How Can Warehousing Improve Your Supply Chain and Logistics?

Along with the growth of your retail business, the question of appropriate goods storage emerges. Maintaining the order of your products does not solely improve inventory transparency but streamlines your supply chain. 

What is warehousing in logistics?

In supply chain and logistics, warehousing plays the intermediate role in ensuring an uninterrupted flow of goods from supplier to consumer. Storage depositories bear many valuable functions: you can effortlessly check your stock, evaluate your order fulfillment, and optimize shipping performance. So, warehouses can source important business management data besides being reliable for storing goods.

The primary purpose of supply chain warehousing is to facilitate the distribution process and make your products more accessible to customers in remote locations. The realities of the modern logistics industry tend to address the question of easy distribution technologically. Today, more and more warehouses are moving towards automation, making them more affordable for small business communities. According to market research, warehouse automation expects to grow by 1.5x in the next few years. As a result, most warehousing operations will proceed much faster and exclude human error. 

Types of warehouses

Several main types of warehouses differ depending on their purpose and the facility that owns them. For example, large companies usually control public warehouses that provide retailers an opportunity to rent a space for their products. Public warehouses are attractive to small businesses due to their affordability.

Private warehouses are a great option if your budget allows investing more costs into item storage. Typically, using a private warehouse includes the oversight of its employees and guaranteed safety levels, which works if you sell valuable items and want them to be maximum security.

Bonded warehouses are a good choice for those involved in international shipping. You can store the imported goods in this warehouse while all the customs duty operations get cleared. Controlled by customs officials, bonded warehouses are highly reliable.

Benefits of using a warehouse

Warehousing creates an excellent chance to increase supply chain productivity by reducing your effort. If you pick the type of warehouse that aligns with your items’ storage requirements, you’ll benefit from it diversely.

Fast delivery

You are more likely to face congested routes, traffic jams, and late deliveries when shipping for long distances. Once you find a storage space closer to your usual destinations, the commute time will reduce significantly, so your carrier avoids shipping delays and arrives timely. Besides, less on-the-road time decreases the possibility of freight damage or loss so that the items reach the receiver in perfect condition. If you’re shipping internationally, consider placing the products in an overseas warehouse to impress your foreign customers with the supply chain’s effectiveness.

Better order fulfillment

Keeping your products in a warehouse, you’ll always stay updated on your inventory state, thus preventing common stock issues. Accessibility is another advantage of logistics warehousing that gets you to know what items are there and enough and what are to refill to meet the customer demand. During the peak shipping season, warehousing comes in handy when you need to process the orders much faster and have less time to deliver them. Locating the goods in a trusty place will release you from constantly managing busy shipping so you can focus on serving your buyers.

Reliable storage

Modern warehouses can accommodate various products and technically adjust to any containment specifics. For instance, you can locate certain foods, beverages, or pharmaceuticals in a space equipped with temperature regulation. If you’re shipping large items, try to find a warehouse capable of condensing them. Storing hazmats requires looking for a specialized warehouse where the employees know to handle dangerous goods. Additionally, using a warehouse means no one except its workers can access them. Advanced security systems prevent theft and damage of your items, so you don’t worry about safety.

Also, you can regard logistics warehousing as a solution for storing surplus goods. Even if you’ve faced overstocking or the type of products you sell isn’t required much during specific periods, you may easily keep them in a warehouse until the right moment.

Reduced shipping costs

With a strategically located storage space, you can effectively save costs on fuel required for covering the entire distance. It allows you to pour your savings into other specific branches of the supply chain. Besides, automated warehouses remove the need to apply for additional manual services such as loading/unloading, cargo shifting, etc. 

If your production capacity or physical stores operate in remote areas, it’s great to use a warehouse as a more popular pick-up location for shipping. Thus, you’ll access a vast network of carriers and better transportation rates. 

GoShip can help you find your perfect carrier match. We cooperate with many professional shipping services to deliver your freight, avoiding disruptions and inconvenience. With our free quote tool, you can quickly get insight into carrier rates and choose the most suitable option.


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