The concept of warehousing is very old. It exists from the time when the man has started producing food more than their requirement and storing the excess food. The warehousing in melbourne is important to keep the excess stock protected and to be used in future. But now in this global economy, the warehouse has become an integral part of the supply chain. Without warehousing, no supply chain can work effectively. The warehousing has become the place for repackaging, sorting, recycling and storing the products. The eCommerce industry is heavily reliant on warehousing because this helps them to secure the assortment and sell to their customers. Some people argue that warehousing can be a non-revenue heavy investment. But every business requires warehousing services if they want to be agile, responsive and effective in their supply chain. Here are the few benefits of warehousing
The first advantage of the warehouse is the consolidation of the assortment. Every company buy multiple things from numerous suppliers. They need a place where their all-input materials can be stored. This helps them to keep in-hand inventory for production or retailing. The warehousing helps in consolidation. This makes operation and inventory management easy. Just think, if any company doesn’t have a warehouse and get a direct supply of all the material, then it will add time lag in their good receiving and processing. In the eCommerce business, warehousing is very effective for eCommerce order fulfilment. The eCommerce company take all the deliveries from their suppliers in their warehouse and then dispatch to their customer as per their orders.
In the eCommerce industry, the concept of cross decking is very popular. In cross decking, the supplier makes deliveries to the warehouse and then goods are dispatched to the customer as per their orders. In cross decking, the inventory is not carried in the warehouse, whereas the warehouse is used as a transition point of inventory for the supplier to the freight forwarder. The warehousing is necessary when you have to opt for cross-docking because you will be needed a protected area, to perform cross-docking. This way the inventory will be safe and the damages will be reduced. Otherwise, if there will be no single space for cross-docking then suppliers will not be able to deliver the stock on time.
In the eCommerce business, the eCommerce companies buy in bulk and then sell to their customers. Buying bulk helps them to negotiate better rates. Warehousing is needed to get those bulk deliveries and then those items will remain stored in the warehouse. This helps to improve the eCommerce order fulfilment, because when the inventory will be available in the warehouse. It will be easy to pick and pack, then ship it to the customer. This will reduce the customer’s lead time and also you can get a better margin due to bulk buying. The warehousing has made it possible to achieve a higher rate of eCommerce order fulfilment, which is critical for business success.