Warehousing space for effective Supply Chain Management
Category Market Trends and Industry News
The importance of streamlining warehousing space and the supply chain process has become critical in the current environment. The ability of companies to get their products to the market efficiently gives them a competitive advantage, and supply chain management has a major impact on this. The economic slowdown has promoted a greater focus on improving warehousing space utilization and best practice management. Wise companies have used this time to test the efficiencies of their systems in order to become more competitive and cost effective.
The outcome of this may result in expansion, consolidation or relocation of warehousing space within a supply chain. The increasing transport costs are forcing distributors to work much smarter and to make the big decisions that will have a long term positive impact on their businesses.
Countries such as India have identified the role that supply chain management plays in a country’s global competitiveness. They have also realized the substantial capital cost of investing in warehousing space. The Indian Government have extended interest free subsidies to investors in warehouses. This came into effect in the 2009 – 10 National Budget. A 1% reduction in the logistics and warehousing space cost could have a significant positive impact on a national economy.
For maximum efficiency, warehousing spaces need to be the correct size, height, with room for trucks to load, park and turn. The location is important being close to roads, airports or harbours depending on the nature of the business. The correct building and the location can have a significant impact on the long-term success and operating costs of a business. The businesses who are taking the bold steps to ensure that they have the most efficient warehousing space will ensure a profitable future.
Warehousing spaces are not just a place to store goods, they play a key role in helping companies meet and exceed their customer’s expectations. They can also have a massive negative impact on a business if they are not managed properly.
The performance of the warehousing space industry is largely based on both the manufacturing and the retail industries. The Ernst & Young report “Warehousing without Walls” states that warehousing space is to industry what the heart is to the body. It is extremely critical to the functioning of everyday life, the economy in general and global competitiveness.