Warehouse Services – The Basics
Another key consideration is the transportation infrastructure. Obviously, logistical costs will be skyrocketing when the distribution center or warehouse is located a long distance from customers and suppliers.
Distribution Center Management – At a Glance
Essentially, a distribution center serves as a warehouse where products are stored. When an order comes in, the product is sent from a warehouse or the distribution center. The center takes care of managing outbound and inbound inventory and shipments.
The following are the responsibilities of a distribution center: order processing and receiving, putaway, pulling, replenishment and restocking, validation, sorting and picking, and lastly shipping.
In logistics, cross-docking is the procedure that involves direct loading of cargo carried by an incoming vehicle into a mode of transport that is headed out.
These are the benefits received by companies that engage in cross-docking: less warehouse space, less amount of time that it takes for the order to reach the customer, and fewer labor costs.
There are several kinds of cross docking available, which depend on the type of client, whether he is a wholesaler, retailer, or distributor. The whole process is as follows: First of all, multiple suppliers provide the warehouse with goods. Next, the goods are repacked and loaded to a different truck so that they can be delivered to the customer.
Fulfillment involves taking the order, executing it and preparing it to be delivered to the customer. This process involves warehouse pickup, labeling, and packaging.
Despite the variations, the basic services include warehousing & storage, order processing, product shipment, pick and pack, exchanges and returns, order administration, invoicing, & call center. This service is a key element of the supply chain as it involves direct contact with the customer of the client.