Distribution centers and warehouses
Distribution centers and warehouses are those physical facilities that are used to store and ship inventory. The main difference between warehouses and distribution centers is that distribution centers are situated close to the markets they serve to provide better services to the customers. These centers may have customer service facilities that allow customers to pick up goods at the center itself.
Warehouses may also serve customers directly but are commonly used to store raw materials that are needed to be shipped to the manufacturing firm and finished goods that are to be shipped to the retailing firms. The RPG-owned Spencers Hypermarket in Hyderabad is an example where a warehouse is successfully used to serve as a retail front.
Thus all three functions of materials management: production control, inventory control and materials handling need to be properly managed in a firm to maintain a smooth flow of materials.
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