Importance of Warehousing In A Logistics System

Apr 14 2015

Warehousing is a very important part of the logistics management system. It provides storage for the finished goods and also includes packing and shipping of the order. Efficient warehousing provides an important economic benefit to the business as well as the customers.

Here is a list of the importance of warehousing services in a logistic system:

Inventory Control: A warehouse helps manage a large amount of inventory for a business. It assists in matching the supply with the demand of a rapidly changing environment.

Centralization Of Goods: Since all the goods are stored in a central location, it becomes easier to receive, store and distribute the products. Thus reducing the transportation costs of a business.  The warehouse personnel are responsible to identify, sort and dispatch the goods as soon as the shipment arrives.

Value Adding Operation: The warehousing system helps in increasing the utility value of the goods, as the products are available at the right place at the right time. Various other operations such as order consolidation, order assembly, mixing of the product, cross-docking etc. take place under one building, thus adding value to the overall logistics systems.

Economic Benefit: Through efficient operations, a warehouse offers a wide range of economic benefits to the businesses. Various costs including outbound delivery costs, shipping costs, transportation costs etc. are cut down. The accumulation of the goods allows a warehouse to act as a buffer and keep a balance between the demand and supply of the goods. This helps increase the profit of a business in a number of ways.

Social Benefit: A warehouse also serves a wide range of social benefits to the clients, it helps them keep a safety stocking for the time of emergency, such as delay in the transportation and shipment having defective goods etc.

Cross- docking: It is a process of moving the goods directly from receiving the shipping with little or no inventory. It is a way to move the products more efficiently and effectively.

The warehousing service is the most important component of the supply chain and the logistics system. It allows a firm to maintain the inventory and the data analysis helps in minimizing the risks of delay for the shipments. Tracking the delivery times could become much easier with the warehousing management system.

We, at Santos International, provide warehousing and distribution services to business firms across U.S. For more information, call at (956) 782 – 1320. You can also visit us at 3329 S. Jackson Road, Pharr, Texas 78577 for more information about our services.