Value Added Roles of Warehouses

Nowadays, the warehousing is playing a very important role in the supply chain management. Due to the strong competitive market nowadays, the function of warehouse is requiring to extend to a wide range. The warehousing not only provides the function of holding or storage the goods but it also provides the value-added services to improve the performance of the supply chain. The value-added services provided by warehouses are including;

  1. Buffer: The warehousing is holding the goods for the downstream stages of supply chain. It is to balance the difference goods schedules and aim to deal the efficiency in the distribution process and achieve the economic of scale.
  2. Consolidation center: The warehouse is used for accumulates and consolidates the goods from the different manufacturer or company for combined the goods into a same shipment to the customers. The consolidation can reduce the expenditure of transportation operations because it can reduce the number of shipping and the capacity of loading is sharing by few companies.
  3. Cross-dock center: Cross docking is the moving the goods from a manufacturer and the goods is directly delivers to the customer with low material handling and without storage in warehouse in a long time period. For example, the goods have sent to the loading dock from the manufacturers and the goods will prepare for the outbound activities in soon.
  4. Inventory tracking system: Many different goods from different manufacturer is storage in the warehouse and a good tracking system can provide the information about the type of goods, goods order, shipment schedule, and the sold of goods. The tracking system help the company manage the inventory in the warehouse with more efficiency and aims to reduce the cost and time in the warehouse operation process. It also prevents the loss of goods because every step in movement of goods is recording in system and the related document was signed.
  5. Reverse logistic: Reverse logistic is a customer service that helps the retailers in process of goods return to the warehouse and increases the satisfaction of retailer and customer. The reverse logistic activities include handling of returned goods, goods recycling, goods reuse and hazardous materials disposition. The retailer returns the goods to the warehouse when the defective product was return by the customer to retailer. The warehouse will responsible to checking the situation of the product such as packaging damage, due day of goods, hazardous materials and so on. After the goods was return, the process to scanning and test will make and the suitable solution from dispose management will do for the defective product either is repacking, repairing, or recycling. Finally, the final goods will distribute to the retailers.
  6. Just in time delivery: The company can gain the competitive advantage when it available delivery the right quantities and quality goods to the customer. Just in time delivery is a management that arrange and manage the goods shipment for different customer which ensure the goods is sent to them before they need to sell the goods. It can be prevent too much goods are storage in warehouse in long time because it will increase the storing and handling cost.

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