Final answer:
Warehouses play a vital role in the storage and distribution process, allowing companies like Amazon to achieve economies of scale and maintain lower costs per sale by using highly automated, low-rent facilities.
Step-by-step explanation:
The role of warehouses is crucial in the supply chain process, serving as storage facilities for goods until they are distributed to the end users. Large companies like Amazon utilize vast and highly computerized warehouses to achieve economies of scale, by storing their products in low-rent locations globally. These sophisticated warehouses employ automation through robots and require a relatively low-skilled workforce, consequently keeping costs per sale low.
Warehouses are integral to companies as they allow for an efficient inventory management, aid in fulfilling orders swiftly, and contribute to minimizing overhead costs, enhancing a company's competitive edge. Furthermore, they facilitate the creation, distribution, and management of products, which directly impacts the movement of products, money, and people, as outlined in standards like WG.12A.