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What is storage logistics? This term basically means the management and operations needed for the receiving, storage, and movement of goods. Sometimes referred to as warehouse logistics it involves complex planning, organisation, and implementation of many processes to ensure the smooth flow of both products and information.

Running a warehouse and storage system is important for any business as warehousing logistics are part of the supply chain. This essential segment of the logistics management system not only provides storage for finished goods but also includes packing and shipping of orders. Controlled logistics storage influences the inventory guaranteeing orders are delivered on time.

The value of warehousing in a logistics system

Matching supply and demand

Managing a large amount of inventory carefully will be economically beneficial to both your business and customers. Keeping a well-tracked inventory will prevent delays in order processing and late shipments. The logistics processes will cover identifying, categorising, and dispatching of goods to their storage location. This in turn ensures that excess products can be distributed to other locations where needed to meet your customer demands. Maintenance of a consistent stock level will also make it easier for your business to forecast production, profit, and loss.

Centralising goods

As all good are stored in a central location the receipt, storage, and distribution of goods are much simpler. Transportation costs are often reduced, and cross-docking – a process of moving goods directly from receiving the delivery with little or no inventory – is efficient and effective. Goods can be safely and securely stored in one site with the knowledge that they’re available in the right place at the right time. Optimising space capacity with high-density storage systems will also help to improve inventory management.

Packing and processing

Warehouses can also provide options for both packing and shipping services. Packing materials such as bags, cartons, and boxes can be made available, and a loading dock will allow immediate movement of goods. When this equipment is on hand your business has all the requirements needed to save time and money. Efficiency is also improved as it won’t be necessary to hire additional workers.

Providing exceptional customer service

Following the placement of a customer order, you’ll be confident in the knowledge that it can be delivered within deadlines. Speed of delivery is a really important factor in customer choice of products. A warehouse creates timely delivery as an entire range of goods can be safely stored at the required conditions of temperature and humidity avoiding any damage or spoilage. This increase in shelf-life is an additional benefit to the consumer.

As warehouses are used to store goods for a length of time prices can remain stable. When demand is high inflation rates and climatic conditions can be kept low, ensuring buyers can purchase in large quantities at the most competitive price.

Getting financial assistance

A bonded warehouse can be used as leverage for requesting any extra financial help. This type of warehousing is licensed by the government to accept imported goods for storage until customs duties are paid. Storing goods to be exported from a bonded warehouse also helps to control costs as customs duties are paid proportionally.

Financial aid will be given on the basis of secured goods and products stored on the premises. These goods are all fully insured through an accredited insurance system, and that company would pay any compensation if the need arose – minimising business risk.

Warehouse logistics benefits

Warehousing and logistics companies go hand in hand. When warehouse operations run smoothly the system experiences fewer problems and errors which maximises revenue. A brief summary of these benefits include:

  • Real-time inventory – knowing how much stock you have and where its located in the warehouse ensures accuracy
  • A reduction in returns – sending the correctly selected items first time around will make sure that there are fewer goods returned
  • Stock replenished automatically – when stock levels get low automate warehouse routines will replace and refill to prevent any out-of-stock situations
  • Warehouse space is increased – less floor space for workers will free up a huge portion to optimise space capacity
  • Improved customer services – with stock traceability, fewer picking errors, and optimised processes the performance of your business will be enhanced
  • Spot stocking – manufacturers that produce seasonal products will find a warehouse technique favoured by the agricultural sector useful as a number of different warehouses close to key markets are used to reduce transport time of fresh products

Warehouse management systems

Advanced warehouse management systems – also referred to as WMS – are an invaluable tool to help you meet the needs of your warehouse. They comprise of an inventory control system, all warehouse logistics, management insight, and order fulfilment. Many will offer mobile tools to enable managers and employees to control the system by smartphone. With this additional help and support, you’ll be able to greatly improve your existing logistics and meet any customer demands.