Sep 07, 2018
Why have multiple warehouses? We will give some input and reasons why…
Companies can choose between operating between single centrally located warehouse and operating multiple warehouses throughout a particular area. In multiple warehouse operations, companies spread out to cover territories and provide easy access and delivery methods to customers. One can debate which is the most efficient and effective – one or many. Ultimately, it all comes down to your operations of your business and how do you want to manage your customers.
Here are the advantages of having multiple warehouses:
- Quick delivery: With multiple warehouses, delivery time can be cut down meaning that you can move more products at a quicker pace.
- Low transportation costs: Products will spread out over a larger area when you have multiple warehouses, the cost of delivering purchased products significantly decreases as warehouses are in the vicinity of customers.
- Easy accessibility: Instead of having your products in one place, they will be in multiple places. Having your products spread out means having easy access to multiple warehouses rather than one centrally located warehouse.
- Uniformity of prices and quality of products sold is maintained at all warehouses.
- If one warehouse has short supplies, then it can be immediately replenished from another warehouse so that customers can easily access products.
- There are low operating costs hence prices are not increased to cater for operations.
- Utilizing technology to manage all of the warehouses and products. With technology one can pinpoint everything and ensure that the customer is satisfied.
In summary, look at your business and how you ultimately want to service your customers as this will be a good indication of how many warehouses you may need.