Wisdom for Warehousing | The Optimal Role of Warehousing in Supply Chains and Business

Warehouse Nomenclature Warehouses are often named and referred to by the type of inventory they house. Raw material warehouses house raw material. Component warehouses; components. Work-in-process (WIP) warehouses; work in-process inventory. Finished goods warehouses; finished goods. Warehouses are also named and referred to the role they play in a supply chain. Distribution centers, fulfillment centers, cross docks, storerooms, stockrooms, staging areas, consolidation warehouses, and bonded warehouses are some examples. Warehouses may also be named and referred to by their location and service area (e.g. local, regional, national, global); their ownership (e.g. public, dedicated, private); and/or by their handling units (e.g. parts warehouse, bulk warehouse). Though there are these disparate names, all warehouses receive, store, pick, and ship product. From that perspective, most, if not all of the principles, practices, and optimizations we share will have application across the universe of warehouse types, roles, and sizes.

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