The Role Of Warehousing In Logistics


The Role Of Warehousing In Logistics

February 16, 2023

Today’s fast-paced scenario of integrated logistics has raised the bar on consumers’ expectations with a rise in the demand for same-day deliveries, 24×7 customer support, and other e-commerce commitments. Effective warehousing is one of the most important attributes of literally all businesses in general, particularly of the logistics business. The growing importance of warehousing is understood not just by the big names in the industry, but also by small and medium-sized businesses.

Let’s dive into the details of warehousing, its role in the logistics system, and how services from the best logistics company in India can benefit your business.

A good way to start is by taking a look at the main types of warehousing:

  • Distribution centers: These are large warehouses that facilitate the fast movement of large quantities of goods in the fastest time. Here goods are procured through multiple suppliers and are transported to various customers.
  • Bonded warehousing: These warehouses are used to store imported goods prior to customs duties levied on them. These warehouses best suit importers, who are permitted to keep their items duty-free even for long durations until they find their customers.
  • Climate-controlled warehousing: These warehouses offer storage spaces and services for items that need to be kept at a specific temperature, mainly perishable items.
  • Consolidated warehousing: Here small shipments are collected from various suppliers which are then combined into a bigger truckload, bound for a similar geographical location making it very economical for transportation.
  • Pharmaceutical warehousing: These warehouses and equipped for the importation, storage, and wholesale distribution of medicines. Here warehousing services are provided that prevent contamination, maintain temperature & climate control and follow and maintain stringent written procedures for distribution & recall.

Now let’s go through the various reasons that contribute to the ever-increasing importance of warehousing services in the logistics system.

  1. Effective inventory and stock control – Warehouses help facilitate seamless and efficient management of large-sized inventories where the supply and demand of goods need to be synchronized in the ever-changing market set-up. By using warehouse management systems 3pl warehouse companies in India are able to manage inventory in real-time, with the help of data of the latest orders, shipments, receipts, and any movement in between these processes. This helps in leveraging available resources whenever the market demands and helps the expansion of businesses.
  2. Efficient distribution of goods – Storage of goods in a central location at a warehouse, makes it easier to receive, store, and distribute the products. This considerably reduces the transportation costs of businesses and increases the value of goods since they are readily available for distribution whenever needed. Processes such as consolidation, assembling, mixing, and cross-docking are carried out in a warehouse all under one roof, which adds value to the logistics system.
  3. Economic benefits due to cost-effective processes – The increased efficiency in operations in warehouses, increase the economic benefits to the businesses. Expenditures such as outbound delivery costs, shipping costs, and transportation costs get cut down drastically. This boosts the competitive advantage for businesses with improvements in inventory accuracy, curtailing labor expenses, and improving customer service.
  4. Maintaining high levels of safety and quality of goods – With the use of enhanced security measures utilized by warehouses such as CCTV cameras, smoke and fire detection systems, access control systems, climate-controlled conditions, and so on, businesses can rest assured that their goods are safe and maintained as per the prescribed storage conditions.
  5. Greater efficiency in packing and processing – Businesses that utilize the services of a warehouse are able to pack and grade their goods as per the prescribed legal requirements and customer needs. Equipment and supplies that are essential to store, move, package, and process orders from customers such as pallet racks, loading docks, and packing materials are taken care of by warehouses.
  6. Top-of-the-game customer service – Almost every customer seeks to know the estimated delivery time of their consignment. Additionally, several customers are ready to pay for faster delivery. Speedy delivery is a game changer in the logistics business and a lot of customers choose companies that ship faster. Failing to meet delivery deadlines can be detrimental to the reputation of your company. Thanks to optimized distribution, warehouse management systems, and increased labor productivity in warehouses, the quick and timely delivery of goods is now possible. This creates a whole lot of satisfied clientele that is really great for your business.
  7. Improved Risk Management – The risk involved in the storage of perishable goods such as plants, candles, artwork, food, and medication is drastically reduced with the use of warehouses. Warehouses are equipped with refrigerators, freezers, and optimal temperature control mechanisms that prevent spoilage and changes in the color and texture of perishable goods. The extension of the product’s shelf life helps in enhancing customer satisfaction. Additionally, services like an insurance for stored goods in a warehouse protect your goods in case of damage, fire, or theft.
  8. Ensures Price Stabilization – The demand for goods is forever changing due to several factors based on the customers’ income, employment rates, government policies, climatic conditions, and several other such factors. A great benefit of a warehouse is that it allows you to store your products until a later date when the demand is high. This is a great benefit for ensuring price stabilization and keeping revenue losses to a minimum.

It is now pretty much convincing and evident that warehousing services play a pivotal role in logistics. Warehousing adds considerable value to the whole logistics process with offerings such as proper management of inventory and reduced cycle time. Warehousing has significantly contributed to the growth and expansion of logistics and supply chain businesses.

Why choose us for your warehousing needs?

With decades of experience in warehousing and logistics solutions in Goa, we are best suited to be your trusted business partner bringing high levels of operational knowledge and hands-on business experience to all of our clients. Our warehousing customers range from single-site standalone system operators to multinationals who have complex multi-site, end-to-end, supply chain businesses. You can adapt your needs with our robust warehouse management system with highly customizable workflows.

  • Single platform for all your freight needs
  • Innovation-driven technology services
  • Consignment tracking systems
  • Dedicated support systems
  • Customer-centric initiatives
  • Extensive industry knowledge
  • Value added services