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Choosing to have only one warehouse versus several ones is something only a serious assessment of the organization data, there's no common rules !
Most of the advantages of a decentralized warehouses, I point out the following:
* Much better customers covering area means faster delivery times to them.
* Better adaptation to customers needs
* Faster decision making
* Generally transportation costs is less expensive
* More empowerment of workers since they are more involved in the decision making process
* Better responsiveness in emergencies causalities,
you 're agree with me that a fire or a natural disaster at one store location won't be in all cases as a disaster at a centralized warehouse.
1. Uniform policies not Followed: Under decentralization, it is not possible* to follow uniform policies and standardized procedures. Each manager will work and frame policies according to his talent.
2. Problem of Co-Ordination: Decentralization of authority creates problems of co-ordination as authority lies dispersed widely throughout the organisation.
3. More Financial Burden: Decentralization requires the employment of trained personnel to accept authority, it involves more financial burden and a small enterprise cannot afford to appoint experts in various fields.
4. Require Qualified Personnel: Decentralization becomes useless when there are no qualified and competent personnel.
5. Conflict: Decentralization puts more pressure on divisional heads to realize profits at any cost. Often in meeting their new profit plans, bring conflicts among managers.
Advantages Of Decentralized Stores
1. Controlling a and storing function can be accomplished easily.
2. Delay in material handling will be eliminated.
3. Minimizes the chances of loss by fire.
4. No need of internal transportation costs.
5. Specific needs of individual departments can be easily fulfilled.
6. Saving in material handling cost
1. Time factor: Materials/Products are available easily at locations with less transportation requirements.
2. Different pricing policy can be adopted.
3.Only Required items need be stored--saves space and hoarding of slow moving commodities.
4.It help inter store transfers to other units at less expense and costs-economy in transportation on emergency situations.
5. More control and accountability.
6. Less risk due to theft or loss, destruction by fire or calamities, deterioration due to elapse of time.
7.Unique feature of specialization due to area wise requirements.
and ..........
the dsimeecentralization advanteg with some point;
1- it pring all custmer all kind
2- it's make hige sale expit if thay open24 hour's
3- it can pring all itm's and alwcatin
Decentralisation enables to its executive to share his burden with others at lower levels because here authority is delegated.
The morality of the employees are increased because of delegation of authority. Decentralisation helps to increase employees morale because it involves delegation.
Greater efficiency and output—Decentralisation gives emphasis on care, caution and enthusiastic approach to the work which in turn results in increased efficiency and output. This is possible because it involves delegation of authority and responsibility.
Better Co-ordination—The various operations and activities are co-ordinated in a decentralised set up.
acilitate effective control and quick decision-Decentralisation enables to measure the work according to standard easily and quickly. This facilitate taking up quick decision.
