When should a company opt for a warehouse ?

Hello Team,

Distribution plays a significant role for any industry or business. An effective distribution system ensures that consumers get access to an extensive variety of goods at competitive rates. It provides an important link between producers and consumers. If the distribution sector fails to execute its role efficiently and effectively, it may lead to a rise in costs and misallocation of resources.Distribution can be precisely defined as all the logistics are involved in delivering the products and services of a company to the consumers at competitive prices and at the right time. The channels of distribution chosen by a company play a key role. Poorly chosen channel of distribution can be a big problem for any business whereas effectively chosen channels can be advantageous for any company. So, it is very important to choose the right channels of distribution for the success of your business.

Regards,

Saiyid

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None of the above. is the correct answer.

4. None of the above>>>>>>>>>>>>>>>>>

correct options have not been provided...............

I think none of the above because warehouse is for store and distribute to the store as per costumer demand.

5 Tips to chose a right warehouse

Stock is the most important aspect of any trading business; you need it in order to operate. Therefore, it is highly important that your stock is stored in a warehouse that suits your company’s needs. Very frequently, when businesses are looking to secure a warehouse premise, they become bogged down by two features: the space the warehouse can offer and where the warehouse is located. This is fair, as these are perhaps the two most important features, but it may not be as straightforward as simply looking at these features. Other factors come into play, which may not have crossed your mind, as this feature will show.

1. What requirements do you have for a warehouse?

In order to ensure you secure the best warehouse for your business, you need to ask yourself what you actually need the warehouse for. Holding stock is the obvious answer, but you must look further than this and analyse the features any warehouse can offer you. This includes:

• The layout of the warehouse – is it suited to your needs? Will it fit the way you operate?
• The size of the warehouse – does it offer you enough storage? Is it too big, which will result in lots of empty, wasted space? Or will it strike the correct balance between being full to the brim and nearly empty?
• The facilities of the warehouse – does it offer easy logistical integration for deliveries? Is it accessible for lorries?

Obviously the emphasis placed upon these various attributes will change from business to business, but it is essential you examine the facilities of the warehouse and evaluate whether they will work for your company.

2. Location

Location is a prime factor when determining what warehouse facility to opt for. Where your warehouse is based will determine how easy it is for you to distribute and receive goods. Therefore, it is important your warehouse is situated in a location that is convenient for shipping goods to your customers. That means, if your are a smaller, local business, then it will be wise to have a warehouse situated close to where your business is based. If you are a larger business, then you must ask whether the warehouse will be successful for supplying regional demand. Good locations will be have good transport routes, such as railways and motorways based near by.

3. Job market of the area

This perhaps only applies to larger firms, but is still a useful thought for smaller companies too. When you have decided roughly what location you require your warehouse to be established in, it is always good practice to evaluate the job market in the area. Will you be able to secure all the staff you need? Is it based in an area that typically has this kind of industry, which will increase the chance of you finding experienced, qualified staff?

4. Vision for the future and potential expansion

Moving warehouses is a labour intensive task, especially if you have a lot of stock to shift to a new location. When looking for a new warehouse, you should consider the longevity that it can offer. It is important that you do not outgrow the storage facilities offered too quickly, as you will then have to embark on the time and money consuming process again. Analysing figures that indicate the potential growth of your business should always be carried out before you start searching for your ideal warehouse, then you can factor this in to the space requirements.

5. Cost

The cost of warehouse space will inevitably inform your decision, but there are many aspects that relate to cost which also should play a part in your choice. For example, if your core clientèle is based within a central location, you should see how expensive a warehouse in this location is. Another alternative, is a warehouse situated on the periphery of your client base. Is the cost of the building any cheaper here? Will it cost much more in shipping? There are many costs which get overlooked when searching for the perfect warehouse facility, so try to incorporate all of them into your financial planning.

As you can see, the perfect warehouse premises for your business will be influenced by a wide variety of factors. It is important you give thought to all of them. Overlooking one of these factors can lead to greater costs and losses to your business. Overall, it is important to be very thorough with your considerations – you do not want to be repeating this process again in the short-term if it is avoidable through the decisions you make now.

Warehouse is a storage place where the goods are being stored and these goods are being used by manufacturers. Warehouse decision again depends on the nature of business we do. A company can opt for warehouse on the following circumstance where effective storage of goods are necessary.

1) For storing seasonal productions which are produced only during certain period of a year and not round the clock 365 days

2) For storing large production of goods which are produced well in advance to meet the future needs

3) For Storing of goods which are being demanded seasonally

4) For continuous production of products where supply of raw materials are needed to be supplied regularly which shall be done through warehouses

5) For fast supply of products like spare parts or perishable products, warehouse are required

6) For stabilization of prices of goods by avoiding scarcity of product supply with enough storage at ware house

Also whenever a company decides to support spares service to its Product, warehouse is the best option not only for effective storage of goods but also for faster service to customer.

This is not Area of my ​​specialization , I hope to invite you only specialists in this area

Actually warehousing and shipping cost are to different variant which should be treated separately.

You would require warehouse to store goods irrespective of shipping cost higher or lower.

Outsourcing of warehouse is done when the cost of warehousing is higher or you do not want to add to cost (fixed cost) or you have limited manpower.

If cost of warehouse is less than direct shipping cost______________--A