Warehouses are established in a log

Warehouses are established in a logistical system to lower total cost or to improve customer service. In some situations, the benefits of lower cost and improved service can be achieved simultaneously.
Warehouses create value for the processes they support. Manufacturing requires warehouses to store, sort, and sequence materials and components. Facilities used for inbound materials and components are often referred to as supply facing warehouses. Warehouses are also used to store, sequence, and combine inventory for consolidated shipment to next level customers in the supply chain. Warehouses used support market distribution are often referred to as demand facing warehouses. Demand facing warehouse requirements are directly related to manufacturing and market distribution strategies.