the warehouse are listed as follows:


It is the most expected function of the warehouse system. Mass-produced or surplus products are stored in warehouses to supply them in the markets whenever the demand arises. The warehouses oversee the operation from the container unpacking to the supply in the market.

Price equilibrium

Due to the continuous supply from the warehouses as per demand, the value of products in the market remains stable. The warehouses stop any sudden increase or decrease in the price of a product- and maintain the price equilibrium.

Managing Risks

After production, environmental factors, transport, climate, fire, etc., can harm the goods. Professionally- controlled warehouses have systems to lessen these damages and properly store the products. Usually, the products are also insured for damages while they are stored in the warehouse.

Collateral for funds

The products stored in the warehouses also act as collateral for raising funds. The business owner can raise funds to produce other goods or other requirements based on the products stored in the warehouses. They can also get loans using the stored products as collateral.

Processing and Packaging

One of the vital supplementary processes offered by the warehousing business is the processing and packaging of the goods. These services make the products ready for sale and complete a job for the manufacturing company. This service is essential for agricultural produce. 

Other than the above, warehouses also act as transportation businesses or as forwarding agencies, making them a vital component of the supply chain system. However, some of them can charge or work on a commission basis for these services. 

The Benefit To The Manufacturers

Warehouses help the manufacturing companies in addition to the suppliers and the consumers. Using warehouses for their products offer them the following advantages:

Stability of manufacturing

Warehouses can store large quantities of raw materials, which the manufacturing company can gradually use in batches. This step ensures that the manufacturing remains continuous throughout the year. Likewise, finished products are stored in warehouses and supplied to the market as per demand, confirming business operations.


Warehouses store manufactured and ready-for-market products, which saves a great deal of time when the demands increase. Consequently, there is no need to speed up production suddenly. For goods that need time to reach their optimum levels, like ‘aging’ for wines, this is beneficial from a product standpoint. 

Wastage prevention

Excess goods stored in the warehouses are kept at optimum temperature. This step reduces the chances of spoilage, contamination, and food-related poisoning – which prevents the wastage of the products. Holding the finished products in the warehouses also prevents loss for the manufacturing company for perishable goods like crops, produce, and eatables. 

Warehouses maintain the flow of the supply chain economy and inhibit price disturbances and the lack of essential commodities. 

Types Of Warehouse Management Systems

With the new data-driven systems, warehouse management has become easy and economical. The following factors have shaped the current scenario of warehouse management being dependent on the most recent data and made the legacy system an obsolete aspect of warehouse management systems (WMS).

  • Single-channel presence as per customer expectation.
  • Optimum operational efficiency due to constricted profit margins.
  • Visibility, control, and insight for overall processes of the WMS.

If you work in the logistics sector, you must have heard of WMS types and their benefits and drawbacks. There are four predominant types of WMS, but the choice among them depends on the business, its extent, its inventory, and the stock management. Let us know about these, as follows:

Read More: Know Your Warehouse – A Guide to Warehouse Storage Systems

Standalone WMS

According to industry experts, this WMS is the simplest one to install and activate in a warehouse. This WMS requires scarce consolidation byways – a hindrance in running facilities requiring complex oversight. This WMS covers the fundamental necessities like facilities of the operation and inventory supervision, increasing the efficiency of operational processes. Standalone WMS is applicable for smaller companies without the need for extensive functional coverage.

ERP Module 

An Enterprise Resource Planning Module or ERP is known for refining and effective scaling, making it more than proper for concerns to expand quickly. ERP collaborates perfectly with the fundamentals required for an active operation to run without being a dedicated WMS. It assists with the administrative side of functions, like purchasing, project and risk management, and even customer service makes it an effective WMS.

Cloud-Based Platform 

One of the immediate benefits of technological advancement, cloud-based platforms are making impressive waves in the WMS sector. It is cost-effective from the start because of its server-dependent, off-premises nature and reduced operational cost. – making it among the fastest and most convenient WMS. It also provides increased IT security, simple software integrations and infrastructure, portability, simple format, scalability, and user-friendliness –making it a favourite choice for WMS among several third-party logistic businesses. 

Supply Chain Module

This WMS module expands the consolidated and across-the-board additives. Along with the usual functionalities of WMS software, it has additional capabilities for customer service, vendor organization, shipping, customer relationship oversight, and several other essential features. It is used with other systems to enable the appropriate coverage of this WMS system fully. 

Choosing Correctly

A sound WMS system will align the target with your business operation and provide you with up-to-the-minute information about the various aspects of your warehousing business. However, according to the experts, each type of these WMSs is applicable and beneficial depending upon the business operation. 

So, if you are looking for third-party WMS assistance or a warehouse for rent Perth for manufactured products – it is better to understand your trade requirement, gauge its scale, and consult with experts if needed.