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The Importance of Warehousing to Your Business

June 13, 2018 Courierwarehousing


Warehousing has been around for years, and it has helped businesses with different storage needs. Today, a warehouse is not simply a storage facility. Some companies offer additional services to optimize your entire supply chain system. This helps to create time utility as goods are only released when they are needed.

So, if you want to monitor and track your raw materials, finished goods, and other storage needs, then you need to rent a warehouse space.

But what exactly is the importance of using such services? Keep on reading to find out!

Get a Central Storage Location

A centralized location for all your storage needs help to reduce the production gap. This means you can receive, store, distribute, and ship products with much ease to save time and cost.

For example, a warehouse near a loading dock is ideal for receiving and storing goods from suppliers. For another company, a warehouse in the middle of the city can help them distribute and mail items to their customers easily.

Ideally, when choosing a warehouse, you want to look at a location that will make the most sense for your operations. This can be a location that can be easily accessed by your suppliers or one that’s in your target market.

Improved Order Processing

When customers place their orders, all they’re concerned with is the delivery of their products. They want timely delivery and quality services. Any potential fulfillment issue is not their concern; it’s yours.

Warehousing offers you “security stocking.” Ideally, this means that your products are available for shipping whenever customers place their orders. You don’t need to fulfill orders from your production facility.

You can have enough stock for the next few months, and this reduces delays in delivery. The last thing you want is to lose your long-term client or a sale because you couldn’t fulfill an order.

Offers Additional Storage

You can have a storage space your production facility, but your stock volume can outgrow it during your busy months. In this case, getting a warehouse space will make the most sense. You want your goods to be safe from damage and theft.

Basically, a warehouse is great for storing surplus goods, which customers and clients don’t need immediately.

Most companies usually produce goods in anticipation of demand. This means they’ll need adequate storage for their surplus goods until their customers and clients start putting in orders. A warehouse makes an ideal option to meet your needs.

Improved Production Quality

It’s easy to assume that warehousing inventory control systems only monitor quantities.

With better storage management, it’s possible to monitor your production quality, too. You can use it to track your raw materials and finished goods. These numbers can help to determine the number of materials that go through your production process.

As such, when you detect defects or quality problems in the production process, it’s easier to isolate defective materials or finished goods.

An effective warehouse tracking system also allows you to work with your vendors and suppliers to identify and minimize defective raw materials. This helps you save time as you won’t need to carry out control at your facility.

Inventory quality control systems help to monitor the shelf life and expiration dates of your materials. Workers can easily identify and remove stocks before they expire.

Improved Purchasing Decisions

How do you determine the right time to replenish your stock and raw materials?

A warehouse with an effective inventory management system can help in all purchasing decisions. It can offer you accurate data, which you can use to determine when to purchase raw materials and stock.

You can easily identify fast-moving and slow-moving products depending on your order history. It’s also easier to identify seasonal products. The data helps you to avoid purchasing an excessive or inadequate amount of certain materials.

Some inventory systems have signals that alert you to products that need replenishing. This allows you to keep your stock always in check.

Leverage Seasonal Growth

Holiday and shopping seasons, such as Christmas and Black Friday, are famous for their high sales numbers.

As a small business, you don’t need to have Amazon-like facilities to hit your sales targets. 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. This won’t lead to a significant increase in costs.

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.

Risk Management

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.

Also, businesses can minimize the loss from fire, theft, and damage by using a warehouse to store their goods. Plus, your goods are insured, so you can expect full compensation in case of any damage or loss.

Warehousing – Final Thoughts

As a business owner, you have different options, including private, public, and bonded warehouses. Whatever your option, leveraging warehousing services can help to streamline your supply chain.

At Harrisburg Logistics (dbs Advanced Install), we offer different services, including warehouse facilities, where you can store your goods and fulfill your orders. Our facilities are located in South Florida and other locations around the world. We’re open 24/7/365 to ensure the best services as possible.

Do you have any question regarding warehousing and courier services? Feel free to reach out to us at any time.