Warehousing and Logistics

What is Warehousing and How to Benefit from it?

October 25, 2020

Before we start sharing definitions with you, let us clarify why we believe you should know about warehousing, logistics and supply chain management.

If you are an online merchant and selling cool printed T-Shirts or handmade bracelets or even a start-up with limited daily orders, storing your products in a garage or an extra room at home might be enough. Tracking & following up on your inventory can easily be done by yourself at minimal cost.

If you have a more developed e-Commerce business, selling various types of products, or you are into distribution business, it is best you seek the support of experts that have the required tools and regional coverage that ease your speed to market. This support should cover both storage space and management systems that will help you to track your orders and control your inventory.

Although opting for warehousing services might seem to be an unnecessary cost at first, rest assured that on the long term it is actually a money-saving and productivity-boosting decision that is definitely going to improve your business bottom-line as your focus will remain on improving sales rather than the warehousing hassle and order management issue. In order to drive your sales, you need the right support from a string warehousing team, to manage your order preparation, dispatching and deliveries.

Warehousing Explained

Warehousing in logistics presents a well-planned space for efficient & safe storage and handling of physical goods and materials.

It is a beneficial bridge between your product and the end consumer that includes several elements such as:

  • Inventory Management
  • Packaging Solutions
  • Risk Management
  • Customer Satisfaction

A.     Efficient Inventory Management

According to the statistics, about 24% of merchants do not track their inventory or do not have inventory management systems at all. This can often be the cause of late shipments and delayed order processing. Ultimately, this can lead to poor customer experience and reflect negatively on their business.

A modern technology-supported warehouse is built on a strong Warehouse Management System (WMS) with inventory tracking being one of its main benefits. It allows you to track when stocks arrive, where they are stored, and what are their quantities. So in case some of your products run out of stock, you will simply be notified of the same, thus making it easier for you to decide on stock replenishment or offering alternatives to your customers.

B.     Effective Packaging

The main purpose of warehouse packaging is to provide protection for the products during storage time or while shipping to the end user.

But what makes warehouse packaging effective & efficient?

Typically, all warehouses are equipped with “Pallets” to store the optimal volume of products in the safest and most ideal conditions in the same time, while reducing material costs.

At the same time, while protection is number one priority, warehouse packaging solutions also need to be cost friendly. This means that packaging materials should be light, without limited impact on a product weight and consequently on shipping costs.

C.     Risk Management

Depending on the product you are selling and special storing conditions it requires, you can choose to go for a warehouse with either optimal temperature control or even ones equipped with refrigerators / freezers. This way you will ensure avoiding potential product spoilage or even changes in colour or texture of certain items, given the harsh weather conditions in our region.

Although warehouses are built in a way to minimize the risk of theft, fire, and other extreme external elements, the exposure to these risks remains a possibility. With the right insurance plan in place, one can rest assured that in case something happens, compensation is secured to cover any potential losses. 

D.       Guaranteed Customer Satisfaction

Speed of delivery is a major decision criteria when choosing a courier partner, as 63% (and growing) of online shoppers expect nowadays to know when will their shipment arrive at their doorstep.

For you as a business owner, it is particularly important to meet those expectations and keep your customers satisfied.

Having your product stored at a warehouse that have strong regional coverage will give you bigger exposure to your customers. In addition, it will reduce errors in the fulfillment process and prevent shipment delivery damages.

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