In many industries, products flow through two types of warehouse: storage and distribution warehouse. A distribution warehouse is primarily established for movement of goods rather than for storage. The general function of a warehouse distribution facility is to have product on hand to serve the ultimate user/distributor at a readily available distance and in a short time period. So distribution warehouse can minimize the transportation costs between the plant and its markets. Products moving from distribution warehouses can reach local markets in varying lengths of time, depending on the distance to the local market and the quality of available local transportation service.
A firm may use its own warehouses or rent space in public warehouses or both for their distribution center. Handling and distribution companies, known as handling houses, provide services for the warehouse storage of goods and distribution upon request. This is a great alternative if your business requires warehousing facilities but you are not necessarily prepared to invest capital into leasing the space and purchasing the equipment needed to run it.
A firm may use its own warehouses or rent space in public warehouses or both for their distribution center. Handling and distribution companies, known as handling houses, provide services for the warehouse storage of goods and distribution upon request. This is a great alternative if your business requires warehousing facilities but you are not necessarily prepared to invest capital into leasing the space and purchasing the equipment needed to run it.
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