Sunday, November 23, 2008

Why Use a Warehouse?

Have a great product to send to market, but you do not have the resources to receive, store, and distribute those goods? Then a warehouse facility may be the best method of distribution for your company. Warehousing provides an enormous advantage for industries that do not have the capital resources to establish a warehouse facility. Here are some of the benefits of warehousing.

Warehouses do not just offer a place to store products. They also offer services like:

  • Customer service personnel to manage orders, customer issues, and problem resolution
  • Inventory management to track just in time production and inventory movement
  • They track the movement of the inventory by monitoring when the merchandise arrives to the facility, where it is stored, how much of it is transported
  • A warehouse facility also offer a pass through for inventory that needs a drop off and pick up point for products that are on their way to a destination

Transportation plays a major role for warehouse facilities. Because of the sheer volume of goods that flow through warehouse facilities, the warehouse is able to negotiate transpiration costs and ultimately save money for the retailer

Warehouses specialize in different types of product services. Some warehouses may have the facility to store and transport frozen foods. Another may deal in soft goods such as clothing and offer steaming and pressing services, which prepare the product for display at the department store. Another warehouse may deal in the particular storage and transport of produce. It is critical to understand the maintenance requirements of your product, and how the warehouse will keep those products safe and viable through storage and transport.

Source:
Fulfillment Services

1 comment:

Unknown said...

Articles have more credibility when they are free of spelling errors.

A warehouse can be helpful in moving material around and storing it if you don't have room in your own facility.

That being said, the best solution is to not make more than you need. You can't move, store, damage, or lose material that you don't have. Reducing your dependence on inventory space whether at an internal warehouse or outsourced one by changing your production strategy is the optimal overall solution.

 
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