Warehousing and warehouse management are part of the logistics management system, which in itself is part of the supply chain. Warehousing plays a vital role in the supply chain process. A warehouse is a large, spacious place that is used for the storage or accumulation of goods. Storing goods throughout the year and releasing when they are needed creates time utility. Although this is viewed simply to store goods, warehousing plays a fundamental role in the logistics system. Inbound functions assist to prepare for storage as well as outbound functions pack and ship orders, resulting in benefits for both the business and customers.
Storage Facility: This brings higher returns for your business. Manufacturing or the purchasing of goods in bulk always makes sense in a business point of view.
Convenience: Distribution is an important part of any business, customers should never experience out of stock situations. Having one central warehouse that stores all your goods feeding your distribution process will have you constantly in control of the stock available as well as what is needed in the near future. This is called safety stocking, ensuring your business doesn’t run into unexpected problems such as faulty stock or shipment delays.
Additional Revenue: Owning your own storage facility could provide revenue by leasing out warehouse space. The ability to manufacture or buy goods in bulk also allows for greater revenue returns. These are both great ways to save money and expand your business.
Distribution: Warehousing and the placement of the warehouse can directly impact on your distribution. The further away your storage facility or warehousing is situated from your suppliers or manufacturers, the more your distribution costs will rise. Strategic placement of the facility can dramatically affect your transportation costs, in turn affecting your own product. Alternatively, some countries such as Germany use warehouses as their storage and retail facility.
These are just a few of the ways that warehousing can directly affect your business and the supply chain within it. Bridgewater Logistics is an industry specialist in providing affordable warehousing solutions in South Africa that can be used to benefit you in the ways listed above as well as many more ensuring the best for your business.