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The Value�Of�Storage�In�A�Logistics�System

Published On: Mon, Jan 02, 2023

The Value�Of�Storage�In�A�Logistics�System-featured-image

Most companies that manufacture, import, export, or transport goods must have warehousing facilities. 

Although you may consider it to be a wasteful expense, it can actually help you save money and increase your productivity. 

When an order is placed, the customer journey is not over. 

A warehouse helps you keep better track of your inventory and guarantees that customers will receive their orders on time, both of which increase your profits.

Improved Inventory Control

Only 8% of small businesses keep track of their inventory. 

Only 24 percent of businesses have no inventory at all. 

This frequently results in delayed order processing, late shipments, and subpar customer service.


Warehouses give your products a centralised location, which makes it simpler to keep track of and manage your inventory. 

You can more effectively store, ship, and distribute goods if you invest in a warehouse. 

You will be aware right away if something is out of stock so you can offer customers alternatives rather than making them wait for days or weeks.

More Efficient Packing and Processing

Most warehouses provide the equipment and supplies you need to store, move, package and process orders from customers. Pallet racks, loading docks and packing materials are just a few to mention. This way, you'll have everything in one place, which will save you time and money.

A warehouse enables businesses to pack and grade their goods according to legal requirements and customer needs. The logistical cost is reduced, while flexibility is maximized. This type of facility can be an ideal distribution location, eliminating the need to arrange for pickup and hire employees to manage fulfillment.

Superior Customer Service

More than 63 percent of online customers expect to know the estimated or guaranteed delivery time. Approximately 88 percent would pay more for faster delivery. In fact, delivery speed is one of the first things buyers take into consideration when choosing a shipping carrier.

As a business owner, you want to keep your customer satisfied and engaged. If you fail to deliver their orders on time, your reputation will suffer. This can hurt your revenue and brand image.

Warehousing allows for timely delivery and optimized distribution, leading to increased labor productivity and greater customer satisfaction. It also helps reduce errors and damage in the order fulfillment process. Plus, it prevents your goods from getting lost or stolen during handling.

Ensure Price Stabilization

The demand for goods and services varies from month to month and year to year, depending on customers' income, government policies, employment rates, climatic conditions and other factors. A warehouse allows you to store your products for a later date when the demand is high. This helps ensure price stabilization and reduces revenue losses.

Let's say your company manufactures and distributes sports equipment. If you offer ski accessories, you can store them in your warehouse rather than selling them for next to nothing when the cold season ends. This way, you'll maintain consistent stock levels and maximize your profits.

Improved Risk Management

Warehousing not only protects against price fluctuations but also provides safe storage of perishable products. Depending on your needs and type of business, you can lease a warehouse equipped with refrigerators, freezers and optimal temperature control.

Plants, artwork, candles, food and medications are just a few examples of goods that require cold storage. A warehouse that offers this service will store your goods at the right temperature, preventing spoilage and changes in color and texture. This also helps extend the product’s shelf life and ensures customer satisfaction.

Additionally, the products stored in warehouses are typically insured. This means that you have higher chances to receive compensation from your insurance company in case of damage, fire or theft.