Learn about Warehouse Services
Warehouse services form the backbone of modern supply chains, enabling businesses to store, manage, and distribute goods efficiently. From small startups to multinational corporations, companies rely on warehouse solutions to keep inventory organized, reduce overhead costs, and meet customer demands promptly. Understanding the various types of warehouse services, storage options, and inventory management systems can help businesses optimize their operations and stay competitive in today's fast-paced market.
Warehousing is more than renting space in a large building. For many UK organisations it is a coordinated set of processes that protects stock, keeps inventory visible, and supports faster dispatch to customers, stores, or manufacturing sites. Understanding what is included, how storage is organised, and how costs are typically structured makes it easier to select a setup that fits your products, volumes, and service expectations.
What does a warehouse company offer?
A warehouse company commonly provides receiving, put-away, storage, and dispatch, with optional services such as picking, packing, labelling, returns handling, and value-added work (for example, kitting or rework). Many sites also offer cross-docking, where inbound goods are transferred quickly to outbound vehicles with minimal storage time. Service is usually governed by operating procedures and service level agreements covering cut-off times, order accuracy, and how exceptions (damages, shortages) are recorded and resolved.
Understanding warehouse storage solutions
Storage solutions vary depending on product size, turnover, and handling needs. Typical options include pallet racking for standardised unit loads, shelving or bin locations for small parts, and bulk floor storage for faster-moving or irregular items. Some facilities support temperature-controlled storage, secure cages for high-value goods, or bonded arrangements for certain customs processes. In practice, the right layout reduces travel time, improves safety, and helps protect goods from crushing, moisture, or contamination.
How inventory storage solutions work
Most professional operations use a warehouse management system (WMS) to register receipts, allocate locations, and guide picking. Stock is identified using barcodes or RFID and updated as movements happen, helping businesses reconcile physical stock with system records. Counting methods range from annual stocktakes to rolling cycle counts focused on high-value or fast-moving SKUs. When inventory data is accurate, businesses can reduce safety stock, investigate discrepancies faster, and plan replenishment based on what is actually available.
Choosing between different warehouse options
The most common choice is between shared-user warehousing and dedicated space. Shared-user models spread labour and space across multiple customers, which can suit variable demand and smaller volumes. Dedicated solutions can suit stable volumes, specialised handling, or bespoke processes, but may require longer commitments. Location also matters: sites near motorways, ports, rail terminals, or major population centres can reduce transport time, while regional facilities may suit multi-node distribution to balance speed and cost.
Cost considerations for warehouse services
Warehousing charges are often built from several components: storage (commonly priced per pallet, per square metre, or per bin), inbound handling (receiving and put-away), outbound handling (picking, packing, and despatch), and extras such as packaging materials, returns processing, or compliance checks. Costs can rise with non-standard requirements such as oversized items, high SKU complexity, short cut-off times, or seasonal peaks that require additional labour. Contract length, minimum monthly volumes, and service levels also influence the overall commercial model.
| Product/Service | Provider | Cost Estimation |
|---|---|---|
| Contract logistics and warehousing (custom solutions) | DHL Supply Chain (UK) | Typically quotation-based; UK benchmarks often include pallet storage charged per week plus separate in/out and pick fees depending on profile and volume. |
| Warehousing and fulfilment (shared or dedicated) | GXO Logistics (UK) | Typically quotation-based; pricing commonly reflects space, labour, throughput, and automation needs rather than a single public rate. |
| Contract logistics (including warehousing) | Kuehne+Nagel (UK) | Typically quotation-based; estimates often combine storage, handling, and management fees aligned to agreed service levels. |
| Warehousing and distribution services | DB Schenker (UK) | Typically quotation-based; costs usually vary by location, pallet type, value-added services, and transport integration. |
| Contract logistics and supply chain services | CEVA Logistics (UK) | Typically quotation-based; common benchmarks split charges into storage plus handling and fulfilment activities. |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
As a general guide in the UK market, businesses often see pallet storage priced as a weekly or daily rate, with separate charges for goods-in/goods-out and per-order or per-line pick and pack. If you need clearer predictability, ask suppliers how they treat peak periods, minimum charges, pallet type (standard vs oversized), and whether packaging, re-labelling, or returns are billed separately.
A practical way to evaluate options is to map your operating profile: average pallets stored, peak pallets, inbound deliveries per week, order lines per day, and any special handling (fragile goods, serial number capture, hazmat restrictions). When comparing proposals, look beyond the headline storage rate and check how accuracy targets, cut-off times, and exception handling are measured. The “right” solution is usually the one that matches your service needs consistently, not the one that only looks low-cost in a simplified scenario.
