Similarities And Differences Of Warehouse versus Distribution Centre ( Usefulness and Constraints )

Good news, bad news.

Keeping it simple:

Usefulness

1. This topic helps us to understand what exactly is a warehouse and distribution centre.
2. This topic also helps us to differentiate between a warehouse and distribution centre.
3. This topic helps us to understand more about value adding services and how customer focused it is.

Constraints

1. Although this topic differentiates a warehouse and distribution centre, in DCM the terms “warehouse” and “DC” are being used as though they mean the same thing, therefore this topic has its limit in applying in DCM.
2. This topic only touches mainly on the differences of warehouse and distribution centre, it does not include other important parts of DCM, basically its just the tip of the iceberg of DCM.

That's all folks!

Similarities And Differences Of Warehouse versus Distribution Centre ( Similarities )

To warehouse or to distribution center? That is the question.

The distribution centre is a bigger term of a warehouse, just like supply-chain compared to logistics, that is why a warehouse cannot be differentiated from a distribution centre based on appearance.

Therefore the similarities between a warehouse and distribution centre is actually everything about a warehouse. They are similar because both receive and store goods until the products are demanded by customers before they are being shipped out.

Both warehouse and distribution centres try to minimise overall operating cost as much as possible and try to maximise the usage of space. They also aim to maximise effective use of labour and equipment. Both warehouse and distribution centre needs to provide a safe and secure environment for both goods and employee by minimizing the movement of goods.

Both also play a major role in most businesses, for almost all businesses save service industries need space for their inventory and stock. Both have been essential in our business world and will continue to play an important role as we head to the future.

With all that said, apart from the obvious similarities such as they are both buildings, have four walls and a roof, and can store everything ranging from underwear to guns, the thin line between the two are quite clear, even with all these similarities.

Similarities And Differences Of Warehouse versus Distribution Centre ( Technology-driven )

A view on the technology used in a distribution center handling liquor. God bless.

The distribution center of today must have in place state-of-the-art order processing, transportation management and warehouse management systems if it is to scan bar codes, plan loads, process orders and locate product efficiently.

As seen in the video. this does not only include machines such as conveyor belts and ASRS systems, but also the latest software such as IntelliTrack and DeCSS when handling those orders and to keep track of the products.

One of the them available in the market now is the RFlD-based resource management system (RFID-RMS) which is designed in helping users to select the most suitable resource usage package for handling distribution center operation order by retrieving and analyzing useful knowledge from a case based data warehouse for solutions in both time saving and cost effective manner. The proposed system, which is suitable for usage in warehouse operating environment, enhances the effectiveness in formulating resource usage package by integrating the case-based reasoning techniques and automatic data collection technique, namely, radio frequency identification (RFID) through applying RFID-RMS in GENCO distribution system, one of the largest international distributions and logistics based company. The utilization of warehouse resource is maximized while work efficiency is greatly enhanced.

The level of technology for distribution centers have in recent times risen sharply and will continue to do so in the future.

Similarities And Differences Of Warehouse versus Distribution Centre ( Customer Focus )

While a warehouse is focused on the most efficient and cost-effective methods of storing products within its walls, a distribution center's sole mission is to provide outstanding service to its customers. Some distribution centers are built with specific conditions set to store specific items including fish, ice cream and furits and vegetables. Traditional warehouses have no such facilities to store items with specific conditions.















Tropical Fish Distribution Center with necessary specific conditions.


A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be re-distributed to retailers, wholesalers or directly to consumers. A distribution center is a principle part, the "order processing" element, of the entire "order fulfillment" process. Distribution centers are usually thought of as being "demand driven'.

-Wikipedia.org

A worker in a distribution center handling ice cream products in a low temperature setting.

Similarities And Differences Of Warehouse versus Distribution Centre ( Value-Added Services )

An example of what gets on in a distribution center. ( Transportation, Consolidation, Product Mixing )

Apart from storage services, distribution centers provide a range of services, whether those customers are external or internal company departments and functions. Such services include transportation, cross-docking, order fulfillment, labeling and packaging. Also, a well-organized and -managed distribution center will provide whatever services are necessary to complete the order cycle, including order processing, order preparation, shipping, receiving, transportation, returned goods processing and performance measurement.

Value-Added Services:

• Transportation & Freight Services
  
• Freight forwarding & Customs Clearance
  
• Consolidation and Breakbulking
  
• Product Mixing
  
• Contingency Protection
  
• Crossdocking/Transloading
  
• Product assembly/ Postponement
  
• Kitting/Pre-assembly
  
• Private Labelling/Branding
  
• Specialty Packaging
  
• Security Storage of High Value Items
  
• Reverse Logistics
  
• Insurance

In the future, even more value added services are expected to be available in the DCs.

Similarities And Differences Of Warehouse Versus Distribution Centre ( Intro )

A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.

A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be re-distributed to retailers, wholesalers or directly to consumers. A distribution center is a principle part, the "order processing" element, of the entire "order fulfillment" process. Distribution centers are usually thought of as being "demand driven'.

Main differences include:

• A distribution center offers value-added services.
  


• A distribution center is customer focused.



• A distribution center is technology-driven.

In the next posts we will go deeper into the subject.

Raqin's (Awesome)

On the 28th of November, all of us at LOM had a day we'll always remember. I'm talking of course about the field trip to the ALB (Army Logistics Base).

The impressive 3 storey building with built-in floor area of approximately 60,000 square metres was owned by ST Logistics and had over 60 distribution points for RSAF from the building itself.


First off for the trip when we arrived was a talk about the storage-and-retrieval tech and distribution processes in the building, which allowed for maximum land use and efficient moving of goods in order to develop a seamlessly integrated supply chain.


After the talk, we were led to the Pallet ASRS (Automated Storage and Retrieval System). Used for receiving and picking, it was a fully computerised system which could be accessed and operated from different floors within ALB. The height of the first floor was high as it had to accomodate the high racks, as the ALB utililises a through flow concept along with SKU items being prepared for distribution near the loading bay.


From there, we headed on to the second floor where the vertical carousel system was applied. Optimizing warehouse height usage especially for stores requiring air conditioning and dehumidification, it was mainly used to store medical supplies and other necessities.


Lastly, on the third floor was the Bin ASRS, after which we were herded to the shipping area at level one.

One of the features shown was the Automatic Guided Vehicles. Based on a laser-guided system, it could easily change it's path and it allows unsupervised movement of goods both horizontally and vertically.


With all that said, after seeing the through-flow process, we all left for home our minds filled now with more than just dust.