Warehousing refers to the process of storing goods, raw materials, and finished products in a designated facility before they are distributed or sold. It plays a crucial role in the supply chain by ensuring that inventory is safely stored and efficiently managed to meet demand.
Key Functions of Warehousing:
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Storage: Safeguards goods from damage, theft, and deterioration.
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Inventory Management: Helps track stock levels and organize products.
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Order Fulfillment: Facilitates picking, packing, and shipping of goods.
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Value Addition: Sometimes includes services like packaging, labeling, or assembling.
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Buffer: Acts as a buffer between production and consumption to handle demand fluctuations.
Types of Warehouses:
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Private warehouses (owned by companies)
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Public warehouses (available for rent)
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Bonded warehouses (for storing imported goods under customs control)
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Distribution centers (focus on quick movement and fulfillment)