Warehousing

Every company has to store its goods when they wait to be sold. A storage function is required because production and consumption cycles hardly match. A company has to decide on how many and what types of warehouses it requires and where they will be located. The company may utilize either storage warehouses or distribution centres. Storage warehouses hold goods for moderate to long periods. Distribution centres are designed to move goods instead just store them. They are big and highly automated warehouses designed to retain goods from several plants and suppliers, take orders, efficiently fill them, and deliver goods to customers as rapidly as possible.

Warehousing facilities and equipment technology have greatly improved in current years. Older, multi-storeyed warehouses along outdated materials-handling technique are facing competition from newer, single-storied automated warehouses along advanced materials-handling systems under the control of a middle computer.  Only a few employees are necessary in these warehouses. Computers read orders and direct electric hoists, robots or lift trucks to collect goods, move them to loading docks, and issue invoices. These warehouses have reduced worker injuries, theft, labor costs, and breakage and have improved inventory control.