Types of Warehousing in the Savannah Region: A Comprehensive Guide

September 6, 2024

Types of Warehousing in the Savannah Region: A Comprehensive Guide

By

Continental Logistics

Savannah is a logistics powerhouse located on the Atlantic coast. It serves as a strategic gateway for international trade, and its deepwater port is one of the busiest in the US. This characteristic makes the city a major logistics hub catering to shippers and supply chains across the Southeast and beyond. Savannah warehouse distribution is also one of the most strategic across the country.

The city's warehousing landscape boasts unique infrastructures, allowing businesses of all sizes and various industries to leverage them extensively. Each category or warehouse type serves a unique purpose and offers specific benefits, impacting everything from storage costs to delivery speed.

This article highlights the warehousing environment, providing shippers with ample information to make better decisions that will significantly impact their efficiency and bottom line.

The Savannah Warehouse Advantage

There are several reasons why shippers and other supply chain stakeholders prefer the Savannah warehouse landscape. Some of these include:

Strategic Location

More than three million square feet of warehouse space is within 30 miles of the Port of Savannah, allowing easy access to major shipping lanes and making it ideal for imports and exports. The proximity to key markets in the Southeast and Midwest further enhances the appeal of the warehouses.

State-of-the-Art Infrastructure

Savannah's modern facilities and cutting-edge technology, including the largest retail import distribution centers on the East Coast with adjacent rail access, are designed to ensure efficient cargo handling and minimize delays. This efficiency level should give you the confidence that your operations will run smoothly.

Extensive Rail and Highway Network

Savannah's well-connected transportation infrastructure enables seamless cargo movement throughout the region. With 1.4 million square feet of covered storage, its extensive rail network and access to major highways ensure efficient and timely deliveries.

Competitive Pricing

Savannah port efficiency and infrastructure investments translate into competitive pricing for shippers. This, combined with various warehousing options, allows businesses to control costs and maximize profitability.

The Categories of Savannah’s Warehouse Scene

Savannah offers a variety of warehousing options, serving a broad spectrum of businesses and industries.

1. Private Warehouses

These warehouses are owned by various logistics stakeholders involved in extensive supply chain operations, including suppliers, manufacturers, and distributors. By utilizing these private warehouses in Savannah, shippers can gain greater control over the handling and storage of their inventory or raw materials.

Mega retailers and companies with high inventory volumes moving in and out of the ports and surrounding areas also have and manage various private warehouses exclusive to their business and operations. Examples of these are Home Depot and IKEA.

2. Public Warehouses

Owning a Savannah warehouse can and will often require plenty of capital. For many companies or businesses, this could seriously impact the effectiveness of their supply chains. However, that doesn’t have to be the case with public warehouses.

Public warehouses are facilities, infrastructure, and space available to the public, especially start-ups and smaller businesses that cannot afford to own their warehouses. These facilities help them avoid that large initial investment, freeing up capital for more crucial aspects of supply chain operations. Third-party logistics providers and drayage companies, including major players like Port Jersey, own and operate these warehouses.

3. Bonded Warehouses

Considering that the government is the major stakeholder in all ports, including the Savannah port, it makes sense that they also own or control warehouses to enhance their ability to manage the port effectively.

Bonded warehouses are government-licensed storage areas allocated for imported duty of unpaid goods. The government uses these warehouses to store seized goods and those pending clearance on what to do next or goods that shippers, especially manufacturers, cannot pay taxes on until the goods are sold or shipped. Some businesses, like those in the pharmaceutical industry, can also leverage these warehouses to store high-value items securely.

4. Cooperative Warehouses

These are warehouse facilities and infrastructures beyond what logistics providers and many SME businesses can manage. They are owned and operated by mega organizations such as farmers' cooperatives and are used for business operations involving large-scale storage of inventories that these cooperatives manage.

In many cases, multiple businesses under the cooperatives use the warehouse simultaneously and rely on it to reduce transportation and packaging costs.

5. Distribution Centers

Distribution centers allow businesses to offer fast-paced order fulfillment and distribution services, connecting supply chain stakeholders across the entire operation, including customers. When shipments are cleared from the ports, they are transported to these distribution centers, which kickstarts the local fulfillment process.

Many shippers utilize cross-docking to optimize them and minimize storage time and costs. Examples of companies that leverage these facilities are Amazon and Walmart.

6. Automated Warehouses

Automated warehouses are facilities primarily operated with technology solutions and applications such as artificial intelligence, machine learning, and robotics for maximum efficiency and effectiveness.

These warehouses serve various industries, including textiles, electronics, and household goods that do not require temperature control, such as foods, beverages, and pharmaceuticals.

7. Cold Storage Warehouses

Cold storage warehouses in Savannah are designed to efficiently store temperature-sensitive products, such as those from food and beverage or pharmaceutical supply chains. These products are naturally highly sensitive to heat, and the wrong temperature could damage them, leading to significant losses.

Cold storage warehouses are gaining popularity due to continuous technological innovations allowing such facilities to maintain varying temperatures for different goods.

8. Cross-Docking Warehouses

Also known as transloading facilities, they are designed to allow for seamless and rapid transfer of goods between different modes of transportation or vehicles of the same mode. The cross-docking warehouse is not designed to hold or store goods for an extended time. Shippers or forwarders can use the warehouse to transfer goods between inbound and outbound transportation with minimal storage time.

This approach enhances shipping efficiency by reducing the handling time required for each shipment. For example, Continental Logistics' cross-docking warehouses significantly minimize warehouse dwell time, which is crucial for speed and agility. We facilitate the faster movement of goods while managing logistics to ensure everything is coordinated for maximum efficiency.

9. Dedicated Contract Warehousing

There are cases where logistics providers, like Port Jersey Logistics, may allocate a section of their warehouse to a dedicated client while ensuring that that space is well equipped to cater to the needs of the business leasing it, from storage layouts and equipment to specialized handling processes for their particular products. In some cases, these warehouses are leased exclusively to a single client.

All of these services are typically provided under long-term contracts. Unlike public warehouses, where businesses can rent space on a short-term basis without additional benefits, dedicated contract warehousing offers comprehensive, tailored solutions.

Navigating the Savannah Warehouse Scene

Although Savannah offers numerous warehouse options, it's essential to partner with a logistics provider that has access to a diverse network of warehouses equipped to keep your supply chain operations running smoothly. For such a partner, look no further than Continental Logistics.

We're not just your average logistics and warehouse provider; we're a collaborator backed up by years of experience and deep insights into the local market. That is why we can offer you a full range of warehousing solutions, from traditional storage to advanced cross-docking and fulfillment services. Connect with us today.

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