Warehousing

Warehousing is the process of receiving, storing, and distributing goods within a dedicated facility as part of the supply chain. It provides secure storage, protects inventory, and enables timely order fulfillment.

A warehouse serves as a stockholding hub, balancing supply and demand. Core activities include receiving and put-away, storage and inventory control, order picking, packing, labeling, staging, and shipping. Returns processing and some value-added services may also occur.

Types include private warehouses owned by manufacturers or retailers, public warehouses available for hire, and contract warehouses operated by third-party providers. Some facilities specialize in cold storage, hazardous materials, or other niche needs, and layouts vary from high-bay racking to cross-docked configurations.

Technology and processes: A warehouse management system coordinates operations from receiving to shipping. Tracking relies on barcodes or RFID. Automation such as conveyors, sorters, automated storage and retrieval systems, and robotics is used in many facilities. Inventory practices like cycle counting and ABC analysis help maintain accuracy.

Performance and costs: Key metrics include inventory accuracy, order fill rate, on-time shipments, and inventory turnover. Costs include real estate, capital equipment, labor, energy, maintenance, and shrinkage. Automation and data analytics are used to improve throughput and efficiency.

Trends: E-commerce and omnichannel fulfillment have driven demand for varied storage formats and faster throughput. Automation, robotics, and advanced analytics are expanding capabilities, while sustainability and safety initiatives address energy use, waste, and worker safety.