Warehouses seem like a modern-day invention to hold goods before they are ready to be distributed or delivered to customers. But they aren’t that new at all. In fact, humans have been storing supplies for centuries. Here is a brief history of warehousing, including how we got to the modern-day version and its more advanced techniques.
The First Warehouses
Roughly 2,200 years ago, the Romans were well-known for conquering other nations. During this period, they built the Horrea Galbae, which resembles modern warehouses in that it was used to store and retrieve goods.
This first warehouse was a large network of buildings near the Tiber River, covering about 225,000 square feet and containing over 140 separate rooms. It was used to store a massive grain supply for the public, as well as imported goods like wine, olive oil, and clothing.
It was a deliberate decision to build this massive network of warehouses adjacent to the river because Roman ships would show up at the port packed with goods. As the Romans continued to conquer new lands, they would bring home the “spoils” and establish new trade routes for ongoing commerce.
Using “Warehouse” as a Term
The Romans might have invented the warehouse. But they didn’t use the word. The first use of the term “warehouse” dates back to Britain in the 1300s. The British defined a warehouse as “a structure or room for the storage of merchandise or commodities."
In the following centuries, England extended its global reach with durable, fast cargo ships that moved goods along international trade routes. At the same time, the British established their “warehouses” in ports all over Europe and beyond.
The Industrial Revolution and “Warehousing”
The term “warehouse” was transformed into a verb during the first Industrial Revolution in the late 1700s. At that time, the idea of “warehousing” to improve efficiency became more widespread.
With the rise of mass production using textile and other machinery and the availability of steam engines, there was greater capacity to produce goods on a massive scale. Those were often held in various domestic warehouses until needed or shipped overseas as part of international commerce.
The Birth of Logistics
The first Industrial Revolution was only the beginning of a massive transformation in the warehouse industry. As railroads began connecting cities and towns throughout North America, this also allowed the logistics industry to grow and flourish.
Warehouses in certain larger cities were soon used as hubs to store goods for movement to locations further down the line. This greater availability of goods was one of the catalysts for allowing many smaller towns to grow into flourishing cities.
The Second Industrial Revolution was born in the late 1800s when electricity became available to power the expansion of manufacturing operations. Suddenly, factories and warehouses had access to telephones, light bulbs, and internal combustion engines.
The invention of the automobile was a turning point in commerce and the short-range transportation of goods. One of the first companies to realize the potential for mass commerce was Sears, Roebuck & Co., which built a booming mail-order business. The famous Sears catalog sold thousands of items, with everything from tools to appliances to clothing and even single-family home kits. Much of this merchandise was stored in a massive Chicago distribution center covering 3 million square feet.
Evolution of Warehouse Management and Technology
As warehouses and distribution centers grew larger, such as the massive one used by Sears (above), there was a need for more organized inventory storage and order fulfillment processes. With Sears, things were still handled by hand for many years, where customers filled out order forms with the items, sizes, and quantities they wanted to purchase through the mail.
New manufacturing methods and industries in the 1900s necessitated the development of improved processes and the adoption of solutions such as forklifts, hand trucks, and sophisticated storage racks. Driven by the demands of World War II, manufacturers invented a range of adjustable pallet racking in the 1940s and 1950s.
The technological revolution in warehousing began in the 1970s with the adoption of the barcode and UPC. By 1984, about one-third of U.S. grocery stores were using the technology. But it also has applications in warehouses. In 1975, J.C. Penney installed a warehouse management system (WMS), which gradually became more sophisticated over several decades. By 2004, up to 90% of Fortune 500 companies had digitized using barcodes and a WMS.
The Warehouse of Today and the Future
Over the past several decades, the warehousing industry has evolved and become even more innovative. Improving on the barcode concept, many businesses are now using RFID tags in combination with a WMS.
Warehouses are also improving efficiency and productivity by leveraging technology solutions like robotics, wireless computing, wearables, and mobile workstations. We now see even more innovation in warehousing and logistics, including artificial intelligence (AI), the Internet of Things (IoT), big data, machine learning, and advanced analytics.
As you can see, the warehousing concept takes us back centuries. As business owners have continued to work on finding cost-effective, efficient ways to store materials and fulfill orders, these systems have evolved into what they are today. Technology solutions are ushering in an entirely new revolution in warehouse management. One day, our current era will be viewed as a catalyst for the future of warehouses.
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