Warehousing plays a crucial role in running logistics supply chain management. You may not know that warehouses are the ones that store products and goods safely around the clock. It is a centralized place for stored goods, which makes planning and organizing your logistics easier.
A warehouse is a branch of logistics supply chain management that eliminates warehouse organization issues, including receiving stocks, accounting, and stock placement. This post will go into greater detail about how logistics and warehousing management work together. To learn more about their relationship, continue reading.
The role of a Warehousing in a Logistics System
Transport: Logistics is a method of moving goods from the supplier to the buyer. However, buyers do not receive the products directly from the supplier. It can be transported from one point to the destination. Warehousing helps businesses save money on logistics by consolidating transportation and moving goods. Both logistics and warehousing support each other.
Quality controls: Any product kept in a central warehouse will be measured accurately, including its precise dimensions, weight, quantity, and configuration. Measuring their weight will be supplied at the appropriate location and time. In the traditional quality control method, the products are verified visually, and read a code for the product or container is. Warehousing helps in checking product quality thoroughly.
Inventory control: Warehousing allows the number of stocks to be kept at all times so that the customer’s needs are met while keeping maintenance costs as low as possible. An inventory management system helps in managing inventory and accounting tasks.
Maintain Product quality: Customers will be satisfied if they receive a high-quality product. When placing an order, customers request different items in various quantities. Businesses produce their goods in batches to meet market demands. In this case, a warehouse can reduce transportation time and ensure that orders are filled efficiently. In this way, it is a deep relationship with logistics and warehousing.
Customer service: Logistics can deliver products at a specific location and time. Organizing and manufacturing goods become easier while delivering orders at a quicker turnaround time. However, you must be assured that there are enough supplies to meet uncertain needs. Suppliers cannot foresee the costs associated with stockouts.
Protection from unexpected events: Warehouses play a vital role in protecting logistics supplies from delays or damages. Sometimes, the production process could cease due to delays in the raw material delivery. It can harm the business. Transport damage can affect stock levels and order fulfillment efficiency. Therefore, distribution warehouses can protect from any damage during transit or storage.
Functions of Logistics and Warehousing
Warehousing oversees all necessary tasks, including accepting items, storing them, preparing paperwork, releasing supplies, registering and documenting stocks, and disclosing storage-related losses. The warehouse management also takes care of supplies, protecting sensitive products, keeping records of all materials, and stock control. Learn how logistics and warehousing are related.
Types of Warehouses Used for Logistics
- Private Warehouse: Popularly owned by large businesses, wholesalers, and distributors. Big e-commerce stores such as Amazon have their warehouses at different locations. However, it is an expensive option for small eCommerce stores.
- Public Warehouse: Public warehouses are owned by the Government organization and are made available to commercial enterprises. Both commercial and private businesses can use public warehouses for storing their products.
- Smart Warehouses: Large corporations, such as Amazon and Alibaba, have adopted AI-based warehouses to manage administration, storage, and fulfillment operations. Robots and drones can be used for packaging, weighing, transporting, and storing products. Smart warehouses speed up order fulfillment and lower the possibility of human error.
- Consolidate Warehouses: Before delivering small shipments to consumers, consolidated warehouses collect goods from several suppliers and combine them into larger shipments. However, the shipment can be made to the same destination. This warehouse is highly affordable to meet order needs on time, especially for small businesses and new corporations.
Hopefully, you understand the relationship between logistics and warehousing supply chain management. It can help an enterprise to stay ahead of the competition and avoid a shortage of goods. Logistics warehousing is a crucial part of leading your business by regulating operations and focusing on the growth of an organization’s customer service process. The use of logistics and warehousing has so many advantages. Find the best logistics provider that is aware of your company’s needs.