Warehousing and distribution are integral components of logistics management within the supply chain.
Warehousing: This involves the storage and management of goods, materials, and products in a facility known as a warehouse. Warehouses serve as intermediate points between production and distribution, providing a location for the temporary storage of inventory. Key functions of warehousing include inventory management, order fulfillment, receiving, picking, packing, and shipping. Effective warehousing practices aim to optimize storage space, minimize handling costs, and ensure the efficient flow of goods through the supply chain.
Distribution: Distribution encompasses the processes involved in delivering products from the warehouse or production facility to the end customer. This includes transportation, routing, scheduling, and delivery operations. Distribution networks may involve various modes of transportation such as trucks, trains, ships, or airplanes, depending on factors such as distance, speed, cost, and product characteristics. The goal of distribution is to ensure timely and accurate delivery of products to customers while minimizing transportation costs and maximizing service levels.