Until recently, in traditional logistics, warehouse management systems were expected to manage warehouse and distribution operations within 4-walls. They were quite good at it, they developed various methods and processes of running the operations.
Especially retail and e-commerce companies are looking for new ways to provide a better and faster service to the consumers. This requires inventory and stocks to be also held outside the warehouse; such as vehicles, suppliers, stores. Therefore, warehouse management systems started offering functionalities to manage logistics operations outside the distribution centers.
The only requirement in this scenario is not monitoring stocks. There are various scenarios that should be handled such as drop shipping from suppliers, e-commerce order fulfillment from walk-in stores, delivering to the customers from vehicle inventory.
As a result, the stock can ben held anywhere throughout the supply chain. Therefore “inventory house” is the new term to define these locations within the supply chain.