The Role of Warehouses in Supply Chain Management
The warehouse is a crucial part of the supply chain. Bridging the gap between the production of goods and their consumption, the warehouse allows products to be held securely, packed efficiently, and distributed to their final destination. By consolidating stock into a single, central location, warehouses make planning the logistics of the rest of the supply chain much easier. As a result, warehousing is integral to the delivery of a positive customer journey.
Allegro Logistics provide integrated e-commerce fulfilment solutions to innovative brands across the UK. We’re passionate about helping businesses realise their ambitions and start to see the growth they deserve. With cutting edge technology, reliable processes, and our safe and secure warehouses, we ensure your supply chain is as lean as it can be.
Below, we explain the vital role warehouses play in effective supply chain management.
Safe & Secure Storage
Warehouses provide a safe and secure location to keep goods in during the period between production and shipping. They are typically fitted with comprehensive network of CCTV and security alarms, advanced fire and smoke detection systems, and access control. The use of inventory management software also allows businesses an accurate, up-to-the-minute idea of their stock levels, providing peace of mind and total stock accountability.
Secure storage prevents products from being damaged or spoiling and ensures orders reach customers in tip top condition. It also minimises the risk of break-ins, theft, and vandalism. It goes without saying but knowing that your stock is safe from harm and ready to go as soon as an order comes in will truly enhance your supply chain.
Optimised Order Handling
Warehouses are designed with efficient order handling in mind. The latest technology helps streamline picking processes, allowing a large volume of orders to be collated at high speed. Warehousing services also generally include efficient contract packing using high quality materials and custom promotional packaging. This means they help provide a positive ‘unboxing experience’ for customers, and therefore play an important role when it comes to developing brand loyalty.
Logistics Planning
Warehouses rationalise and streamline logistics planning. That’s because they offer a single location for the storage of all goods, meaning less transportation is required to coordinate the supply chain. This makes it easier to oversee every aspect of your business’ fulfilment, and as a result drive performance improvements across the board.
Inventory Control
Efficient inventory control can make a big difference when it comes to customer satisfaction, and warehouses play a key role here. Finding a balance between having a sufficient volume of products in stock and the cost of storage is important to get right. If a customer orders something that turns out to be not in stock, their experience of your brand will be affected. Equally, a larger inventory than is necessary may mean you have goods leftover and prevent you from developing new products until they are sold. Warehousing with a third-party logistics provider can do wonders for your business when it comes to getting this right. Highly experienced in the industry, they can help you figure out the right stock to keep at any one time.
Efficient Order Fulfilment
Warehouses have highly streamlined processes and cutting-edge technology to support them. This is to ensure all orders are fulfilled quickly and accurately, and goods are dispatched within the correct timeframe. As a result, they play a pivotal role when it comes to supply chain efficiency. If warehouses are not functioning effectively, it can have a significant impact at every subsequent stage of the chain. More than that, warehouses also have to function effectively in reverse. Product returns management is essential to the supply chain, and cannot be overlooked.
See more: Product Returns Management – 6 Best Practices to Follow
Flexibility
Warehouses play an important role when it comes to dealing with demand. The reason for this is that you can have more goods in stock at any one time. That means, if there is a sudden surge in demand, you can deal with it. This might occur during occasions like Christmas or Black Friday, or even if you run a special promotion and see a consequent order surge. Third-party warehousing allows you to scale up depending on your requirements. Equally, if you go through a quiet period, a third-party warehouse can easily scale down to suit and allocate less resources, saving you money in the long run.
Find out how we helped a whisky subscription box business scale up >
Risk Management
Third-party warehousing can enhance your business’ risk management because it means you can store larger quantities of goods at any one time. This means that if there are price fluctuations from suppliers or shortages in the market, your business will have more insulation and security. For businesses of all scales, having this safety net can make all the difference when unforeseen events threaten to wreak havoc and disrupt months of growth.
See more: Benefits of Outsourcing Logistics
Secure Warehousing and Inventory Management with Allegro Logistics
Allegro Logistics are the comprehensive e-commerce fulfilment solution for businesses across the UK. We’re committed to helping our clients drive efficiency across their supply chain, boosting customer satisfaction and driving their growth. We’ve worked with a wide range of clients at a variety of scales and supported them through the delivery of a range of projects. From storage to coordinating international shipping to the creation of special marketing projects, our services are designed to streamline the next phase of your growth.
Check out our case studies or contact us for more information!
Read more: 7 Tips for Improving Supply Chain Efficiency
Read more: Pick and Pack – What is Pick and Pack Fulfilment?
