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Warehouse: Ensuring Efficiency With the Production Process

April 05, 2012 | Comments: 0 | Views: 148

The main purpose of the warehouse is to have in place measures for addressing growing demands for company products. Warehouses play the role of a middleman between production and the consumer. They ensure an efficient transportation of goods from their point of origin to the consumers- with the lowest cost. Furthermore, they make it easy and faster for the company to ship and deliver goods to their destination. There are different types of warehouses including contract warehouses, private warehouses and public warehouses.

Choosing warehouses/retail stores carefully:

Investing in warehousing can prove challenging. Therefore, it is advisable for businesses to use efficient and effective logistics warehouses. This is borne to generate substantial cost savings. One of the factors to consider when choosing warehouses is the type of equipment used. The best logistic & distribution warehouses feature state-of-the-art technology and services which save on time and costs.

Having your own private store can also help your business in many ways. The location of the store is by far one of the most important factors to take into consideration when setting up the store. The location needs to be within the convenient reach of the consumer; always giving special attention to those using public utility vehicles. The choice of the stores or warehouses depends on the location. The facility should be located in an area were it can be readily accessed in order to facilitate transportation to different areas.

Furthermore, the store should be located in a safe place to avoid incurring additional costs in the form of stolen goods and higher insurance premiums. It is equally important to determine the type of products that will be accommodated in the store. This is important for purposes of choosing the materials that will be used in the construction of the shelves.

Keeping with advancements in inventory management:

Recent trends in retailing have necessitated warehousing-style retail stores. These high-ceiling buildings exhibit retail products on heavy duty racks rising to the top as opposed to conventional retail shelving. Items ready to be submitted into the sales chain are placed on the bottom rack while palletized or crated inventory is placed on the upper racks. Therefore, the same premise serves as a retail store and warehouse.

Warehousing plays an important role in ensuring efficiency with the production process. The inputs can be committed readily into the production process for storage. Therefore, a smooth transition is experienced from the input into the system and from the system to the warehouses again and finally to the consumer.

In order to ensure productivity, warehouses need to keep up with the advancements in inventory management and cutting edge technology. Previously, warehousing entailed taking advantage of the available storage space. However, this is changing with more warehouses being designed to maximize on the storage capacity without incurring unnecessary storage costs.

Source: EzineArticles
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