The warehouse cannot be separated from a series of logistics activities. The warehouse itself has a function or usefulness that is quite important, not only limited to the storage of goods. A lot of activity happened there. What are the uses of the warehouse and what reasons make warehousing important? On the other hand, we’d like you to also check out the trusted Storage Units Casa Grande.
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Storage / Warehouse Usability
Inbound consolidation, where items will be processed, consolidated first in the warehouse before entering into the production process.
Goods In Process (product mixing), from factories in different locations, are consolidated in a warehouse to be assembled before being distributed to the market.
Outbound Consolidation, goods produced in factories located in different locations are consolidated before being handed over to customers.
Outbound Dispersion (break bulk), goods that have been produced in a factory are entered into the storage/warehouse to be divided into smaller volumes before being distributed to the market or customers.
Reasons for the Importance of Warehousing
Transportation-Pruduction Cost Reduction
The warehouse has an important role in the process of controlling and reducing transportation and production costs, basically, warehouses that are always associated with the process of goods procurement incur additional costs for the goods distributed.
Coordination of supply and demand
Warehouse functions one of which is as an element of coordination between supply and demand, the volume of demand cannot always be projected relatively accurate while the production process must be carried out to produce a certain volume.
The production process for goods with certain classifications and characteristics requires warehouses to reduce production costs and to complete the final process of producing goods.
Items with certain types, classifications, and characteristics demand that they must be readily available on the market so that the supply of goods on the market does not stop