Importance of Warehousing

Visit our website if you seek for Self storage to rent. We offer you some storage with affordable price. Warehousing traditionally supplied products storage (referred to as inventory) during all stages of the logistics process. Two basic types of inventory can be placed into :

– Supply Physical: raw materials, components and parts
– Physical distribution: finished goods.

Why do companies need to have inventory in the warehouse? Traditionally, warehousing products have occurred for one or more of the following reasons:
– Achieving transport economics
– Achieving economies of production
– Take advantage of discounts on quantity purchases and forward purchase
– Keeping a supply source
– Support the company’s customer service policy
– Meet the changing market conditions (eg seasonal fluctuations in demand, competition)
– Overcoming differences in time and space that exist between manufacturers and customers
– Completed the overall logistics cost at least commensurate with the level of customer service desired
– Supports real-time program for suppliers and customers
– Provide customers with product mix is not a single product on every order
– Provides temporary storage of materials to be disposed of or recycled (reverse logistics)

Warehouses can be used to support manufacturing, to the product mix of several production facilities for delivery to a single customer, for breakbulk or split the delivery of the products into smaller shipments to meet the needs of many customers, and to merge or consolidate shipments to shipping a higher volume single.

Warehousing used as a point of ‘flow-through’, or skipped (eg scheduled direct delivery to the customer), as organisations increasingly substitute information for inventory, purchasing smaller quantities and use the warehouse as a consolidation point for receiving the transport fare purchased and service levels.

With a pull system, there is no need for the reservoir. Instead, warehousing serves as the centre of the flow-through, offering enhanced services to the inventory position closer to customers.