Warehouse is an important part of physical distribution, especially when a manufacturer produces consumer products. Warehouse is a commercial building used for storage of goods.
Some inventory is kept in the plant or nearby, while the rest are stored in warehouses at other locations.
Private warehouses can be owned by a company, while public warehouses can be rented. Strong warehouses can store goods for longer periods of time. Distribution warehouses receive goods from different suppliers and company plants, and then move them out as quickly as possible. Cold storage is an option for some warehouses. Specialized warehouses are available for agricultural products. pharmaceutical warehousing
Older warehouses with multiple stories have slow elevators, inefficient material-handling processes and inefficient material handling. These outdated warehouses are being replaced by newer automated warehouses that can be accessed from any location. The computer interprets store orders and directs lift trucks to collect goods according to bar codes. It also moves them to loading docks and issues invoices. These warehouses reduce worker injuries, labor costs and pilferage as well as improve inventory control.
It is important to consider the transportation costs when choosing the best location for a warehouse. Logistics management must decide on customer service, inventory levels, and whether a company warehouse is better than a public warehouse. Some large companies have warehouses managed by their sales department. In other cases, arrangements are made with public storage facilities.
A good location and a sufficient number of warehouses can provide better customer service. It can also reduce transportation costs, if goods are transported by wagonloads or truckloads into the warehouses.