WAREHOUSES AND ITS PIVOTAL ROLE IN SUPPLY CHAIN

By Admin

A new entrant to the world of supply chain management system will customarily come across the term “warehouse”. Warehouses are the spaces set aside to store goods that evolve through supply chains. Basic functions of a warehouse include providing storage facilities for raw materials that will be procured from their suppliers as well as for storing finished goods before deploying them to distributors. The word “storehouse” can be used as a synonym for a warehouse. Definitions around the globe will insert the phrase “planned storage” while introducing warehouses. This is evident from the fact that warehouses cannot be allotted aimlessly to the extremely diversified assortment of goods. Depending upon the characteristics of the goods that need to be stored, the supply chain solution companies would work towards allotting perfectly suitable warehouses to their clients.

Warehousing acts as a very important mediator that facilitates the transportation of these goods. Top logistics companies like Aegis logistics Private Ltd, Agarwal Packers, and Movers Ltd, DHL Express India Pvt Ltd, CTC freight carriers Pvt Ltd, etc provide warehousing facilities in India.

Before any producer starts with the process of manufacturing, they will have to procure raw materials. Perishable or not, these raw materials will have to be procured and then stored into warehouses to ensure efficient utilization and sustainability of the same. As and when the demand arises, over a period of time, the raw materials are used in a way that they are converted into finished goods. When the finished goods are ready, they will again have to be transported to warehouses. This is done to keep the goods safe and also ensures speedy supply. The finished product will be dispatched whenever demand arises.

Another function that a warehouse can provide is that of information. To give a detailed explanation, let us assume that inventories from a certain manufacturer have been stored at a particular warehouse. An accurate count of the inventories is of prime importance for the warehouse keeper. This helps in keeping a check on the number of goods present in the facility at any point of time. Technology in the form of barcode scanners as well as labor is used to track the whereabouts of goods in the storage facility.

Few requirements quintessential for optimal warehousing include its condition, its location, its proximity to the road, rail or seaports for efficient transportation, basic facilities and services provided, access to labor, etc. These essentials act as attractive propositions for manufacturers as well as suppliers in their quest for finding the ideal storage house. Inadequate capacity of warehouses, its non-fruitful and inefficient operations may act as hindrances in the search for optimal warehouses. These obstacles need to be tamed for clients to be contented with what they ask for!

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