What is the role of facilities in supply chain management


What is the role of facilities in supply chain management?

Logistics warehouse management is a key element in the supply chain. Today, the technological advances and increasingly specific requirements of our modern customer have made the supply chain optimization more delicate and painstaking. To stay ahead of the competition and achieve your goals, you'll need to be aware of the key role your warehouse plays:
The functions occupied by the logistics warehouse within the Supply Chain
Much more than just a storage space for goods, it allows you to perform order picking and shipping operations in a timely manner and meet the expectations of your customers.
Know that to stand out from the competition, it's your storage methods and solutions, your volume of activity and your management of the center that will make the difference.
Here are some of the functions that your warehouse should occupy:
Storage: The basic function of a logistics center, we use its space to store items before shipping them.
Price stabilization: storing references helps the market to stabilize and not succumb to seasonal hazards; in any sector of activity when demand increases, prices tend to fall, and when it falls, to increase. Thanks to the warehouses, companies can buy goods in advance in order to be able to respond to any peak demand.
The maintenance of the goods: the professionals keep reminding you that it is in your interest to limit your stocks. This recommendation appears necessary in view of the deterioration and the risks to which stored goods are exposed. It is therefore essential to put in place all the necessary measures to preserve the state of goods in the shelves.
Packaging: nowadays, many warehouses pack the goods and take care of the execution of the order preparation process.
The main advantages
Here are the main benefits of storage:
Higher efficiency: a logistics provider does not allow you to decide on the design of the industrial building or the storage solutions used.
Inventory control: If you have your own center, you will be able to keep your stocks afloat, avoid breaks and make more accurate forecasts.
More economical distribution: Finding a service provider with facilities next to your business can be complicated and can lead to additional costs.
Better service: By storing your goods yourself you will be able to manage order picking processes as well as all the elements affecting your customer's satisfaction.
More optimized logistics : By storing your products, you will keep control of your costs, your personnel, your processes, etc.
Having state-of-the-art facilities will not be enough to beat your competition; It is also important that you know how to manage your warehouse efficiently. Your managementdirectly affects your supply chain, and therefore the service you offer to your customers .
Also, it's by adopting an optimal management that you will manage to make the processes of your company more fluid ; you will control your inventory levels, risks and costs.

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