It Was About The Importance Of Warehousing In Distribution (Case Study Sample)

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Logistics and distribution
A warehouse is a large structure for storing raw materials or finished goods before they are fed into the production line or shipped to customers. The rationale behind setting up a warehouse is to ensure efficient and sufficient flow of inputs to the production process without having to rely on erratic suppliers. However, with increasing competition in the modern business environment, organizations are forced to seek out ways of optimizing their supply chains using techniques such as lean manufacturing or just-in-time production which advocate for complete elimination of the warehouse or reducing to its minimal form (Rushton, Phil and Peter 56). The warehouse is seen as a point in the supply chain where the flow of goods stop and costs are added without any value being added.
However, warehouses cannot be simply eliminated from the supply chain because the alternatives require strict management of stock movements. Mistakes are usually costly and may even wipe out gains made by adopting the system. These systems also introduce tight interdependencies within the supply chain which assume all the parties act in each other’s interest. This means that although warehouses add unnecessary costs to the supply chain, they’re indispensable when a business has to consider factors such as effectiveness of their supply chain, security of the production inputs and even quality assurance.
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