Warehousing and distribution


Warehousing and distribution refer to the storage and movement of goods within a supply chain. Warehousing involves the storage of goods until they are needed, while distribution refers to the transportation of goods from the warehouse to the end customer. Both warehousing and distribution are important elements of a supply chain as they ensure that goods are available when and where they are needed.


Warehouses can be owned by the company using them or they can be rented from a third party. They can also be classified as public warehouses, which are open to the public and available for use by multiple companies, or private warehouses, which are used by a single company.


Distribution networks can be complex, involving the use of multiple modes of transportation such as trucks, trains, and ships, as well as different distribution centers and warehouses. The design of a distribution network depends on a variety of factors, including the type of goods being shipped, the geographic locations of the customers, and the available transportation infrastructure.


Efficient warehousing and distribution are critical for ensuring that goods are delivered to customers in a timely and cost-effective manner. They also play a role in managing inventory levels and reducing the risk of stock-outs.



o Utilizing the storage space to the maximum

o Higher productivity of labor

o  Reduced material handling

o Reduced order filling time

o Maximum utilization of assets

oReduced operating cost


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Functions within the warehouse

Receiving:-

Coordinates activities involved in proper receipt of all incoming materials into warehouse, providing assurance that quantity as well as quality are as ordered, and distributing materials to storage or other organizational functions as they are needed.


Pre packing:-

 This is done when products are received in bulk from a supplier and repackaged in a single consignment. The entire consignment, which is received, may be processed at once, or a portion may be bulked up for later processing.


Storage:-

Putting away received inventory to supplement order taking. It can be explained as the physical holding of goods while awaiting demand. The method of storage depends on the size and quantity of the items in the inventory and the handling characteristics of the product or its container.


Order picking:-

Physical pickup of products from customer locations after receiving orders. In other words, the process by which goods are removed from storage to meet a specific demand. A document called pick list which contains details like sales order number, shipment details, item description, quantity etc. facilitates order picking.


Packaging and / or pricing:-

It is basically optional which can be done after the process of opting out.


Station and / or accumulation:-

This activity is performed when a warehouse stores multiple products.


Packing and shipping:-

Performing tasks related to dispatching orders. This includes the following tasks such as checking whether the order is complete or not, packing materials in a suitable shipping container, preparing shipping documents, including packing lists, address labels, and bills of lading, weighing the shipment to determine shipping charges , order deposit by outbound carrier, loading truck etc.


Traffic management:-

Selecting the best mode of transport for inflow and outflow.