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Why warehousing is crucial in logistics systems

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If your business doesn't use a warehouse to maintain control over your goods and inventory yet, now might be the time to start. Here's why.

Warehousing improves inventory management

About 8% of all newly-founded businesses do not regularly keep track of their inventory. 1 in 4 don't even have an inventory, to begin with. Of course, in the early days of your company, you might be overwhelmed with tasks related to setting up your business. However, this lack of appropriate organisation can severely impede your output as you struggle with late shipments, slowed-down order dispatch, and poor customer experience.

Luckily, you can improve your inventory management with a spacious and well-organised warehouse. They provide a centralised location for your goods - this is why many companies are investing in warehouse maintenance and management. A warehouse facility allows storing, shipping, and distributing of goods with utmost care and efficiency.

So, if you ever run out of products, your regular inventory checks will show this immediately. Hence, you will be able to contact your customers and offer a different product or some other solution that will reduce the waiting times. That is how good inventory management helps you boost profits or help retain customers.

Efficient packing and shipment management

Another reason why good warehousing is essential for logistics systems relates to the equipment and supplies you have access to when you have a warehouse. So, you can make use of pallet racks, a variety of packing materials, loading docks, forklifts, and other supplies that make storing, packing, relocating, and processing a lot easier. Essentially, your logistics will function impeccably since you have everything you need in one place. 

Warehouse space also allows you to pack goods according to established legal proscriptions and customer preferences. Your logistics costs will be significantly smaller as you don't pay penalties or reimburse customers for improper packaging. In addition, you also do not have to hire distribution and pickup from external service providers.

Improved customer satisfaction

The option to access accurate information about shipment status is almost a given in today's business climate. More than 65% of customers want to see the estimated delivery time, whereas 88% are willing to pay more for fast delivery. Customers consider fast delivery a crucial deciding criterion when they decide which shipping provider to choose. 

Getting your package quickly is exceedingly valued among customers and is much like choosing a good moving company. If you happen to be delivering or receiving many goods, experts at Pro Movers Miami say that staying within deadlines and thus ensuring everything runs smoothly is crucial. Their relocation services run on the same principle. If they can organise a swift and safe relocation to Miami, customer satisfaction increases, and their business booms.

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Warehousing enables price stabilisation

Another benefit of warehousing for logistics systems lies in the possibility of fixating the prices of goods and shipments. Demand will fluctuate from month to month depending on customer preferences, trends, government policies, climate conditions, and outstanding situations (e.g., the COVID pandemic). In that sense, a warehouse allows you to plan out your logistics well ahead of time as you have enough space to store your products for a later date. Therefore, any surplus of goods you have will not go in vain. A warehouse facility allows you to achieve price stabilisation and mitigate the loss of profit in the long term.

Let's say you are running a company that produces goods primarily purchased seasonally. For instance, sports equipment such as skiing or hiking boots will be in demand in the winter. Instead of being forced to introduce colossal price reductions and discounts, you can safely store the goods in your warehouse. This will lay the pressure off your logistics team, the goods distribution, and the overall organisation of your company.

Warehouses are essential for risk management

Aside from price stabilisation, warehouse facilities are of great help in keeping your goods safe. With a warehouse, you have unlimited safe storage opportunities, allowing you to trade or manufacture using perishable products. You can rent a warehouse that has state-of-the-art refrigerators, freezers, ventilation, and temperature control systems that ensure you never waste money on replenishments of goods.

Another advantage of integrating warehousing into your logistics planning is the insurance of goods kept in the facility that you can count on. So, your insurance company will compensate for any type of damage or losses caused by environmental factors or human error. For instance, a fire or a strong storm can backtrack your organisation so much that it may lead to months of trying to cover up the losses. However, any attempt to get back on track after such an unfortunate event is easier to execute when you receive the warehouse insurance reimbursement.

Warehousing is crucial in logistics systems as it offers a range of different possibilities that can help you bring your logistics to the highest standard. So, aside from food, you can store anything from plants, seeds, art, candles, and medication. These products have to be stored in specific temperature conditions to curtail spoilage, breakage, or changes in colour or efficiency. So, warehouse storage allows you to maximise the product's shelf life and improve efficiency and customer satisfaction.

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