When you have your own small business, it’s likely that you want to grow your business over time. One of the best ways to expand a small business is through an effective warehouse logistics system.
Warehouse logistics systems can help you improve your business in ways you wouldn’t think about on your own. But what exactly is warehouse logistics?
Warehouse logistics is a system that manages the back end of a business. Everything from how and where your products are stored, how much of your products are stocked, and even shipping items out to customers. Without an effective warehouse logistics system, your company could be limited by stagnant business operations.
How Does Warehouse Logistics Work?
When you are running a business, the whole point is to create a system that runs itself. Warehouse logistics is the perfect example of creating a system that does just that.
You don’t have to build it yourself, either! There are many companies and warehouses out there that can help you ensure that your products are handled with care.
In order to give you an even better understanding of how warehouse logistics works, here are some frequently asked questions regarding warehouse logistics.
Why Are Warehouse Logistics Important?
Warehouse logistics are important because they help to keep the behind-the-scenes aspects of your business running smoothly. Interactions and product designs are great, but if you cannot properly store, regulate, and distribute your product, you will witness a decline in your business success.
What Are the Two Major Operations of Logistics?
The two major operations of logistics are transportation and storage. The whole purpose behind setting up systems intended to regulate your products is to make sure you can properly store and send products in the most efficient of ways.
Is Working in a Warehouse Considered Logistics?
Working in a warehouse can be part of warehouse logistics, but just because your business operates out of a warehouse does not mean you are implementing proper logistics. The right warehouse logistics will make sure that you always have access to products when you need them.
Not only will the proper warehouse logistics make sure you have enough inventory to fulfill incoming orders, but it will also help you manage products until they are finally dispatched. All the while, statistics can be updated and kept on hand so that you remain informed about how your products are fairing and what customers are ordering.
What Are Inbound Logistics?
Inbound logistics are similar to your own personal logistics. However, they have to do with incoming products rather than outgoing orders.
These logistics refer to keeping yourself stocked with materials and goods for you to send out at a later date. It also refers to the delivery methods regarding how incoming goods arrive and what kind of storage you will need to hold onto them before they are sold.
Example of Warehouse Logistics
A great scenario of a warehouse logistics system would be a T-shirt company. As a T-shirt company, the owners would need to stock up on multiple sizes of each shirt, types of shirt materials, and designs.
With warehouse logistics, the products are delivered directly from the manufacturer and stored until orders are placed by customers. When orders are placed, the warehouse will be notified of the information pertaining to the customers who purchased T-shirts.
When these orders are sent out, the inventory values will be updated to reflect current volumes of T-shirts, which lets you know how many of each T-shirt you have left. This helps you know when to restock each T-shirt as well.
After a while, the T-shirt company will be able to gather analytics regarding their sales. Details like the sizes that sell best, the most commonly purchased designs, and the materials most often purchased can inform the T-shirt company of which T-shirts to stock more of in the future.
Importance of Warehouse Logistics
Now that you know more about warehouse logistics and how they work, you can figure out if you really need warehouse logistics for your company. Here are some simple ways that warehouse logistics can help businesses, and from here, you can determine if your company could benefit from them.
When you have a good system in place for your warehouse logistics, you will know exactly how well your products are performing, how often they are purchased, how much of each product is left in inventory, and other important information that can help you make advantageous decisions regarding your business.
Since you have a warehouse team that is constantly monitoring your stock levels, you will remain updated on your inventory, such as what is left and what is selling fastest. You can even set up the warehouse to automatically restock your items directly from the manufacturer when levels are low.
A major part of warehouse logistics that isn’t talked about very often is the storage method aspect of the model. When you are determining where your products will be kept, you need to choose an environment that best suits your stock.
For instance, you won’t want to store frozen goods in an unregulated warehouse instead of a refrigerated location. When you have the proper location for your stock, your risks will decrease since your products will be stored in the best conditions for clients and customers alike.
When a warehouse is set up correctly, everything will be properly labeled and stored in a way that makes it possible to avoid even the simplest of mistakes. When you avoid those simple mistakes, you won’t have to worry about customers complaining or needing to return items that were either damaged in transit or sent by accident.
Essentially, you’ll be far more accurate when sending orders, which will result in fewer returns overall. Speaking of accuracy, your company will also improve in terms of efficiency as well.
If you are working with a warehouse that has teams of experienced personnel, they will know how to optimize the layout of the building. Whether it’s by keeping more commonly ordered items in places that are easy to access or storing additional stock in back rooms, the placement of stock will result in greater efficacy.
Advantages of Warehouse Logistics
When using warehouse logistics you are literally working to create the best environment for your business. Between peak efficiency and high levels of quality, your business can only improve with the help of warehouse logistics and all of the advantages it offers.
- Efficient shipping methods
- Safe product storage
- Product analytics
- Automatic restocking
- Easy financing
- Increased customer satisfaction
Disadvantages of Warehouse Logistics
While there aren’t as many disadvantages of using warehouse logistics, there are still a few setbacks that you should be prepared for and ready to encounter.
- Warehouses can become expensive.
- There is a lower return-on-product investment.
- The location of the warehouse can be far away from your target audience.
- Shipping and time expenditures are subsequently greater.
- You’ll have little flexibility and control over analytics.
Warehouse Logistics vs Supply Chain Management
While the two go hand in hand, warehouse logistics and supply chain management have different functions. As stated previously, warehouse logistics have to do with the storing, shipping, and stocking of your company’s products.
On the other hand, supply chain management is the coordination of the entire process from the initial source to the consumer’s final destination. From coordinating the delivery of your products for inventory purposes to ensuring that orders are accurately delivered to customers, supply chain management coordinates the relationship between every connection within your company.
Supply and Success
Aiming for success when selling your own products can be a difficult and stressful goal. Luckily, when you have a trustworthy location where you can manage your warehouse logistics, you can expect to experience a lot less mental stress.
Warehouse logistics will take care of your products and make sure orders arrive at your customers’ front doors in one piece. The importance of logistics is the key to long-lasting and long-term business success.