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If a company adds a warehouse, what happens to total logistical cost in terms of Less Than Truck Load or Truck Load, and local pick up and delivery?

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Question added by zohair Siddiqui , Warehouse Associate , Numerous Warehouses
Date Posted: 2015/01/01
zohair Siddiqui
by zohair Siddiqui , Warehouse Associate , Numerous Warehouses

Depending on the network design, total logistical costs increases.

 

Less than truck movement will increase as geographic postponement increases i.e LTL loads will increase as their is more inventory to service the client and clients will be service based on their geographic location

 

As far as truck loads are concerned, TL shipments will decrease as their are more location to service the client and TL will be restricted to inbound only or  truck loads will increase between the warehouses for safety stock purposes.

 

Local pick up and delivery will remain the same as consolidation of loads will be done at the local warehouse for both inbound and outbound shipments for example, courier companies gather all cargo from their clients in a geographic region by one truck and brings that truck to a warehouse. In the warehouse, the cargo is sorted based on their zip or postal code and than the cargo is forwarded based on regionality.

 

Suggestions are welcome

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