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The Increasing Importance of Warehouses in Logistics

The Increasing Importance of Warehouses in Logistics

Warehouses in Logistics

Warehousing is a vital component of virtually all businesses in general and the logistics business in particular. Warehouses have always been a part of large and complex distribution functions. Even small and medium-sized businesses are acknowledging the growing importance of warehouse management in today’s fast-paced scenario of integrated logistics, same-day delivery and e-commerce commitments. And why not, efficient warehousing provides vital economic benefits to businesses as well as their clients and customers.

Here are the reasons why we see an increasing importance of warehousing services in the logistics system:

Inventory Control
A warehouse helps in seamless and efficient management of large-sized inventories. It assists in synchronizing the supply with demand in the dynamic market set-up. With a warehouse management system in place, firms can manage their inventory in real time, with data regarding latest order, shipment, or receipt and any movement in between. In the long run, this can play a key role in leveraging available resources and expanding the business.

Centralization of Goods
Warehousing makes it easier to receive, store and distribute the goods as all the goods are stored in a central location. This helps in reducing transportation costs and increasing the value of goods as products are available at the right place, at the right time. Various other operations such as order consolidation, assembling, mixing and cross-docking of products etc. can take place under one roof, thereby adding value to the overall logistics system.

Economic Benefit
Through efficient operations, warehousing can cut down various expenditures including outbound delivery costs, shipping costs, transportation costs etc. Through warehouse management, a business can boost its competitive advantage by improving inventory accuracy, curtailing labor expenses, increasing flexibility and enhancing customer service plus responsiveness.

Effective utilization of warehouse space
An effective warehouse management also improves the available warehouse space on a continuous basis by locating the products in relation to receiving, packaging, and shipping areas systematically and effectively. This improved efficiency can greatly enhance productivity and cut inventory holding expenses, all of which can pay rich long-term dividends to the firm.

It is quite evident then that warehousing service is the most important component of the supply chain and logistics system. Warehouses in India add considerable value to the entire logistics process by facilitating proper management of inventory and reducing the cycle time. The resourceful and efficient warehouse management significantly enhances the growth and expansion of logistics and supply chain businesses.

TAGS: Logistics in India, Warehouse Management

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