What exactly is an interim storage facility?
An interim storage facility is a specific type of warehouse that is primarily used in production logistics. In multi-stage production, unfinished products, also known as semi-finished products, are stored here at short notice.
If the parts are then needed for a subsequent production step, they can be removed again. Intermediate storage therefore serves as an important link and also as a buffer between the various stages of production.
When is interim storage required?
Operating an interim storage facility is not essential for every manufacturing company. It is particularly important when a product goes through several production stages before it is finished.
If the production capacities of the different stages are not properly coordinated, demand and supply can be disrupted.
For example:
The output of one production stage is greater than the demand of the following stage. Here, surplus semi-finished products have to be temporarily stored in a temporary warehouse until they are needed.
Advantages of an interim storage facility
Companies that produce or trade goods in high volumes in particular benefit from such storage facilities:
- Simplified inventory control through central storage of individual primary or semi-finished products
- Lower transportation costs due to smaller distribution of storage areas
- More efficient flow of goods thanks to shorter delivery times
However, temporary storage is also used for goods that still have to go through a maturing process. These include cheese and wine, among other things.
