Warehousing plays a pivotal role in the supply chain by bridging the gap between production and consumption. Its key roles include:
Storage: Warehouses store products during periods of surplus production and release them during periods of increased demand.
Distribution: Warehouses act as distribution centers, ensuring that products are delivered to the right locations in the required quantities and at the right time.
Risk Mitigation: Warehouses provide a buffer against uncertainties such as supply disruptions, allowing businesses to maintain continuity in operations.
Value-Added Services: Many warehouses offer value-added services like packaging, labeling, and quality inspection, enhancing the product’s market readiness.
Demand Aggregation: Warehousing facilitates the consolidation of products from multiple suppliers, enabling economies of scale in transportation and storage.