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The Major Role of Warehousing in Supply Chain Management


The purpose of supply chain management is to ensure an unbroken flow of merchandise from raw material collection to final product distribution. Warehousing in Surrey plays an essential role in streamlining the supply chain when it comes to handling all of the moving elements. It is one of the least-discussed aspects of the supply chain process, yet it is one of the most critical. The effectiveness and convenience of your entire production and distribution strategy may be increased with the right warehouse. The major role of warehouses in supply chain management is discussed below.

  • Efficient Storage Facilities: A warehouse’s most fundamental service is storage. Manufacturing, healthcare, agriculture, fashion, food and beverage, electronics, and e-commerce are just a few examples of well-known businesses that use several warehouses as storage facilities to meet customer demands in various areas. In a warehouse, materials are kept in a manner that maintains their high quality. It is much quicker and more efficient to deliver items to consumers when they are stored appropriately. You must ensure that the warehouse you choose meets your product requirements. For instance :
    • You may need to find temperature-controlled warehouses if you are supplying perishables.
    • If you need to hold imported products, you should think about using a custom bonded warehouse to keep your supplies safe until they are examined and authorized for supply to clients.
    • Order Fulfilment and Distribution: The warehouse in Surrey plays an important role in product distribution and order fulfilment. They facilitate timely deliveries by assisting enterprises in streamlining the distribution process and improving the efficiency of the supply chain. The main reason warehouses are required in the distribution process is to organize inventory before it is shipped to the consumer. The warehouse also serves as a site for sorting and packaging the products that will deliver to the consumers. Warehouses ensure that the distribution process is smooth and efficient and that the inventory remains safe throughout.
  • Location: Location is everything in life. When it comes to supply chain management, the location of a warehouse is even more important, since it can make or break your supply chain. You might choose a warehouse along your supply route or at the port where you will be delivering or receiving your merchandise. Always select a place that will allow you to move your goods from one spot to another quickly. Your warehouse’s location can help you grow your business by attracting more customers and investors.
  • Flexibility: When it comes to dealing with demand, warehouses play a crucial role. This allows you to keep more things in stock at any given time. That is, if there is a sudden increase in demand, you can handle it. This could happen around holidays like Black Friday, or if you run a special promotion and observe an increase in orders. Third-party warehousing allows you to scale up or down based on your needs. Furthermore, if you experience a slow period, a third-party warehouse can quickly scale back and use fewer resources, saving you money over time.
  • Risk Management: Third-party warehousing in Surrey can improve your company’s risk management by allowing you to store larger volumes of items at once. This means that if there are pricing variations from suppliers or market shortages, your business will be better protected and secure. When unforeseen occurrences threaten to wreak havoc and disrupt months of growth, having this safety net can make all the difference.

Furthermore, the majority of the products in the warehouse are insured.

As a result, you may be entitled to compensation from your insurer in the event of theft, fire, or damage. This can help you maintain the business with your clients and the supply chain procedures smoothly.

  1. Economic Advantages: A warehouse optimizes the supply chain by providing numerous economic benefits to the organization. When there is a high demand for your commodities, warehouses will hold them for later use. It guarantees price stability and reduces revenue losses. Seasonal product demand allows warehouses to play an important role in the supply chain. It helps in reducing the expenses associated with outbound deliveries, transportation, and shipping. Warehousing also balances demand and supply in the supply chain, enhancing a company’s revenues.
  • Reverse Logistics: Reverse logistics deals with recycling, product reuse, returns, repairs, and many other similar operations. These activities rely heavily on warehouses.  With the rise of e-commerce, retailers have to deal with an increase in the number of returns. Many clients purchase various sizes online and only keep the one that fits. Traditional store-based retailing evolved by providing changing rooms to address the issue, while online retailing is still in its early stages. To overcome the issue, many eCommerce businesses use warehouses as a processing facility to maximize the value of all products handled through reverse logistics. 
  • Improved Operations: Warehouses aid in the enhancement of the utility value of commodities in supply chain management. Warehousing ensures that your products are at the correct location at the appropriate time. It offers significant value to the company’s overall performance. Cross-docking, order consolidation, product mixing, order assembly, and many other operations take place in a single location – the warehouse, bringing value to the overall supply management system. It also aids in improving quality control in the supply chain. Warehousing ensures that no procedure is rushed inappropriately, which might lead to errors and inaccuracies.
  • Safe and Secure: An effective warehouse will improve the security of your supply chain management by reducing material deterioration and delays. Having a warehouse ensures that your goods are safe and in good shape, allowing you to improve your supply chain. Suppliers may rely on your warehouses if your goods are of high quality and readily available. 

Looking For Warehouse Services?


OTT Transportation Services offers complete warehouse facilities in Surrey, Vancouver, BC-Canada. We are dedicated to assisting businesses in realizing their goals and experiencing the development they deserve. We ensure your supply chain is as lean as possible by utilizing cutting-edge technology, trustworthy processes, and our safe and secure warehouses. 

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