The role and function of warehousing logistics

　　Overview of warehousing in supply chain

　　With the development of logistics to supply chain management, enterprises are increasingly emphasizing the unique role of warehousing as a resource provider in the supply chain. Warehouses are no longer just warehouses for storing goods. The change of the role of warehousing, in a nutshell, is the transformation of the warehouse to the distribution center. The essential difference between the traditional warehouse and the distribution center is that the warehouse focuses on the management of space, while the distribution center focuses more on the management of time (that is, the speed of goods turnover), so the essential difference between the two is that the distribution center manages both space and time.

　　Warehousing plays a role in logistics and supply chains

　　First of all, warehousing is the inventory control center in logistics and supply chain. Inventory cost is one of the main supply chain costs. In the United States, inventory costs account for about one-third of total logistics costs. Therefore, inventory management, inventory reduction and inventory cost control have become the main tasks for warehousing to reduce the total cost of the supply chain under the supply chain framework.

　　Secondly, warehousing is the dispatching center of logistics and supply chain. Warehousing is directly related to the efficiency and response speed of the supply chain. Modern warehousing is expected to be more than 99% accurate in handling items and to be able to respond quickly to special needs. Same-day delivery has become a way of doing business for many warehouses. Customers and warehouse managers aim to continuously improve accuracy, timeliness, flexibility and responsiveness to customer needs.

　　Thirdly, warehousing is the value-added service center in logistics and supply chain. Modern warehousing not only provides traditional storage services, but also provides value-added services such as post-assembly, packaging, coding, labeling, and customer service related to the delay strategy of the manufacturing industry, improving customer satisfaction and thus improving the service level along the supply chain. It can be said that most of the value-added services in logistics and supply chains are reflected in warehousing.

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