This document describes key aspects of distribution operations including warehouses, transportation, customer service, and inventory control. It discusses the main types of warehouses as public, distribution, or manufacturing. The main functions of a warehouse are receiving, storing, picking, and shipping products. It also outlines key steps in the order fulfillment process from receiving goods, putting them away, picking orders, staging them for shipping, and transporting them to customers. Maintaining accurate inventory records is important for fulfilling customer orders correctly.

1. Distribution OperationsDistribution Operations

2. WarehousesWarehouses
 PublicPublic – Companies who use warehouses to– Companies who use warehouses to
store product for their own usestore product for their own use
 DistributionDistribution – Companies who buy and sell a– Companies who buy and sell a
product to a wide customer base.product to a wide customer base.
 ManufacturingManufacturing – Companies who– Companies who
manufacture a product to sell to an end usermanufacture a product to sell to an end user
for distribution or applicationfor distribution or application

3. OperationsOperations
 WarehouseWarehouse
 TransportationTransportation
 Customer ServiceCustomer Service
 Inventory ControlInventory Control

4. WarehouseWarehouse
There are four functions of the warehouseThere are four functions of the warehouse
operation.operation.
 ReceiveReceive a product into the warehouse.a product into the warehouse.
 StoreStore the product in a designated location.the product in a designated location.
 PickPick the product and stage it for shipping.the product and stage it for shipping.
 ShipShip the product using company owned or LTLthe product using company owned or LTL
transportation services to thetransportation services to the
customer.customer.

5. ReceivingReceiving
Upon arrival the product is unloaded by forklift,Upon arrival the product is unloaded by forklift,
hand truck or pallet jack. The receiving personnelhand truck or pallet jack. The receiving personnel
checks physical product unloaded to what ischecks physical product unloaded to what is
known as a “Bill of Lading” this is a list of productknown as a “Bill of Lading” this is a list of product
being unloaded. Once the product is “Confirmed”being unloaded. Once the product is “Confirmed”
it is entered into the Company Database. Theit is entered into the Company Database. The
product is then put away in it designated “Binproduct is then put away in it designated “Bin
Location”.Location”.

6. Picking OrdersPicking Orders
Once orders are entered into the CompanyOnce orders are entered into the Company
database they go into a batch. The warehousedatabase they go into a batch. The warehouse
then releases the batch and prints all the ordersthen releases the batch and prints all the orders
in the batch to what is called a “Pick Ticket” Thein the batch to what is called a “Pick Ticket” The
Pick Ticket consists of the line items and quantityPick Ticket consists of the line items and quantity
of products the customer has ordered. In MOSTof products the customer has ordered. In MOST
cases the Pick Ticket will have a “Bin Location”cases the Pick Ticket will have a “Bin Location”
next to each line item of products indicating tonext to each line item of products indicating to
the warehouse puller where the product is locatedthe warehouse puller where the product is located
within the warehouse.within the warehouse.

7. Staging/LoadingStaging/Loading
After orders are pulled they are staged by the dockAfter orders are pulled they are staged by the dock
doors according to route and delivery order. Indoors according to route and delivery order. In
some cases after orders are turned in they aresome cases after orders are turned in they are
then double checked for accuracy prior to beingthen double checked for accuracy prior to being
loaded. Once all orders are pulled they are thenloaded. Once all orders are pulled they are then
loaded on to a truck in which case the orders areloaded on to a truck in which case the orders are
checked again for accuracy and loaded in order ofchecked again for accuracy and loaded in order of
route stop.route stop.

8. TransportationTransportation
The transportation function is to efficiently and accuratelyThe transportation function is to efficiently and accurately
transfer control of merchandise from the warehouse totransfer control of merchandise from the warehouse to
its customers. Often times the only real contact betweenits customers. Often times the only real contact between
the customer and the company is with its drivers.the customer and the company is with its drivers.
Consequently the customers opinion of a company mayConsequently the customers opinion of a company may
very well be based solely on their driver.very well be based solely on their driver.
It is the drivers responsibility to understand all DOTIt is the drivers responsibility to understand all DOT
regulations concerning paperwork and safe operation ofregulations concerning paperwork and safe operation of
a commercial vehicle.a commercial vehicle.
Commercial drivers are professional drivers, who have toCommercial drivers are professional drivers, who have to
have a special license to perform their job. Very muchhave a special license to perform their job. Very much
like Doctors and Airline Pilots must have special licenseslike Doctors and Airline Pilots must have special licenses
to perform their jobs.to perform their jobs.

9. Customer ServiceCustomer Service
The inside sales associate for the company, dealingThe inside sales associate for the company, dealing
with customer needs and demands.with customer needs and demands.
Often times the customer will phone their orders inOften times the customer will phone their orders in
to a customer service desk with is either centrallyto a customer service desk with is either centrally
located or located in every distribution location.located or located in every distribution location.
The orders are entered into a company databaseThe orders are entered into a company database
and then released into a batch. The batch is thenand then released into a batch. The batch is then
released to the warehouse in the form of a pickreleased to the warehouse in the form of a pick
ticket for the warehouse personnel.ticket for the warehouse personnel.

10. Inventory ControlInventory Control
The inventory control function is often timesThe inventory control function is often times
conducted within the warehouse system. Thisconducted within the warehouse system. This
function is to ensure the proper receiving andfunction is to ensure the proper receiving and
input of data into the company data base.input of data into the company data base.
Accounting for all product levels and ensuringAccounting for all product levels and ensuring
accuracy of product levels for customer orders.accuracy of product levels for customer orders.
Customer Service who is entering the orders canCustomer Service who is entering the orders can
only see what the database tells them theonly see what the database tells them the
inventory consists of, that is why this function isinventory consists of, that is why this function is
essential for the distribution operation toessential for the distribution operation to
effectively commit products to certain customereffectively commit products to certain customer
orders and demands.orders and demands.