A storage unit in supply chain management refers to a designated physical space or facility used to house and organize inventory, materials, or products temporarily during various stages of the supply chain process.
These units serve as intermediate repositories where goods are stored between production, transportation, and distribution phases. Storage units play a critical role in maintaining a smooth flow of goods, optimizing inventory levels, and facilitating efficient order fulfillment. They enable businesses to buffer against supply and demand fluctuations, minimize disruptions, and ensure timely deliveries to customers. Properly managed storage units enhance inventory visibility, reduce costs associated with stockouts or overstocking, and contribute to overall supply chain efficiency and responsiveness.