Role Of Warehouses In Maintaining Logistics

The presence of warehousing in the logistics system is of paramount interest for businesses to ensure smooth functioning of the operations which brings one of the most sought-after traits in logistics world – consistency. Ever changing customer needs, on time delivery, infrastructure, capacity, efficient communication, and security are some of the major things that have to be considered by transport companies in India. A proper arrangement of warehouses can bridge the gap between the supply and the demand. 

Some problems that an effective warehousing system can address are as follows:

Storage: One of the major functions of a warehouse is storing goods after production. Once goods are manufactured they are to be stored until necessary arrangements are made for the distribution. It is important that the goods are appropriately taken care of to avoid damages and in the case of perishable products, spoilage. Raw materials too are needed to be stored to enable mass production to be carried on uninterruptedly. Often, warehouses store goods in anticipation of a price rise or a spike in demand too.

Risk Minimization: Manufactured goods are subjected to other forms of risks like pilferage, shrinkage, deterioration; damages etc. which warehouses take responsibility of as they are built in the way that ensures proper nurture and security of the stored goods. It is a good idea to build the warehouse keeping in mind the requirements to be fulfilled or rent it accordingly. 

Information Flow: Warehouses contain a great deal of information that is very important in taking business decisions. A variety of information flows through warehouses during operations such as order status, shipment status, throughout rates, the volume of goods stored, the category of goods, the average time taken to complete an order, the average cost per order, number and frequency of inbound and outbound shipments, routing,  invoices etc.

Price Stabilization: A small change in the supply or demand of goods can have a drastic impact on the prices. Warehouses provide the time utility by storing the goods long enough to provide them when there is an excess demand or when the supply from manufacturing facilities is high.

Spatial Convenience: Without the warehouses, it would be impossible for customers to buy the desired products within their neighborhood which will reduce the availability of products thereby leading to lower profits. Warehouses serve to provide a spatial continence to customers ensure an even distribution of products throughout the markets. 

Regular Production: To enable mass production to continue on a regular basis, it is important to keep a ready stock of raw materials that need to be stored and replenished at constant intervals. 

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