February 2021
The Importance of Efficient and Effective Warehousing
The supply chain is an immensely complex entity, and it helps to break it down into individual links when trying to understand. One of the most important links in any supply chain is warehouse management. A subset of the logistics management system at large, your warehousing strategy is something that cannot be overlooked.
Effective and efficient warehousing benefits business in a number of different ways, from the convenience of having all of your stock in one central location to the additional revenue that you may earn by leasing out space in your warehouse to the role of warehouse location in product distribution.
Long story short—if you’re not paying attention to your warehousing solutions, you’re already starting out at a disadvantage.
Basic Benefits of Warehousing
Don’t let the word “basic” fool you. These benefits are simple in concept, but they are integral to the success of any business in our industry. If you’re not able to deliver on these basics, then your service and operations will never be exceptional!
Improve Inventory Management: This one sounds obvious, but the fact is that a surprising amount of businesses don’t track inventory or don’t have inventory, period. Storing, shipping, and distributing products is a lot more straightforward when you have them stored in one centralized location.
Streamline Packing and Processing: It’s not just about having a place to store your goods, of course. It’s about having a place to store everything else that you need to process and package goods on the way out. A well-equipped warehouse can function as a highly efficient distribution center.
Impress Your Customers: Customer service is the core of what we do, and you cannot expect to truly impress your customers if you’re keeping them waiting—or in the dark entirely. Proper warehousing translates to timely deliveries of goods, as well as reduced risk of errors or damages during fulfillment.
Stabilize Your Prices: Going hand in hand with the customer service angle is the pricing angle. As we’ve seen this past year, factors well beyond our control can severely affect product pricing. Storing goods and materials for sales and distribution down the line lets you stabilize pricing.
Reduce Overall Risk: Business in general is not something for the risk averse. At least, not those that are overly opposed to healthy risks. But there is a big difference between taking responsible risks and being reckless. Efficient warehousing allows for the successful management of perishable and otherwise sensitive goods.
What Are My Warehousing Options?
If you’re worried about how warehousing fits with our current business size or resources available, then we have some good news. Today’s warehousing options have something to offer pretty much any business owner. From those with large amounts of capital on-hand to smaller operations that have to be more fiscally conservative, there is a warehousing option that will work for you.
Build Your Own Facility: This is obviously a very cost-heavy option, but one worth considering if you can secure the necessary funds. Building your own in-network facility means that your warehouse is designed for your specific needs. You own it and you outfit and operate it, giving you total control.
Lease Your Own Facility: Not quite ready to invest in the real estate, but you like the sound of running the show in all other regards? Then you can lease an existing warehouse space and outfit and operate it as you see fit. As you grow, you can consider your buying options.
Lease Space and Services: Don’t have the capital or the manpower you need for investing in and running your own warehouse? There are plenty of good third-party logistics providers that can step in and handle this crucial aspect of your business for you.
These three options definitely fall into the category of more traditional warehousing strategies. If you’re looking for something with a bit more flexibility, then on-demand warehousing might be right for you. With on-demand warehousing, you:
Scale your warehousing solutions to meet varying demands throughout the year.
Test new strategies to meet client expectations with minimal risk.
Adjust capacity as needed for seasonal changes in demand or when you have excess inventory.
Offset high inventory storage fees and reduce transportation costs when distributing to retail outlets.
Improve direct-to-consumer strategies while testing new markets and enhancing delivery processes.
Don’t hesitate to reach out if you have any questions about how to take advantage of the benefits that on-demand warehousing has to offer.
Make the Most of Your Warehousing Solutions
JF Moran delivers world-class in worldwide logistics. We have the answers that you need to develop warehousing solutions that work for you. We also offer warehousing services for those businesses that are looking to direct their internal resources elsewhere. Get in touch today.
It doesn’t matter if you’re a small company with small inventory needs, or a multinational enterprise with exceedingly complex logistics. We will treat you like family while helping your business to succeed. See why our client relationships have propelled us to worldwide leader status!
Would you welcome improved visibility of your shipments?
If your answer is “yes” to having key knowledge about your shipments, we have the solution for you. It’s our Supply Chain At-A-Glance Report. Learn more about this and what it can do for you – and then request yours.