Warehouse

Warehouses serve as vital hubs in the flow of goods within a logistics system. They are responsible for efficient storage and supply as well as rerouting of goods.

From storage site to modern hub
Even in the Stone Age, caves served as places to temporarily store goods. Warehouses still fulfill this function today. But they also do much more. A warehouse, for example, can also be used to redirect goods to other routes within the network - even without having to store any goods at all. Depending on the function, various types of warehouses have been developed to perform the job.

Warehouse functions

Generally speaking, a warehouse is a hub in a logistics network where goods are temporarily stored or rerouted to a different channel in the network.
A basic distinction can be made among supply, handling and distribution warehouses. However, mixed forms may also be used.

Supply warehouse
Supply warehouses are usually part of the production operation and are used to store raw materials, auxiliary supplies and other resources needed for production as well as semi-finished products and finished goods used during particular seasons.

Transshipment warehouse
Transshipment warehouses house goods for short periods between their transfer from one means of transportation to another. They are frequently operated by logistics providers and retail companies.
With so-called cross-docking, manufacturers send goods that have been pre-picked for particular retail outlets to the retailer’s warehouse. Here, shipments from various manufacturers for the respective retail outlet are batched and then delivered together. This dispenses with the need to pick goods bound for separate retail outlets in the retailer’s central warehouse. All or most of the inventory is eliminated as well.

Distribution warehouse
The composition of the flow of goods is changed in the distribution warehouse. Distribution warehouses are classified into central, regional and local distribution warehouses depending on the area they serve. Central distribution warehouses are generally referred to as central warehouses, while decentralized regional or local distribution warehouses are called supply or delivery warehouses. In supply warehouses, goods from various suppliers are collected and distributed to one or more production or retail operations. In delivery warehouses, goods from production are stored before being delivered to customers.

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