The 6 roles of warehousing in logistics
Posted on 11.02.2020
Warehousing is just one part of an effective logistics management system for businesses, but without it, businesses are likely to face all sorts of problems.
A warehouse’s value is sometimes exactly what you think – for sorting goods and keeping them safe and secure.
But equally, there are some less obvious social and economic benefits to having a warehouse, so they have a bigger role than you think in the logistics of a business.
1. Inventory control
By having a warehouse, it is much easier for businesses to manage a large amount of inventory. Warehouses can help when a company needs to match supply with demand in a fast-changing environment.
So if you’re trying to get more organised and improve the success of your UK logistics, warehousing is a great place to start.
2. For economic reasons
Because of their efficient operations, warehouses offer many economic benefits to businesses, which is a key reason to invest in one.
Costs such as transportation, outbound delivery and shipping are massively reduced with a warehouse. Also, by building up products in a warehouse, as mentioned above, you have a buffer in the supply and demand of these goods, which can only be a good thing for the profit of your business.
3. Centralising the products
With all its products in one place, a business will have a much easier time of receiving, storing and distributing its goods.
This also reduces transport costs associated with the business as staff at the warehouse can organise the goods straight from the premises, including identifying, sorting and dispatching.
4. An emergency buffer
Warehouses have an unusual role in maintaining the integrity of a business. Why? Because if an emergency strikes, such as faulty products or delays to transportation, the business has spare goods in stock to turn to.
5. Adding value
Warehousing is just one part of an efficient logistics system. All goods are kept together in one place, available to access whenever the time is right. They are there, ready, for other necessary activities to take place, such as order consolidation and mixing products. They are also a key part of the packing and shipment stages of logistics.
6. Keeping goods safe
This is a pretty obvious one, but a warehouse’s role is also to protect a business’s goods. Warehouses have both security personnel and excellent security technology to ensure sites can’t be accessed without permission.