Supply chain management process and warehouse management are part of the logistics management system,which in itself is part of the supply chain process management. Warehousing plays a vital role in the supply chain management process.
A warehouse is a large, spacious dwelling that is used for the storage/accumulation of goods, throughout the year and releasing when they are required creates time efficacy. Warehousing inbound functions assist to prepare for storage and outbound functions pack/ship orders,resulting in profits for both the business and the customers.
Exporters, traders and producers are the common clients of warehousing service.Raw materials and finished goods alike are kept in warehouses.E.g. the cheese and wine-making industries require extensive time to produce their products, a warehouse is an excellent place for their products to mature. Thus, ensuring sufficiency of supply.
Warehousing may also accomplish the completion of goods before distribution.The assembly and packing of the goods can be done in the warehouse.By doing so, the product cover will still look fresh & appealing upon delivery. If the goods are packed before bringing them to the warehouse, the packaging may get damaged en-route to the location.
Some of the features of the supply chain management process in warehousing are: -
1. Storage Facility: -
This brings higher returns for your business. Manufacturing or procurement of goods in bulk always makes sense from a business opinion.
2. Convenience: -
Warehousing aids in the supply chain process management by helping in distribution which 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 soon. A process called safety stocking, where ensuring your business does not run into unexpected glitches such as faulty stock or delivery delays.
3. Additional Revenue: -
Owning your storage facility could provide revenue by leasing out warehouse space. The ability to manufacture or procure goods in bulk also allows for better revenue returns. These are both wise ways of saving money and expanding one’s business.
4. Distribution: -
Warehousing and the location of a warehouse can directly impact on your distribution. The farther your storage facility or warehouse from your suppliers or manufacturers, the higher would be the distribution costs of your supply. Strategic placement of the facility can dramatically affect your transportation costs, in turn affecting your product. Alternatively, some countries use warehouses as their storage and retail facility.
Thus, it is safe to say that warehousing and distribution go hand-in-hand in ensuring a more cost-effective method of delivering goods.
These are a few of the many ways that warehousing can directly impact your business and the supply chain within it.AWL is an industry specialist in providing affordable warehousing solutions in India whose services can be availed to benefit you& your business in these ever-evolving times.
