TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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A warehousing facility is an indoor building specifically designed for storage of goods. Warehouses are frequently used by importers, manufacturers, exporters, suppliers, transport companies, customs, and other shipping organizations. They are typically large open buildings located in commercial centers outside of towns, cities, or rural areas. The main purpose of a warehousing facility is to provide secure storage for finished goods that are for sale to customers. Warehouses function as warehouse and distribution centers for the management and shipment of inventory. This helps in the efficient management of inventories.

Supply chain management refers to the process of collecting, processing, producing, marketing, and transporting goods that pass through various phases of the supply chain. There are many private warehouses and distribution centers that warehousing goods are part of the supply chain. Private warehouses are for the temporary storage and transportation of goods, while production Warehouses are designed for long-term storage and transportation of finished products. Supply chain management includes a variety of activities such as product creation, product engineering and design, and testing of products and components. Supply chain management helps in efficient utilization of resources and decreases waste both economically and environmentally. A warehouse should have enough room to move goods back and forth and to do simple pick and pack tasks.

Supply chain management, also known as production tracking system, and order fulfillment are important aspects of Warehouse Management. Warehouse management helps to maximize the productivity of a warehouse by improving its order fulfillment operations and optimizing its capacity. Order fulfillment is an aspect of management that involve both product inventory packaging and labeling, and customer information. Private warehouses and distribution centers that are part of the supply chains are designed to improve the efficiency of order fulfillment by consolidating warehouses, improving productivity, and reducing costs.

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