Warehousing is a part of a bigger logistics management system. It is small, yet important segments in the bigger supply chain management. Most people view warehouses as a place to store inventory. But many inbound functions that prepare items for storage and outbound functions that consolidate, pack and ship orders happen in the warehouse which is slowly getting focused as a switching facility rather than only a storage facility.
Today, a warehouse performs many important functions like receiving, identifying, sorting, storing/holding, selecting, retrieving and packing goods and dispatching them to the correct destination. Every logistics system aims to reduce cycle times and overall inventories, lower costs. Most importantly of all, it aims to improve customer service.