| Warehousing is an important function of physical | | | | of a central computer. The computer reads store |
| distribution, particularly when a manufacturer | | | | orders and directs lift trucks and electric hoists to |
| produces consumer goods. A commercial building for | | | | gather goods according to bar codes, move them to |
| the storage of goods is known as a warehouse. | | | | loading docks and issue invoices. These warehouses |
| Some inventory is kept at or near the plant, and the | | | | have reduced worker injuries, labor costs, pilferage, |
| rest is in warehouses in other locations. A company | | | | and breakage, and improved inventory control. |
| can own private warehouses and also rent space in | | | | The optimal location of a warehouse or warehouses |
| public warehouses. Strong warehouses store goods | | | | is decided considering minimal transportation costs. |
| for moderate-to-longer time periods. Distribution | | | | Customer services, levels of inventories and company |
| warehouses receive goods from various company | | | | warehouse versus public warehouse are some of the |
| plants and suppliers, and move them out as soon as | | | | issues to be decided by logistics management. In |
| possible. Some warehouses provide facilities like cold | | | | some large companies, warehouses are operated by |
| storage. There are specialized warehouses for | | | | the sales department, or arrangements are made |
| agricultural products. | | | | with public warehouses. |
| The older, multistoried warehouses have slow | | | | Suitable locations and an adequate number of |
| elevators and inefficient material-handling procedures. | | | | warehouses maintained by an organization can give |
| These older systems are receiving competition from | | | | the customer better service and can also result in a |
| newer, single-story automated warehouses with | | | | reduction in transportation costs if the goods are |
| advanced material-handling and | | | | moved by wagonloads, truckloads, or barge loads |
| warehouse-management systems under the control | | | | into the warehouses. |