Role of warehousing in logistics.
[a] Location-The location of the Warehouse should be the center
where receiving storing and distribution of the products occurs. From
identification of the products according to the categories on receivable to sorting
and dispatching to the concerned areas for easy shipment is coming under
warehousing operations. The storage of items involves the process by which
products are categorically stored at useful locations so that it can be shipped
at the convenient time.
[b] Operations to Add Value-The importance of warehousing in
logistics management is because it helps to deliver the right products at the
right place at right time. Consolidating orders assembly of components and
mixing of products also comes under warehousing operations. It is also possible
to reduce the cycle times and inventories through proper management of products
at the warehouse.
[c] Economic Advantage-Through warehousing it is possible to
make the operations efficient and utilize the storage capacity to maximum.
Through consolidating and accumulating operations the economic benefits can be
seen in warehouse management.
[d] Improving the transport sector-
Rail
transportation set in motion the industrial era with the transport of
agriculture commodities and livestock; warehousing was leveraged to store such
cargo prior to processing and then distribute finished products traveling to
the destinations.
Role of warehousing in procurement
ü Cost saving-Warehouses had
over time served as a transit point for materials therefore their efficient and
effective operations makes for good organizational profit through improved
customer satisfaction and availability of materials as at when required.
ü Long term storage-Warehousing
played a role in the storage and exchange of goods for centuries. Long-term
storage to provide product for future consumption has been a utility of
warehousing both past and present.
ü Fleet maintenance-The warehouse can
act as a center for operations, hence the management can oversee all duties of
distribution and even transportation.
References
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