Supply Chain Logistics - Effective storage and warehousing.
04/05/2011
Effectively managing warehousing including both products and raw materials - their distribution and their shelf life - and whether the product is perishable or not - is a key part of effective storage and warehousing. It is now recognised that the ability to manage this aspect of a company’s supply chain logistics is a potential major source of competitive advantage as opposed to just another source of cost within the supply chain.
It will only ever be possible to achieve this advantage if managers managing warehousing and a company’s supply chain logistics understand all the internal operations at play and can leverage then to their greatest advantage. This will invariably include procurement. It therefore goes without saying then that procurement and negotiation skills go hand in hand. Being able to leverage a keen cost for raw materials can put a company at considerable competitive advantage over a rival. Sometimes this comes down not just to negotiation skills but to understanding bulk buying as well as passing on a portion of this saving to the consumer or purchaser and where possible withholding some so that this can be added to the overall profit margin.
Staff motivation and safety is also seen as important aspects within today’s warehouse.
The main factors in successful warehousing and supply chain logistics are understanding the supply chain, understanding warehouse process and operations, and the relationship between technology, warehousing and profit and loss.
