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The Service Benefits Of Warehousing

Aug 26 2015

Warehousing is essential for all businesses, be it small, medium or large. Different types of warehouses serve various purposes to allow businesses to carry out their trading activities in a hassle free manner. Whether you want to store finished products, save space or maintain supply chain, warehousing can reap multiple benefits for your organization.

Here are some of the basic service benefits that can be achieved by warehousing:

  • Spot Stock: In this, a limited amount of your total manufactured products will be stored in the warehouse to accommodate its high seasonal demand. Using a warehouse for spot stocking allows businesses to store products in markets adjacent to the high demand areas during periods of maximum sales. Therefore, instead of hiring warehousing services throughout the year or transporting goods directly from the manufacturing plants, spot stocking can greatly reduce the time as well as costs incurred in the delivery of goods to the strategic markets. After the sales period, the goods can be safely moved to the central warehouse location.
  • Mixing: This includes mixing products from different manufacturing plants or suppliers to be delivered to a single customer. Businesses usually transport a stockpile of various finished goods to the warehouses. Due to large consignment, they can considerably reduce their transportation rate. At the mixing warehouse, these products are then categorized according to the customer or market demand.
  • Assortment: In an assortment warehouse, different products are combined and categorized according to the expected customer orders. Unlike spot stocking, it is usually limited to a small number of warehouse locations, stores several product lines and operates throughout the year. For instance, a sports good manufacturer would combine a complete team uniform, including t-shirts, pants and shoes.
  • Production Support: Warehousing also helps to maintain a constant supply of raw materials to the manufacturing plants. The basic function of a production support warehouse is to allocate processed goods and components in a timely as well as cost-effective manner.
  • Market Presence: As a local warehouse will be easily able to meet customer demands, it greatly boosts a company’s market presence. In the event of a higher demand, you can offer quicker delivery and increase your profit margins substantially.   

We, at Santos International, provide efficient warehouse services in Laredo, TX. We strive to provide accurate information to control inventory and maximize warehouse space. For more information, you can call us at (956) 717 – 9707 or visit our office at 419 Grand Central Boulevard, Laredo, Texas 78041.