Businesses are faced with a host of challenges to remain competitive in today’s economy. One area of concern is inventory management. There are a number of reasons for this: storage space, changing markets, and transportation costs, for instance. Warehousing presents a supply chain solution for each of these inventory management problems.
Warehousing offers an off-site solution for storage of inventory, thereby creating more sales space on-site. A company can maximize its use of available real estate by warehousing its inventory at a remote location. Additionally, product can be monitored and safeguarded by a third party, alleviating the need for additional personnel.
Merchandise frequently needs to be changed, replaced or supplemented on short notice due to changes in market demands. Through the use of warehouse distribution services, your company can get the proper mix of products to each location more efficiently. Slow-moving merchandise is replaced with higher demand inventory. Seasonal products can be turned around more quickly.
Transportation costs are a significant part of your company’s overhead. Warehousing puts all of your inventory in one location, allows you to stockpile for future demand, and thereby purchase at lower pricing. Product can be consolidated for redistribution with minimal cost by reducing the number of shipments required to get the merchandise where it’s needed.