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Warehousing

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Distribution

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Abstract

The key to understanding warehousing in the 1990s is to perceive it as one of several business functions that are integrated together to provide the enterprise with a unique competitive advantage. In the past, warehousing was looked upon as a tactical function concerned basically with the management of inventories. The role of warehousing was to ensure that the firm possessed sufficient stock not only to respond to anticipated customer requirements but also to act as a buffer guarding against uncertainties in supply and demand. As such, the operating philosophy was to search for the appropriate tradeoffs between storage, purchasing, and transportation costs on the one hand, and customer serviceability targets on the other. But, when it is considered that for many distributors, warehousing and delivery represent core value-added services, the need to reposition warehouse functions as fundamental strategic sources of competitive differentiation and marketplace leadership has grown. Instead of a lumbering giant accounting for the bulk of the firm’s costs and manpower requirements, computerization, automation, and Just-In-Time (JIT) philosophies accentuating information flows and promoting quality and the elimination of wastes have drawn the warehouse function within the sphere of competitive strategy. Effective warehousing in the 1990s requires the enterprise to take an integrative perspective focused on Quick Response and increased value-added services while simultaneously reducing costs and impediments to service leadership.

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  1. Oakton Community College, USA

    David Frederick Ross

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© 1996 Chapman & Hall

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Ross, D.F. (1996). Warehousing. In: Distribution. Springer, Boston, MA. https://doi.org/10.1007/978-1-4684-0015-1_11

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  • DOI: https://doi.org/10.1007/978-1-4684-0015-1_11

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4684-0017-5

  • Online ISBN: 978-1-4684-0015-1

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