Topic 1.1: How a warehouse works

A warehouse stores goods. A distribution centre (DC) is a warehouse focused on moving goods quickly to stores or customers. Supermarkets, pharmacies, online stores and manufacturers all use them.

The flow of stock

Most warehouses follow the same basic steps:

1. Receiving — trucks arrive and goods are checked against what was ordered

2. Put-away — goods are moved to their storage location

3. Storage — goods are kept safely in labelled locations (bins, shelves or racking)

4. Picking — items for each order are collected from their locations

5. Packing — items are checked, packed and labelled

6. Dispatch — orders are loaded and sent to stores or customers, with the right documents

7. Returns — damaged, wrong or unwanted goods come back and are checked

Why accuracy matters

Every step has paperwork or system records. If a clerk captures the wrong quantity, the business thinks it has stock it doesn’t — or the other way round. That leads to empty shelves, unhappy customers and money lost. Accuracy is the number one skill in a warehouse.

Watch (free, optional)

Processes of Warehousing | Warehouse Processes Explained — 10 Min For Supply Chain