Why warehousing is needed

These common questions address the importance of warehousing solutions. Warehousing has been around for years, and it has helped businesses provide different storage needs. Warehousing is simply not providing a storage facility, its creating inventory control, increasing order accuracy, tracking employee metrics, and executing quicker picking and receiving times. Why is warehousing important for your business? Here are our top reasons. When an order is placed, customers only care about the delivery of the product.

Is it delivered on time? Is it the correct order. Warehouse management improves your companies order processing. It protects you from potential fulfillment issues with secure stocking of your products. Your products can be available for shipping whenever its needed. Gather enough stock for the next few months, and reduce delays in delivery. Warehousing improves the order accuracy allowing you to provide customer orders the first time. Holiday and shopping seasons, such as Christmas and Black Friday, are famous for their high sales numbers.

A warehouse space will just suffice. In this case, you have scale your operations when the shopping seasons come. You can monitor consumer trends and stock up on inventories for peak seasons.

Basically, a warehouse gives you the ability to boost your operations as needed without any cost burden. You can take advantage of new opportunities and sales cycles in the market. As a business owner, the last thing you want is to experience violent fluctuations in prices. This usually happens when the supply of a particular product exceeds the market demand. If you decide to sell, you can easily suffer loses. Instead, you can use a warehouse to store your products. When the demand becomes more than the immediate supply and productions, you can then release them to the market.

A warehouse also provides safe custody of perishable goods. You can utilize cold storage and refrigeration to avoid product spoilage. Of course, you can expect this storage service to cost more than regular storage. This eliminates the time wastage that is likely to occur when you are getting the product directly from the production site. Stocks for months can be stored in the warehouse to reduce delivery delays.

Losing customers due to long and irregular delivery times can be avoided. Even though you might have a storage space in your production or distribution facility, during busy times that might not be enough. A warehouse will allow storing goods safely in such instances.

Goods are usually produced in surplus quantities by most companies anticipating demand. This means a storage facility is necessary until the clients and customers start ordering. A warehouse will meet all the storage needs and is ideal for easy transportation. Only the quantity of the products is monitored by the inventory control systems in warehousing. But, it is also possible to monitor the production quality as well, with some changes and better store management.

Tracking the finished goods and raw materials will give you the number of materials that go through the production process. It also helps in identifying and isolating products with defects and the ones that do not meet the necessary quality requirements. An effective tracking system in a warehouse will help to work together with both vendors and suppliers to minimize defective or low-quality raw materials.

It also allows monitoring of shelf life and expiry date of different products, thus allowing to remove the products from the warehouse in time.

Violent fluctuations in prices in the market is something everyone fears. This can happen when the supply of a product is much greater than the demand. So selling during that time can cause huge losses. In such cases, the products can be stored in a warehouse, rather than selling them and adding to the bad situation.

Warehousing comes in many shapes and sizes including the following:. Apart from the storage of products, warehousing has many advantages that are not initially apparent. These include:. Improved Inventory Accuracy : Knowing how much inventory you have and how much you have moved means you can plan for the future more precisely.

Reduced Overhead Cost : As you improve the running of a warehouse you can invest more in further development and reduction of costs. Better Staffing Levels : Understanding how busy your business will be over a period of time will allow you to plan your staffing needs accordingly. Protection of Goods : Having a storage facility that fits the needs of your goods it so important to a business.

If you have perishable goods that require refrigeration you need to ensure that your warehouse lives up to this standard.