Activity

Warehousing and distribution are the modern-day terms for the storage, transportation and receipt of finished goods. The two words are often interchanged and used interchangeably. While one is responsible for the movement and storage of products from point A to point B, the other manages the distribution and the delivery of same to customers. The two are usually performed by separate entities, although they often work closely together.

fulfillment involves the transportation, storage and receiving of goods. This is the ‘in-store’ part of warehousing. Warehouses combine both the warehousing and distribution function. fulfillment consists of a number of different types of buildings or spaces that house different types of goods. These include loading docks, truck loading bays, forklift depots, vehicle lifts and conveyor systems. Warehouses are also commonly referred to as depot warehouses or point-of-sale (POS) warehouses.

Warehouses may be operated manually or electronically. In manual warehousing and distribution, employees are responsible for loading and unloading the goods, and storing them in the warehouse. Electronic warehousing and distribution involve an electronic system that is used to stock the goods and manage the distribution points. fulfillment of these types of warehousing and distribution are growing rapidly in popularity due to their time-saving benefits and environmentally-friendly aspects.

Distribution involves moving the goods from the warehouse to customer locations. Some warehousing and distribution simply refer to the movement of finished goods from point A to point B. Other forms of warehousing and distribution include storage warehouses, truck stops, office complexes, retail sales offices, and health care facilities. A number of organizations have evolved around the idea of warehousing and distribution to service a larger number of customers at a lower cost. Such companies include supermarkets, malls, and hotels.

Warehouse capacity must be considered when estimating the number of goods to be handled and moved from point A to point B. For instance, if the amount of goods to be delivered to a destination in a month is twenty, the warehouse capacity required will be approximately three times more than the average monthly load. Companies should consider factors such as loading efficiency and ramp loading efficiency when determining warehousing and distribution costs.

fulfillment of goods is another aspect of warehousing and distribution that must be considered. The transport costs are affected by factors such as fuel costs, customs duties, and insurance premiums. Other factors such as truck driver’s wage, breakage, tips, and bonuses may also affect the transportation costs of the goods. Trucking companies can help to reduce transportation costs by ensuring that they have enough trucks on hand and that drivers are paid well.

The effectiveness of the warehousing and distribution chain has become critical in managing supply chain management. The increase in globalization has meant that most warehousing activities now take place at the shipping docks of the various shippers. At sea, distances between distribution points are increasing due to increased competition. At land, warehousing activities can reduce the transportation time and costs by combining production and distribution. Warehouses should be designed to optimize the efficiency of the entire warehousing and distribution process.

Companies should also consider improving the distribution systems used by their warehousing and distribution partners. For example, improved distribution systems will allow companies to reduce storage costs and improve inventory tracking. Improved packaging methods can reduce travel time between warehouse locations and improve efficiency at the warehouse level. Improved warehouse lighting is essential for the health and safety of the workers, as well as reducing greenhouse gases. Companies should work closely with their warehousing and distribution partners to implement improvements.