In many industries, the term warehouse is used to describe various physical structures that perform numerous functions and activities. Studies and evaluations of supply chains throughout the beverage arena reveal this also is true for the beverage market.
Even though warehouse structures might be called sales centers, distribution centers, dispatch stations and other names, the specific terminology becomes very important. This is because two main factors are involved and should be accurately defined: what functions are preformed and what is the cost of execution? Most supply chain managers usually create a broad activities outline to track large segments for control and cost containment. However, within those variable activities, there appears to be questions about function and cost. In other words, what are the activities in the function and what does it cost? Realistically, focus on this factor can be a key to successful operations.