Monday, December 23, 2013

Definition of finished goods warehouse

Warehousing is the first step in the supply chain and manufacturing activities in a typical manufacturing site. It is a system of storing products en route from their point of origin to their point of consumption.

The definition of the warehouse should optimize the use of physical space and employee time also should take into account unique storage requirements related to the goods themselves.

The finished goods warehouse function accumulates completed goods and provides a buffer between the manufacturing system and the customer.

One of the functions is to ensure that the supply channel possesses sufficient stock to satisfy anticipated customer requirements and to act as a buffer, guarding against uncertainties in supply and demand.

The warehouses system can extend stock control to the lowest level of detail that will direct distribution personnel to exactly where an item is physically located.

Most manufacturers and retailers perform some form of finished goods warehousing in order to assure the even flow of goods in the supply channel. Finished goods are kept in the finished goods quarantine area until test is done and approved for release.

This area is used for distribution of released goods as well as rejects and recalled products are specialty kept and treated in the warehouse.
Definition of finished goods warehouse
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