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How Do Local Warehousing and Distribution Help Businesses in Managing Inventory and Cost-Cutting?

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The terms “Warehousing and distribution” which are mostly used interchangeably are the core play in the process of logistics. Both warehousing and distribution are not simple subjects to master. There are chances of new practices adopted by transportation companies because of technological innovations or changes in consumer preferences. Before directly dragging into the core concept let’s understand how warehousing and distribution work.

Warehousing:

Warehousing is the commercial space that builds with the basic purpose of supply-driven and buffer-related functions which includes storage and inventory holding. We can store the inventory and stocks in warehouses for weeks or months. 

Services available in the warehousing in Surrey:

  • Cross-docking
  • Consolidation of less-than-truckload shipments
  • Container de-stuffing
  • Storage and labelling  


To accelerate the supply chain, inventory would be maintained efficiently and effectively.

Distribution: 

 

The process of “Distribution” can be considered as throughout i.e demand driven. Distribution centers are responsible for fulfilling orders. This specialized hub handles shipments. Here are some of the functions of the distribution center. 

    • Strategically store final goods
    • Streamline the sorting and packing process
    • Labelling of the shipments
    • Deliver the goods to the final destination
    • Handle order fulfilment and other values added services
    • Involved with reverse logistics


Don’t you think function sounds so easy? But supplying goods through multiple channels can be challenging. Constant pressure from buyers and stores and coping with inventory demands can be a real struggle.

OTT transportation and warehousing, a Surrey-based logistic company follows the best practices for inventory management in warehousing that help us in better processing.

How Do Warehousing and Distribution Help in Managing The Inventory?

Local Warehousing and Distribution

As mentioned this is not an easy task but warehousing companies do their best to manage your inventory. OTT Warehousing usually follows the “7Rs of the logistics” that accelerate the smooth functioning of warehousing and distribution vancouver. 

    • Using Money-Saving Options: In warehousing and distribution centers while doing inventory management opt for economical options. Warehousing while managing the inventory figure out the ideal option based on the product for picking and storing your goods to cut the cost. 
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    • Restructuring The Floor Plans: This can be a quite skeptical process, As the supply and demand of the product fluctuate usually, you should make changes in the storage also. Warehousing and distribution centers modify the floor plan according to the changes and the product and make it more efficient. 
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    • Quality Management: We use quality management tools to manage quality. Warehousing has updated the old inventory management systems that can efficiently and effectively manage the quality of the process. 
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    • RFID Tags or Barcodes:  OTT Transportation provides some sure ways to improve customer experience and improve visibility throughout the process of the supply chain. These tags reveal the data of stock that includes color, size, destination, weight, and many more. 
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  • Reverse logistics: Warehousing and distribution also handle reverse logistics conditions that would be based on the return policies of the companies. 
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These points will surely give you a fair view of how warehouse and distribution play an important role in the management of your inventory. A supply chain manager should, in short, keep in mind that the right product must be delivered to the right customer in the right quantity, in the right condition, at the right location, at the right time, and ultimately, at the right cost.

Principles of Warehousing and Distribution

A part from the benefits provided by Indiana warehouse, it has several principles which are adopted by every renowned transportation company to ensure quality service to its clients. Here is a glance at these principles.

Accuracy 

 

It’s difficult to store countless items and make sure the right product is transported at the right time. The concern of customer satisfaction depends heavily on order processing, accurate picking, and packing. Employees at OTT transportation receive high-quality training to empower them to make informed decisions right away.

Operational Efficiency

 

Efficiency in operations is one of the most important principles of warehouse and distribution as it is a base for routine success. It’s always a good idea to set up one-way warehouse logistics. All goods delivered into the warehouse—including returns—are handled in a single direction according to a one-way flow. With this approach, you can overcome bottlenecks and personnel may move around comfortably.

Securing the Goods

 

Warehouses are essential in the first place for protecting goods from harm, theft, or loss. It allows you to separate your stock warehouse from office space and implement a daily product workflow.

Reporting And Tracking

 

To optimise warehouse operations, tracking and reporting must be set up for each stage. Reports point to concerns with returns, late shipments, and missing goods that frequently go undiscovered daily. You can identify problem areas and put appropriate solutions in place by monitoring and reviewing every stage of your warehouse activity.

Speed

 

This is a fact that customers ages 18 to 34 want same-day delivery and more than 60% of consumers are willing to spend more for the same. These figures demonstrate that quick shipping and distribution are essential in the modern world. Where possible, your business should make it available. Using a warehouse management system can also enable you to expedite shipping.

Customer Satisfaction is a Priority

 

Receiving, stocking, picking and packing, administrative work, and eCommerce shipping are some activities of logistics including cleaning and maintenance. There should be clear and straightforward communication between delivery drivers, warehouse employees, and 3PL companies. This promotes on-time deliveries and a productive workplace. 

All these principles help in the management of inventory as well as in the cutting of costs.

Are you concerned about your company’s need for warehouse storage and distribution services? OTT Transportation is engaged in providing a wide range of the best warehousing and distribution services in Surrey that suits your needs at competitive prices. We provide affordable options like shared or multi-client warehousing, which allows a small firm to share a warehouse with another company. As a result, you pay for the area that your cargo occupies..

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