What Makes Warehousing An Essential Part Of Supply Chain?

As the name suggests Supply Chain is a term used to define a series of various interlinked activities which starts with raw material procurement and ends with the delivery of desired/ produced goods to the end user.

Generally, there is a time gap between order procurement and order fulfillment. In this meantime, the goods are stored safely in a place called Warehouse. So, warehousing or storage refers to preserving the goods in safe custody until they are dispatched. All the elements of Supply Chain Management or SCM works cohesively to maintain an uninterrupted flow of goods from its source to the final destination.
 

Warehousing is not a new concept in business, it has sustained decades of usefulness. If we talk about today, warehousing cannot be just referred to as storage of goods rather it is a whole group of activities responsible for the safe custody of goods resulting in timely fulfillment of orders. 

All the activities in warehousing help in optimizing the process of the supply chain. By reading below the mentioned points you will clearly know the important role played by warehousing in supply chain management:

Seamless Production: For an uninterrupted production and flow of goods is essential for producers to maintain a stock of raw material ready for production. Warehousing bridges this gap by providing an on-time supply of the required quantity is that the production doesn't stop. 

Fulfilling Periodical Demands: There are many businesses such as clothing business which has a seasonal demand. The woolen clothes production is completed in summers to fulfill the demand but these produced clothes need to kept safe somewhere and that place is a warehouse.

Benefits of Bulk Production: By investing a little in warehousing facilities a businessman can take advantage of large scale productions. These goods produced in large quantities can be stored in these warehouses and can be sold as per the needs of the market.

Fast delivery: By having warehouses in nearby locations. Order procurement becomes easy and safe. Perishable goods such as fruits, vegetables, and almonds need proper cold storage. These warehouses are created nearby the store for quick order fulfillment.

Custom Clearance: When goods are imported or exported to a foreign country, it needs to be custom cleared before it is handed over to the importer. Till the time goods are custom cleared, these goods need some safe storage. These type of warehouses are called bonded warehouses which are created by government nearby custom ports.

Conclusion

All the elements of Supply Chain are definitely an integral part of smooth working. A business can choose between various warehouse options available as per the needs. A smart business should use warehousing services strategically in its supply chain for creating time utility. If you own a large business it is better to own a personal warehouse but if you have a small business, it is better to rent out some space. You can choose from various service providers, providing services of renting a warehouse at very low costs.