Warehousing & Logistics

Warehousing & Logistics

The terms warehousing and logistics are often coupled together as they are essentially two sides of the same coin, however many people get the terms mixed up.

Both warehousing and logistics fulfil functions within the supply chain of a business. On the one hand, warehousing focuses on the safe storage of goods within a building, whilst logistics is the functional aspect of the storage and delivery of goods stored in a warehouse. This is why it is vital to have both warehousing and logistics working in tandem to ensure these components collaborate effectively.

What is warehousing?

Warehousing is simply another term for a warehouse. It is a commercial building where goods or raw materials are stored for us in production or for sale. A warehouse provides a central location for receiving, storing and distributing raw goods or finished products.

The warehousing aspect of a business covers a number of elements such as unloading, receiving and checking inbound goods, storage, order picking and handling returns.

So what is logistics?

There are two sides to logistics, the inbound and the outbound flow of goods. Ultimately though, logistics is about the flow of goods (both raw and finished) in to, and out of a warehouse. Logistics covers transportation, internal movement, inventory and any other form of relevant information,

A large part of logistics is the end to end consumer requirements, ranging from the availability of goods through to the final delivery of products.

The importance of warehousing in logistics

Warehousing is essential in supply chain management as goods are transported from the maker to end recipient. The benefits of warehousing in logistics indicates that if a warehouse operation is ineffective, the entire supply chain may be immobilized, for example, a lack of goods, delays, or blockages. All logistical efforts performed within the scope of a warehouse should avoid the warehouse from becoming a bottleneck of the supply chain.