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Warehousing is an integral part of the modern retail supply chain. Warehousing seems to impact practically everything relating to a business, from managing inventory and sourcing materials to prompt and timely order delivery to the customer. Warehouses are indispensable as physical stores generally lack space for stocking all the products they need to buy from a wholesaler. Furthermore, retailers usually prefer purchasing items in small quantities. A wholesaler relies on a warehouse from Worldwide Logistics to stock all the goods or products until retailers order another shipment.
According to experts on Forbes, it is a critical issue to tackle supply chain bottlenecks. However, they firmly believe that you can enjoy a boost in productivity if you focus on efficiencies within a distribution center or warehouse. Moreover, it can help bring about a dramatic improvement in resolving supply chain concerns.
Inventory management and stock keeping are core factors to be considered for maintaining a perfect balance between supply and demand in the market. All businesses must choose a suitable warehouse and storage facility that caters to their unique business requirements.
Key Parameters While Choosing a Warehouse
Seasonality of the Specific Business
Warehousing logistics get impacted by seasonal fluctuations in the supply and demand of products. In case your sales are subject to seasonal or monthly fluctuations leasing a warehouse could be a costly affair during the off-season. Furthermore, things may become challenging due to a shortfall in warehousing space during holidays or the peak season.
As such, it is best to delegate the warehousing and distribution work to a reliable and trusted partner to manage this aspect of your business seamlessly.
Number of Stock-Keeping Units
Stock-keeping units are effective in managing and tracking inventory movement. They assist you in calculating the space needed and the expected storage fees. You must focus on fulfilling orders at the earliest possible. You should pay attention to restocking promptly, the inventory to keep pace with the customer demand and minimize storage and logistics expenses.
Location of the Warehouse
You may choose a warehouse depending on your business’s unique requirements. If your primary objective is to store products in bulk over an extended period choose a warehouse in a cost-effective rural location. However, if your business promises prompt order deliveries, choose a fulfillment warehouse close to the customer’s shipping destination. Moreover, in general, it pays to use a warehouse in an urban location or big city since you can deliver orders promptly to a wider audience.
Warehouse Layout & Size
Warehouse layout plays a vital role in contributing to your everyday overheads. You need to examine and evaluate meticulously whether the layout of the warehouse caters to your business’s unique requirements and complements your operation styles. Choose a warehouse with efficient and effective designs for seamless operations and optimum daily operational expenses. While determining the perfect warehouse size for your business, it is best to consider the likely business potential and additional storage requirements in the future.
Warehouse cost is a defining factor when choosing a suitable warehousing facility for your business. Moreover, conduct a thorough security audit to ensure total safety for your goods. Always choose a warehouse close to important land routes, ports, or air connectivity.