Business Owners Must Understand This About Warehouse Management

The main purpose of the warehouse is to facilitate the movement of goods through the supply chain to the final consumer. There a lot of methods used to lessen the need to hold inventory, such as express delivery, a manufacturing system that is flexible, and also the visibility of supply chains. In the context of the supply chain, the warehouse or 自存倉 has functioned as a public storage:

Inventory holding point.
Consolidation center.
Cross-dock center.
Sorting center.
Assembly facility.
Trans-shipment point.
Returned goods center.

This is because warehouses operate as an integral component of the supply chain, the broader context of business strategy must be considered when making important decisions about these warehouse facilities. Some things to consider include:

Market/industry trends. Some industries experience significant developments and changes, mainly triggered by technological developments. This has an impact on the needs of warehouse design, both in terms of warehouse technology, type of warehouse, layout, and location of the warehouse, according to market needs and industry trends.

Company goal. The company’s goal will determine the choice of warehouse design. Different company objectives will have an impact on warehouse management policies. The company’s objectives will determine the company’s positioning, the value proposition offered, and the marketing strategy implemented. Everything will have an impact on the choice of warehouse management design and policies.

Business plan. The company’s business plan contains projected target markets, potential sales, and the development of the company’s service points, which have an impact on the decision to develop a warehouse and distribution system that will be run.

Supply chain strategy. Each choice of design and warehouse policy is determined by the company’s supply chain strategy. The supply chain strategy will have an impact on the number, location, systems, technology, and layout of the warehouse, as part of the company’s supply chain system.

The level of customer service. The level of customer service determines the responsiveness of the company in serving customers, including the response in the speed of fulfillment of inventory following policies and warehouse systems operated.

External factors. External factors that affect warehouse design and policy include regulations in the field of building construction, health and safety, environment, manual handling, working hours, fire prevention, packaging, food safety, and so on.