What is Auto Warehousing

January 12 , 2023 | CATEGORY : SERVICES

Auto warehousing is a storage and logistics system that eliminates the long struggling process of storing and transporting automobiles. This reduces the cost and time associated with storing and retrieving inventory.

It is used to store and manage car parts and accessories, and to track inventory levels and stock locations. The system uses barcodes and scanners to track inventory, and it can be integrated with existing business systems such as ERP systems and warehouse management systems.

The automobile sector includes a diverse group of businesses engaged in the development, production, promotion, and sale of motor vehicles.

The automotive logistics market is projected to reach $472.9 billion by 2025, growing at a CAGR of 7.55% over this period. The rising demand for transportation and the need for infrastructure improvement are major drivers behind the market growth.

The automobile sector contributes around 3% of the global GDP and is the main engine for macroeconomic growth in established and developing economies. It also propels the technological development of other neighboring industries.

Overview of auto warehousing

Auto warehousing is a process that helps car manufacturers and dealerships store and distribute vehicles.

Auto warehousing involves the storage of cars in a secure facility. Cars are typically stored in an indoor or outdoor lot, depending on the weather. A car warehouse can also act as a distribution center. This means that the warehouse can send cars to dealerships or other parts of the country.

The automobile industry is one of the most competitive industries, and success in this field depends on adaptability, quality, and agility. Logistics activities are highly dependent on warehouse activities and the expenses are highly connected to it. The company may experience significant value benefits because of its optimization and performance evaluation.

The automobile industry plays a significant role in India's economy, ranking sixth globally in terms of volume and value produced. Automakers account for around 7 to 8 percent of India's total employment, contributing roughly 7 percent to the country's GDP.

Automation in auto warehousing plays a key role in reducing time and effort as half the transitions and logistics happen through computers and data automation makes it easier to keep track. Automation reduces the manpower effort in the warehouse streamlining a smooth process.

The benefits of auto warehousing

Auto warehousing is a process that can save your business time and money.

Auto warehousing also offers benefits, such as:
Reduced shipping costs. Reduced packaging costs. Reduced labour costs. Increased efficiency


  • Choosing the right auto warehousing partner

Choosing the right auto warehousing partner is an important consideration for anyone looking to use this solution. When selecting a warehousing partner, it is important to look for a provider who can provide reliable and consistent service, as well as one who can customize their solutions to meet specific customized needs.

You also want to make sure that the partner has the necessary infrastructure and resources to handle the volumes of the business, as well as having a system in place that is secure and efficient. Additionally, ensure they have both the required permits and licenses in place before signing any agreement. An auto warehousing company that offers customer service and technical support is also beneficial for the process.

Best practices for implementing auto warehousing

Whether you are new to auto warehousing or looking to optimize your existing setup, there are certain best practices to follow. Firstly, take advantage of digital tools such as software and hardware systems to further streamline auto warehousing operations. Invest in reliable systems that will be able to handle large amounts of data with minimal downtime and maximum accuracy. Finally, make sure that you have clear communication channels between all entities involved in the process – suppliers, manufacturers, distributors, and carriers – to ensure smooth transitions throughout the chain.

A warehouse management system is software that directs and coordinates a warehouse's daily operations (WMS). Some of these are real-time yard management, real-time data transfers, real-time vehicle locating, dealer delivery, import/export planning, rail car preparation and switching, rail car loading and unloading, and extensive assembly plant operations.

The WMS helps in order picking, packing, and shipping as well as receiving, placing, and packing of goods.

There are numerous activities that you may perform within the warehouse. These are inclusive of the following:

  • Moving items
  • Maintaining entries in the warehouse ledger
  • Managing the shop floor bins
  • Eliminating warehouse items
  • Counting warehouse items
  • Setting up and utilizing cycle counting

When it comes to auto warehousing logistics, flexibility, and scalability are non-negotiable. It’s essential to ensure the right warehouse and supply chain management as per the style, size, and shape of different items.

Allcargo Logistics helps you with efficient stock management systems designed to achieve effortless coordination between transporters, and retail outlets with utmost safety and security. We also make sure that our logistics solutions are aligned to meet your automobile business requirements.