Characteristics and differences between warehousing and inventory

Characteristics of warehousing: 1. Consolidated shipment Consolidation is an economic benefit of warehousing. Through this arrangement, the consolidated warehouse receives materials designated for a specific amount from a series of manufacturing plants, and then consolidates them into a single shipment.

The benefit is that it is possible to achieve the lowest shipping rates and reduce congestion at customer collection stations.

2. Processing/delay warehouses can also be used to delay or delay production by undertaking processing or participating in a small amount of manufacturing activities.

3. Stocking The direct economic benefits of this warehousing service are subordinated to the fact that storage is vital to the chosen business.

Characteristics of inventory: shortening order lead time; stabilizing effect.

Finished goods inventory separates external demand and internal production like a reservoir; spreads ordering costs and adjustment preparation costs; prevents shortages; prevents interruptions; the demand side orders small quantities.

The difference between warehousing and inventory is as follows: 1. Different natures Warehousing refers to the general term for the storage and custody of materials through warehouses and warehouse-related storage activities.

It emerged with the creation of material storage and developed with the development of productivity.

Warehousing is one of the important links in commodity circulation and an important pillar of logistics activities.

Inventory is the goods actually stored in the warehouse.

It can be divided into two categories: one is production inventory, which is the inventory of grassroots enterprises and institutions that directly consume materials. It is stored to ensure the uninterrupted supply of materials consumed by enterprises and institutions; the other is circulation inventory.

, that is, the inventory of raw materials or finished products of production enterprises, the inventory of production authorities and the inventory of material authorities at all levels.

2. Inventory with different purposes refers to the management of the quantity of goods in the logistics process. The focus is on determining how to order, how much to order, and when to order.

Warehouse refers to the effective control of the receipt, receipt, balance and other activities of warehoused goods. Its purpose is to ensure that the warehoused goods are intact for the enterprise, to ensure the normal progress of production and business activities, and on this basis, to monitor the activity status of various types of goods.

Classification records.

A comprehensive management form that uses clear charts to express the quantity and quality of warehoused goods, as well as the current geographical location, department, order ownership and warehousing dispersion.

3. Different contents. Warehousing is the comprehensive management and control of material storage, form, area, layout, etc. Inventory is the requirement of attributes and the management and control of the quantity of materials themselves.