This
chapter
examined the key rationale for warehouses and summarized the different
roles that they
may perform.
It highlighted some wider industry, business and regulatory issues that
impact on
the design and management of warehouses. These must
be taken into account if warehouses are
to function effectively within
the wider context of the supply chain. The normal
activities that take place within inventory holding and non-inventory holding
warehouses were
described, together with a typical cost breakdown of a warehouse operation.
Finally,
the importance of packaging and unit loads was explored and a brief
introduction to some unit load types was provided.
In conclusion,
warehouses are key components of many supply chains,
and their roles and objectives should
be determined by the overall context within which they operate. They
should integrate closely with the other components in the
supply chain. They are expensive and
should be
well designed and effectively managed,
as the way they operate will have an immediate impact on
both customer service and costs.
