Warehousing requires a logistics system, which
is considered as an essential part found in supply chain management. To achieve
its perspective goals, there is an important part of this system called the
warehouse and warehousing management. Despite the fact that warehousing
management is mostly involved with storage of goods and products, there are
useful inbound processes that are carried out to prepare these goods and
products for storage purposes and outbound processes that do consolidation,
packing and shipping orders which offer very essential services and economic
benefits to the business and the intended customers.
Warehousing benefit number one to this system is that offers
a central location where the products can be received, stored and distributed.
Every time that the inbound shipment arrives, the respective products are
transported to the warehouse using the personnel employed from they are
identified, sorted and then dispatched for temporary storage. When the time of
movement comes, the order of respective product is retrieved and grouped, then
packed and checked for any issues before dispatching them to the new location.
Warehousing also offers the value-added operation to the
logistics system. It does this by increasing the utility value of the
respective goods through creating ways of having the correct products available
in the right place and during the right time. The warehouse carries out order
consolidation operation, order assembly operation, product mixing operation and
finally cross-docking operation. In addition to these operations, it also makes
addition to the whole logistics system. Through the stated benefits, the
logistics system remains at a position of reducing cycle times and the overall
inventories, lowering costs and finally capable of improving the customer
service.
Warehousing is also important to the logistics system is
that it offers economies of scale using favorable operations, the capacity of
storage and the central location. It makes it possible for the economic
benefits to be realized through the operations like consolidation and
accumulation. Consolidation operations are vital for cutting outbound delivery
expenses involved in the business and the potential customers. It makes it
possible for one to deliver products directly to the central warehouse where
they are packaged and then shipped back in a form of a complete order. On the
other side, accumulation operations make it possible for the warehouse to
behave as the buffer by balancing demand and supply for the purpose of
long-term and seasonal storage.
Warehousing
offers service benefits to the logistics system. This is because warehouses are
capable of serving as the contingency plan part in ensuring full filling of
outbound orders on time. Businesses are in a position of maintaining
predetermined types of inventory items using what is known as the safety
stocking at its respective warehouse.
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