Warehousing means storing goods intended for sale at a dedicated location. In addition to storage, a warehouse can function as a fulfillment and shipment hub, an assembly line facility, even as rental space for other businesses. Warehousing has the following advantages: improved inventory accuracy, reduced overhead, better staffing levels, protection of goods through security and climate control, good location for shipping and receiving, and better flow of goods from manufacturers to consumers. The term “warehouse logistics” refers to managing, planning, and organizing operations within a warehouse.

There are private warehouses (owned by a company to store its products), public (owned by governments and rented to private firms), co-operative (owned by co-ops and rented to private firms), and distribution centers that receive and ship products. Although the terms “warehouse” and “distribution center” are often used interchangeably, a warehouse is a storage hub, while a distribution center both stores and fulfills orders.