For any logistics and supply chain management system, warehousing plays a vital role. Most of us think of a warehouse where we can just store things. But for businesses, it means more than just that. It has inbound and outbound functions. Storing goods is an inbound function while packing the goods and shipping the same is called as an outbound function.
In terms of logistics and supply chain, the location of the warehouse plays an important role as it can add or reduce transportation expense. The inbound shipments are received and then stored at a warehouse which can also be a container freight station. After they are stored the shipments are prepared for distribution. Many shipments are made up of various items. The correct identification of each item is important when you want to prepare the shipment for distribution. For this reason, there is the staff working on sorting the goods and keeping the SKUs in order. This is a part of warehouse operations. Shipments are always stored at a location that is in close proximity to the market so companies can save on transportation costs.
All logistics management aims at delivering the right goods to the correct place at an exact date or time. Many shipments are made up of various components or raw materials. Buyers often want a mix of products and pick and packing the same is also part of the warehousing operations.
If the shipment is brought into a company’s warehouse it may take a lot of time for the employees to prepare the onward shipments and this is why for efficient operations a third party warehouse is used for consolidation. With the help of modern inventory software companies are able to manage their stock and keep them at ideal levels with ease. They can check their inventory levels from any location and reorder the products they need to keep their inventory levels at par.
At the warehouse, the shipments are kept in a designated area which is kept at ideal temperatures so the goods remain in an excellent state. Many materials are sensitive to climate and the warehouse facilities offer storage for all types of goods. You can find freezers and walk-in refrigerators for perishables and also ideal temperatures for computer components and other sensitive electronics. Besides ensuring the shipments are stored at the ideal temperatures, the warehouses also use a 24/7 security system to ensure there is no pilferage.
No unauthorized personnel are allowed in the warehouse area to eliminate the risk of theft. The entire facility is monitored by security cameras so client merchandise can stay safe.
When a third party space is used to consolidate shipments, it brings an economic advantage to a business. Good warehouses help their clients save on the cost of doing business. If they get low space rent and low trucking rates they can offer lower prices to buyers. This makes them even more competitive in the market place.
Businesses conduct thorough research to find the best warehouse that suits their business needs. They like to hold meetings in person or online to ensure a good working relationship.Most exporters like to keep an ample stock on hand at the warehouse. It can be very difficult for them to move goods from their location to the dock every time they have an order. A warehouse makes operations easier and frees up the exporter from a lot of headaches. The goods are shipped to the buyers abroad from the rented warehouse space as soon as orders come in. In this manner, the exporters do not have to worry about order fulfillment. They save on the cost of labor and also save precious time that gets devoted to market expansion.
All warehouses have a plan in place to store your merchandise in an efficient manner and also to distribute them without any effort on your behalf. Clients can store finished goods, semi-finished goods and raw materials for as long as they like. Some warehouses are specialists in storing certain types of goods such as perishables or hazmat. They optimize their service potential by enhancing their storage facilities and equipping the same with modern equipment. These warehouses may also have a trucking company with specialized trucks to haul the shipments over the highways safely.
Some companies that are involved with seasonal sales find the warehouse a great place to store their goods till their sales season comes around. Manufacturers with limited production capacity also like to stock up on goods till the order demand is met. They produce only as much as they can and since their own storage space is limited, the warehouse serves as a good spot to store the new inventory.
A container freight station is a warehouse where shipments can go through customs clearance. The ports are very congested and the bonded, licensed warehouses located near it serve as a container freight station to ease the congestion. The shipments can stay there till they are cleared while outbound shipments can get consolidated.