For most, a warehouse is just a place to store goods until they’re needed in the future. However, anyone who works inside of a warehouse or manages one can tell you it is more than “just storing goods.” Warehousing and warehouse management are all a part of a logistics system which is all connected to Supply Chain Management.
Logistics, Supply Chain Management, & How It All Works
What exactly is logistics? Well, it is implementing efficiencies across a business’s entire supply chain that help the business to achieve their goals. Now for a warehouse, the goal would be to make sure all the correct shipments are sent on time and without any broken, missing, or damaged goods. Without even realizing it, all businesses have logistics because all businesses have supply chain management! The importance of Supply Chain Management (SCM) in a warehouse is that SCM works to control the production, shipment and distribution of a product. This is done by managing the supply chain, so companies are able to cut cost and deliver the products at the needed time and date.
The First Thing A Company Needs For Great Supply Chain Management Is A Central Location
The first strategic strategy needs to be a central location for this warehouse. This is because this is the location for receiving, storing, and distributing products. The truck driver is responsible for the goods being transferred to warehouse personnel who identify the products, sort, and dispatch the products to their storage location.
The Second Thing A Company Needs For Great Supply Chain Management Is Correct Storage
The second strategy for logistics is to have the correct storage system. Sure, everything could run smoothly from point A to point B, but this is not always guaranteed. It makes it easier on the warehouse employees if there is a logistics system to how the goods are arranged on the storage units. Some storage systems work better than others:
- Automated Storage and Retrieval System (ASRS) is the perfect solution for efficient storage of your high-volume inventory facility. This storage system utilizes the space above your current storage units. It also saves up to 60% more space!
- ActivRAC is on a mobile carriage and rail system that enables industrial warehouse racks to move side to side. This gets rid of empty aisles which means more room can be made for more storage units. The storage unit can hold up to 30,000 pounds of materials! With several different sizes, we are sure you can find the one you’re looking for!
The Third Thing A Company Needs For Great Supply Chain Management Is A Value-Adding Operations System
The objective of a logistics system is to reduce cycle times, inventory, lower costs and improve customer service. A warehouse provides the goods and a means to retrieve these goods when need be. Furthermore, daily operations such as consolidation, order assembly, product mixing and cross-docking that all take place inside the warehouse add value to the overall logistic system.
The Fourth Thing A Company Needs For Great Supply Chain Management Is Service Benefits
A method called safety stocking allows for businesses to maintain a predetermined number of inventory items at a warehouse. This also means in emergency settings that damaged or lost goods will not impact the current shipment being sent.
The Final Thing A Company Needs For Great Supply Chain Management Is Economic Benefits
The correct storage reduces delivery costs for the business and for the customers. This is because all of the goods are being shipped from one central location and not from multiple ones. A great warehouse can handle the supply and demands needed when times are booming around holidays or when times are not as steady. The ultimate economic benefit of a warehouse is that running it efficiently will positively impact the profitability of the entire process of the logistics and supply chain management side.
Overall, a warehouse holds a larger part of a company's success through proper usage of logistics and SCM. Without proper logistics and SCM, it wouldn't matter how successful the company was because the transferring of goods and holding goods would affect how the company is doing overall.
Midwest Storage Solutions, Inc., has been helping companies find their exact storage needs since 1997. We serve the Nebraska, Iowa, North and South Dakota, and Minnesota areas. We know that #StorageMatters! This is because it increases employee productivity, saves money and maximizes your current floor space plan! Please call us today for more information!