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Warehousing in Logistics System

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Warehousing in logistics system

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The role of warehousing in logistics system

A warehouse is the building for storing goods while warehousing refers to the place or building where goods are stored. Warehousing plays the role of consolidation in the logistics system. Consolidation is the process of reducing the costs of transportation by consolidating the movement (Ross, 2004). Most of the companies supply their client with the same goods through a warehouse. From the warehouse; commodities are sent in a bulk shipment to the consumer. Therefore, rather than transporting the products in small shipment, it is economical having a consolidation warehouse.

Safety stocking is another role of warehousing. In meeting different contingencies like stock outs or delays in the transportation, safety stocks should be maintained (Voortman, 2004). Safety stocking ensures that the inbound site of production does not arise, and the needs and requirements of the consumers are fulfilled in time as planned. Docking also enables the issue of full shipment from different suppliers like manufacturer and the process of distributing directly to the consumer without storage in the warehouse (Ross, 2004). After receiving the shipment, the products are located to the respective clients and moved to the vehicle for onward delivery to relevant consumers.

Product mixing role enables the company to incur lower costs of transportation. The process of product mixing is mixing of commodities from various production or service facilities to consignment to one consumer (Voortman, 2004). The benefit of combining the product is reconfiguring transportation from the source to the destination (Ross, 2004). Furthermore, warehousing plays the role of protection against contingency like delays in

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