Warehouses include plant, regional, and local warehouses. They can be owned or operated by the supplier or wholesaler, or they can be public warehouses. A further classification is general warehouse or distribution warehouse.
A general warehouse is used for storing goods for long periods with minimal handling. A distribution warehouse is used for moving and mixing goods. Within the supply chain, warehouses have three roles: transportation consolidation, product mixing or blending, and service. The business of a general warehouse is storage. The business of a distribution warehouse is movement and handling; therefore, the size of the facility is less important than its throughput. At a distribution warehouse, goods are received in large-volume lots and broken down into small individual orders.
Used for long-term storage.
Used for short-term storage, consolidation, and product mixing.
A good example of the importance of distribution warehousing in support of e-commerce is Fingerhut's warehouse in St. Cloud, Minnesota. Employees ...