Warehousing & Supply Chain

Warehousing Basics: Types and Functions

5 min read
Warehousing Basics: Types and Functions

Warehousing is more than storage. A warehouse receives, stores, picks and dispatches goods, acting as a buffer that keeps supply chains flowing smoothly between production and demand.

What a warehouse does

  • Receiving and inspecting incoming goods.
  • Storing inventory safely and accessibly.
  • Picking and packing orders for dispatch.
  • Managing stock levels and dispatching shipments.

Main types of warehouse

  • Distribution centre: high-throughput hub for moving goods onward.
  • Fulfilment centre: picks and packs individual e-commerce orders.
  • Bonded warehouse: stores imported goods before duty is paid.
  • Cold storage: temperature-controlled space for perishables.
FAQ

Frequently Asked Questions

What is the difference between a distribution centre and a fulfilment centre?
A distribution centre moves goods onward in bulk to stores or other facilities, while a fulfilment centre picks and packs individual orders, typically for e-commerce.
Is a warehouse only for storage?
No. Beyond storage, a warehouse handles receiving, inspection, picking, packing, inventory management and dispatch, keeping the supply chain flowing.