Every business wants to reduce inventory and accelerate
deliveries. Recognizing that objective, why do we still
have warehouses?
Managing supplier unpredictability. We can’t always control our suppliers. To control our production and shipments, it
is often necessary to have inventory that is on hand, approved for quality and
ready to go to the production or shipping department.
Reducing mistakes.
A warehouse can function as a conduit through which components flow
before being shipped to customers.
Quality processes can be applied to individual items, or on a
statistical basis to samples of larger batches.
Once the materials are stored in the warehouse, we are sure that they
conform to our specifications.
Controlling process flow.
A warehouse might contain raw material, work-in-process and finished
goods. This allows us to manage the flow
from receipt of raw materials to shipment to our customers.
Managing distribution.
A warehouse might be a distribution center and hold goods we produce, or
goods produced by others. It allows us
to receive goods in bulk from our suppliers and sell those goods in smaller
lots to our customers.
Managing shipments.
A warehouse might be designed to store goods to be shipped to fulfill
customer orders for single or multiple items.
These are called fulfillment centers.
Managing transportation.
Warehouses may be established regionally to help reduce shipment costs
to individual customers.
Adding value. A
warehouse may offer additional services, such as packaging, labeling, etc. These value-added services can generate
increased profits.
Thanks For Reading, don't forget to follow us on Twitter, Facebook, and LinkedIn for more company updates and look out for our next weeks blog titled-"Warehouse Failures-How to avoid them"
TEL. (714) 656-2898 | info@avectous.com
http://avectous.com
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