Role of Warehouse in Manufacturing and Trading Sector

Warehousing may be defined as assumption of responsibility for the

storage of goods. By storing the goods throughout the year and releasing them
as and when they are needed, warehousing creates time utility.
A Warehouse could meant for storage or it could be Distribution Center
-Something like in a Hub & Spoke Setup that Logistics Business uses. As a
storage facility, the warehouse is used for supply management for cases where
there is long lead time required or/and the supply is coupled with high order
costs and low holding cost. It means when it is costly to order material and it is
less costly to hold it, we can use a warehouse for storage. It safeguards from
price hike, external factors like labor or transport strikes that can result in
delayed material delivery. 
A ware house meant to work like hub and spoke in a distribution setup in not
meant for storage. It is used to break-bulk the lots, sort and then make lots again
and then reseeding to desired location. There is no concept of storage for a such
a warehouse. You can consider warehouse of courier services working on such
concept. 

Warehouse Challenges:
Excess stock
In some cases, when we store stock from a single channel, it is possible that it
exceeds the acceptable level, which results in the accumulated goods becoming
more of an expense than an income. Using omni channel warehouses, rather
than warehouses sorted out by channel, helps lower the total inventory of the
supply chain, gives better visibility on the availability, and makes order
preparation and reverse logistics easier.
Lack of space
The problem of not having enough space is that the goods will keep on
accumulating inadequately, which may result in work accidents, time lost in
locating the products, and a loss of quality of the merchandise. 
To make the best use of the available space, we must improve the storage
systems, the default selection routes, and the layouts of spaces and shelves,
particularly in the reception area. Maximizing the vertical space increases the
efficiency of the picking and dunnage operations and lowers the costs of
inventory and operation.
Excess procedures 
This problem covers issues such as extra operations like rework, reprocessing,
and unnecessary handling due to defects, overproduction, or shortage. By
deleting unnecessary or obsolete steps, the process become more agile and fast
and we improve client experience, income, and margins.
Damaged products
When an item gets damaged, it generates a cost for warehouse operations. To
avoid this, we recommend using pallets that can be stowed, lifted, and wrapped.
Likewise, we suggest having safe, well-lit, and clean facilities to protect not
only our employees but also our products. 
Being unprepared for the demand
Internal and external factors such as seasons, weather, and the economy
contribute to the demand’s volatility. Having timely information may help
forecast the demand correctly and, thus, avoid an excess inventory that raises
storage costs, or a lack of stock that results in lost sales. 
Issues with human capital
The lack of training and integration of employees may delay the whole chain,
turn it inefficient, and create expenditures due to rework. Employees of the
logistics department, and those related to it, must undergo constant warehouse
management training and their Key Performance Indicators (KPIs) must reflect
and assess their productivity throughout the supply chain.