What exactly is an interim storage facility?
A temporary storage facility is a specific type of warehouse, which are mainly found in production logistics. In multi-stage production, unfinished products, also known as semi-finished products, are stored here for a short time.
If the parts are then needed for a subsequent production step, they can be removed again. Thus, the intermediate storage serves as an important link and also as a buffer between the different stages of a production.
When is an interim storage facility needed?
Operating an interim storage facility is not essential for every manufacturing company. It becomes especially important when a product goes through several manufacturing stages before it is finished.
If the manufacturing capacities of the different stages are not properly coordinated, demand and supply can be disrupted.
As an example:
The output of a manufacturing stage is greater than the demand of the subsequent stage. Here, surplus semi-finished products have to be temporarily stored in an intermediate warehouse until they are needed.
Advantages of an interim storage facility
Especially those companies that produce or trade goods in high volumes benefit from such stockpiles:
- Simplified inventory control through central storage of individual primary or semi-finished products
- Lower transport costs due to smaller distribution of storage areas
- More efficient flow of goods due to shorter delivery times
However, a temporary storage facility is also used for goods that still have to undergo a maturing process. These include, for example, cheese or wine.