Effective Warehouse Management system can maximize the servicing of orders on time and in full, minimize the cost of warehouse, and maximize inventory turnover (i.e. minimize the time that materials stay in the warehouse). While effective warehouse management system is in place, organization can minimize response time to demand, and errors in dispatches. It also helps to preserve quality, value and security of stored items.
On the other hand Distribution Management means the management of resources and processes used to deliver a product from a production location to the point-of-sale, including storage at warehousing locations or delivery to retail distribution points. Distribution management also includes determination of optimal quantities of a product for delivery to particular warehouses or points-of-sale in order to achieve the most efficient delivery to customers. Efficient distribution management system is needed to ensure the right products are delivered to the right location on time and at a good cost. It includes the tasks of transportation, stock control, warehousing and monitoring the flow of goods.
One must remember that Inventory plays important role for both warehouse and distribution management. Inventory is a list of goods and materials, or those goods and materials themselves, held available in stock by an enterprise. An organization's Inventory can appear a mixed blessing, since it counts as an asset on the balance sheet, but it also ties up money that could serve for other purposes and requires additional expense for its protection.