Production Warehouse

Description of production warehouse

Production warehouses and production halls have several functions. First and foremost, they are intended to support the production process. They are classified into three types depending on their set-up and range of functions:

• Upstream production warehouse: Raw materials and other materials necessary for production are stored in this warehouse. Ensuring trouble-free production without interruptions is the goal of the upstream production warehouse.
• Intermediate production warehouse: They are used to store intermediate products, the so-called semi-finished products. These are prefabricated items that are created at the beginning of the production process.
• Downstream production warehouse: This is where finished products are deposited.

Upstream depots can be described as production-oriented warehouses. They receive raw materials and materials to continue processing at a later point in time. Among other things, such storage areas represent a valuable buffer to prevent breakdowns and costly interruptions of production processes with upstream and intermediate stored components.

Intermediate and downstream production warehouses are also sales-oriented storage areas. Among other things, semi-finished elements are pre-sorted and temporarily stored there in order to make them available for specific processing when required. On the one hand, this procedure shortens delivery times, and on the other hand, companies benefit from economic advantages such as capital commitment and storage space requirements are reduced. The finished products placed in the sales-oriented production warehouse are ready for sale or dispatch.

Areas of application of the production warehouse

Although just-in-time production is more in demand than ever, many companies cannot do without production warehouses. Such warehouses are particularly important in seasonal industries, as the production warehouses provide indispensable services to the companies in order to achieve their business management goals. But they are also elementary in sectors such as the automotive industry in order to meet the high demands of dealers and customers.