Factors to Consider When Selecting a Warehousing Distribution
Logistics refers to the management of movement of materials and commodities from their manufacturing depots to point of consumption, keeping in mind the demand of local markets. The idea was originally applied to armed forces where it was essential to supply the rations, arms and ammunition to the forces from the base camp. In the context of an army, logistic solutions are very important as an army is entirely dependent upon timely supplies of provisions.
At present, logistic solutions are a necessity for a number of other sectors like manufacturing, export-import, wholesaling, customs, etc, in short in businesses demanding mass-scale transportation of products. The increasing complexities of maintaining an easy supply chain in the global market projected the demand for logistics and its emergence as a booming business. It basically includes planning and implementing activity forecast for business houses regarding a competent supply chain management based on statistics and market trends. Especially, providing the best transportation solution is the top priority of a logistic process.
The warehouse management strategy is the core from where tasks like governing the receipt, storage and movement of materials, transactions, shipping, loading, picking, etc, are governed. Inventory planning, cost management and well-knit communication system constitute the other important areas which must be considered to reach a flawless logistic solution.
The distribution costs have grown to be sky high and are continually growing and therefore, to reach the end user with low investment is a big concern for all manufacturers. However for these, a proper market assessment for the local demand of the product in various regions is a qualification. Then layout, setup and design for a distribution centre are selected by way of a slotting analysis. Room should be kept for re-slotting of distribution centres to keep pace with changing market trends. These must be acheived keeping a proper balance between cost and availability of space, easy access of transportation and affordable labour charges. For the best possible solution for a manufacturer, a comprehensive analysis of the logistics is a qualification.
The twentieth century has noticed the wipe-out of standard methods of transport logistics, with the development of modern methods like Just In Time (JIT) system. JIT operates by offering goods from the suppliers to the customers directly omitting the intermediate step of warehousing, thus achieving cut in the cost of production, in the time consumed for that task and a cut-down in the security risks needed during the transportation. But where offshoring activities are involved, warehousing is mandatory. Various factors are to be considered before selecting best suitable locations for warehousing. A recent concept where retailing is done from the warehouse itself is now very well liked. The idea of using a warehouse for retail purposes is very appealing to the manufacturers since it significantly reduces the cost to the end user and also increases the production sales ratio.
The introduction of internet and e-commerce has also made a strong impact on the development of logistic solutions in the field of warehousing distribution. Internet-based stores do not require a chain of outlets to sell their products; rather, their focus stays on a well-maintained delivery section and in such cases again, warehouses serve at most storage units.
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