The Importance of Warehousing in Logistics
First, let’s look at what warehousing is:
A warehouse is a building dedicated to storing goods and cargo for product-based businesses. Warehouses are generally large, plain buildings located in industrial parks along major highways or transport routes. They are strategically located to make distribution more efficient and to minimize transportation costs.
Warehousing is the physical act of storing the goods until they are ready to be packaged and distributed. To keep track of goods and cargo a warehouse management system is implemented. Warehouse management systems are software applications that help track goods, optimize inventory and provide support to all warehousing staff.
Why it’s important for all product-based businesses:
A product-based business is a business that sells physical products, such as raw materials, consumer products or agricultural products. Warehousing is a fundamental part of the supply chain and has a direct impact on how your business distributes its products. Not only does a warehouse store your products in a safe place but it also packages your products and ships them out when needed, ensuring your orders are delivered on time.
With an efficient warehouse management system, your warehouse will also keep track of the quantities of each product stored with them and notify you when products need replacing, ensuring your business is never left without stock or with disgruntled clients. Warehouses communicate frequently with all major retailers along supply chains to ensure that they do not run out of stock and receive fresh products routinely.
The role warehousing plays in Logistics:
The critical role warehousing plays in Logistics is often overlooked due to its perceived simplicity, however, warehousing affects much more than where the goods are stored. Here are some ways warehousing can affect a business’s logistical success:
Controlling Inventory: Warehouses track quantities of stock, monitor the supply and demand of each item as well as helping a business stay organized with their sophisticated warehouse management systems.
State of the Art Security: Warehouses are monitored 24/7 with guards and CCTV cameras. It is a warehouse’s job to protect its clients’ products and is insured should anything be damaged or stolen, thus protecting a business’s assets.
Save on Expenses: Costs such as transportation, delivery and shipping are massively reduced when you make use of an established logistics company. They can share costs between businesses when moving smaller loads and do not have to outsource drivers or trucks as they have their own.
Increased Accessibility: With products located in a central location they are easier to pack, distribute and store. It is also easier to mix products and consolidate orders.
Fewer Staff Members: When you outsource your warehousing they have their staff members dedicated to tracking, monitoring, packing and storing the products in their care. Meaning you do not have to hire your staff to organize your stock.
Warehousing Affects your Reputation: Many forget that when an emergency occurs such as faulty stock or damaged goods it is the warehouse that comes to the rescue by supplying new stock. Having an experienced warehousing team on your side can determine how quickly your business can rectify errors and appease angry clients.
Having a well-established warehousing team at your disposal can directly affect your business’s growth and profitability. We at Bridgewater Logistics have built up a solid reputation of being one of the best warehousing facilities in Southern Africa, a reputation we plan to keep for many years to come. To find out why we have the reputation we do chat to one of our consultants today and see how we can help you: