Anyone who has any contact or works with logistics always comes across two terms that are very present in the routine of this area: stock and storage.
Anyone who has any contact or works with logistics always comes across two terms that are very present in the routine of this area: stock and storage. Although they are similar, the concepts are quite different and should not be confused.
But after all, what is stockpiling?
Stock or stockpiling are terms that refer to permanent or temporary storage of raw materials, semi-finished products or even ready-to-consume goods.
A stock may contain, for example:
-Products ready to be sold to the end consumer;
-Only the raw material to be used in a given production process;
-Goods to be distributed among different branches;
-Products stored as market reserves.
Inventory is present in a variety of activities, from industries to retail stores. Sometimes, it is larger than the entire area of the company's main activity.
And what does storing mean?
Storage is just one branch of warehousing, which is a much broader concept. It also encompasses the logistics processes linked to distribution of goods, such as: classification (ABC curve), accuracy, flow, separation and movement of SKU's (Stock Keeping Unit), equipment and technologies used, packaging, removal and shipment of products. In addition to all the other activities that are part of a company's production process.
In other words, all activities carried out in warehouses, distribution centers and stockrooms are part of a company's storage system. Therefore, when we use the term storage, we are referring to all operations that are necessary to maintain a stock, move and transport goods with the aim of supplying factories, stores and customers.
And what is the main difference in practice between them?
Inventory has a direct impact on cash flow and sales strategies. Storage, on the other hand, is linked to logistics and distribution centers. Therefore, the strategies used for each of the processes are completely different.
The inventory manager always needs to remember that merchandise stuck in stock is synonymous with money stuck, in addition to always keeping the space organized. The storage manager must think about systems to manage the flow of goods, documenting processes and products, aiming to speed up movements with a focus on continuous improvement.
Storage has a direct impact on production, availability, delivery times and the final price of the product. Therefore, the strategies adopted to plan storage must take into account all the necessary requirements: equipment, processes, documentation, employees, better use of physical space and inventory organization procedures.
How can Intralogistics optimize both processes?
By definition, intralogistics is the part of logistics that refers to the organization of the set of material flows, processes and information that occur within the company's own borders. For example: movements of goods in the warehouse, inventory control, among others.
One intralogistics system Modern and automated is synonymous with efficiency and profitability. Cargo movements and relocations represent a reasonable percentage of intralogistics costs.
Warehouse automation offersand excellent results in the facilities that record a high volume of operations whose path is repeated, such as large industries, since this guarantees that the investment in these systems will be long-lasting. Therefore, pallet and heavy load storage systems have led the change towards automation.
However, the online business growth has forced companies to adapt to e-commerce logistics. To this end, they also resort to implementing automatic systems to speed up the processing of smaller and heavier packages and boxes, resulting in agility and a differentiated price on the market.
Want to go further? Check out our storage and shipping guide for goods. In this free material, you will find tips on how to make these processes more efficient and achieve better results for your company.
