The Role Played by Warehousing in Logistics
The warehouse is a key part of logistics management, the importance of which far transcends that of a mere storage unit. Warehouse management also holds importance in the panning out of the supply chain. Although warehouses are simply viewed by many as a simple facility where goods are store till they are ready to transport or delivered, proper management of a warehouse can have a great impact on the success of a business and goodwill between the business and its customers.
Below is a detailed discussion of the various ways in which warehousing has become integrated closely into the supply chain and how it affects logistics management. Industry experts hold the view that warehousing functions, as well as logistics, must have a good synchronization in order for the business operations to be profitable. Good coordination between them can result in effective and efficient procedures throughout the supply chain.
Innovative Functions of Warehouse
- Nowadays, instead of shipping finished product with complete packing from the manufacturing units, manufacturers are striving to leave room for secondary packing. This is usually done in warehouses that have appropriate equipment. This secondary packing gives them greater flexibility and the current demands of the consumers can be assessed before the goods are finally packed. Warehouses are generally equipped with a number of different packaging possibilities.
- Some companies that have drastic fluctuations in seasonal demands face some warehousing problems that are unique to them. Obviously, these companies would want to maintain warehouses that can accommodate their seasonal surges, but paying for a space that cannot be filled all year round is not economical. This might result in higher logistics costs and affect the price of goods. To tackle this, shared warehouse space has become a popular concept. The 3PL service analyses the fluctuations and uses warehouse space for multiple shippers.
- Nowadays, many companies are exploring the option of cross-docking which used to be a popular practice in transporting goods. This is a cost-effective method that makes it possible to minimize handling and inventory needs between receiving and shipping. This process results in lowered logistics costs and hence is becoming a popular warehouse solution.
Warehouses Owned by 3PL Services
Third-party logistics services such as 20Cube Logistics have expertly recognized the importance of warehousing. Hence, steps have been taken to expand the function of warehouses and integrate them into logistics operations as well as supply chain management. The warehouses owned by these efficient 3PL services have state of the art design and are equipped with the latest technologies. This ensures high performance and quality operations. As mentioned earlier, these facilities are also used for functions such as packing and transportation management.
Therefore, the important role of warehouse solutions in logistics has been made clear by the discussion above. Wherever there is an efficient collaboration between the two, it results in a reduction of wasted time and opportunities for the logistics industry. The effectiveness of warehouse management can affect how other stages of the supply chain will operate and if the customer’s demands will be efficiently met. With proper warehousing, the cost of logistics can be significantly lowered.