In the past, warehouses were referred to as cost centers and rarely adding value. But the
increasing need for transfer of products across cities, countries and continents resulting
from movement of production to the Far East, the growth in e-commerce and increasing
demands from end users have seen a change about the perception of warehouses. They
are vital components within today's supply chain. (Richards 2011, 7.) They form the
integral part of the supply chain in which they operate, and so trends such as increasing
market volatility, product range proliferation and shortening lead times, all have effect
on the roles the warehouse is required to perform. Warehouses are most likely involved
in various stages of sourcing, production and distribution of goods, from the handling of
raw materials, work-in-progress through to finish products.