Warehouse distribution

A warehouse could be broadly defined as a distribution center for a set of products. It is a commercial building used by manufacturing companies for storing goods. Large buildings situated in highly industrialized areas in cities and towns are often used as warehouses. Warehouses are stocked with products to be re-distributed to retailers or wholesalers for order fullfilment.

How does a warehouse work?

The key role of a warehouse is to receive large quantities of products and ship small quantities to individual stores. Generally, a distribution network has many centers spread throughout a commercial market. The suppliers ship truckloads of products to the distribution center which then stores the product. When the demand for the product arises, they will ship the required quantity to the retailers.

Another important role of a warehouse is storage. The retailer usually stores only few items of a specific product in order to preserve space, cut down inventory costs and maximize the variety. This also enables the retailer to ship the replacement of a product almost as soon as it is sold.

Two methods of distribution

There are two most effective methods of distribution: firstly, directly shipping a full truckload of products from the manufacturer to the retailer and secondly, to ship a full truckload to a distribution center, unloading the pallets of products and re-loading the pallets onto trucks that are sent to different stores. Modern warehouses are well-equipped with complicated network of automated equipment for de-palletizing and re-palletizing products.

Warehouse Management

The Warehouse Management System (WMS) is a database driven computer program that coordinates the direction and tracking of materials in the warehouse. It enhances inventory management, improves warehouse facility, calculates item velocity, provides picking, packing and replenishment tools, ensures billing accuracy and boosts profitability in business.