Wednesday, July 19, 2017

What are the basic functions of warehouse?

Warehousing has three basic functions, namely: movement, storage and information transfer.

The first major function, movement can be further divided into four handling activities: receiving, transfer, order selection and shipping. Warehouses receive shipments in bulk from several sources and using an automated or manual sortation system put together individual customer orders and ships them directly to the customers.

Warehouses also do the inspection and quality controls, which are an extension of the receiving process and are done when suppliers are inconsistent in quality or the product being purchased is heavily regulated and must be inspected at all steps in the process.
The second function of warehousing, namely storage, can be performed on a temporary or a semi-permanent basis. To achieve economies of scale in production, transportation and handling of goods, it is often necessary to store goods in warehouse and release them to customers as and when the demand occurs. The form of storage will depend on the size and quality of the items in inventory and the handling characteristics of the products or its container.

While the third major function information transfer occurs simultaneously with the movement and storage functions. Not only does the movement and storage of goods have managed in warehousing, but the information that goes along with the movement and storage also has to be managed.
What are the basic functions of warehouse?
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