People often think of warehouses as one of the least concerns of the business. But is it? No.
There were times when warehouses were only used to store products, but times have changed. Yes, their primary function is still storing the goods, accompanied by other functions like packing, grading, and shipping.
Warehouses are labelled as the backbone of the eCommerce business. This line may have given the idea about their importance in business.
This article discusses some reasons why a warehouse is important for a business. So read ahead!/
Have you ever been in the market to refill the grocery at home? Mostly, people restock their groceries for a week or a month. It's simple home economics.
But when it comes to business, it's not that simple. Businesses have to keep everything in stock with future demand in mind. That's where the warehouse comes into play.
But how does the warehouse help? Warehouses provide a space where you can store the products and keep them safe until their demand rises. Plus, warehouses can
The population on the earth has crossed the mark of 8 billion people.
And with the increasing population, the demand for various things like food and other necessities is constantly rising. Which in turn increases the need for warehouses.
This is not the only reason your business should invest in a warehouse. Here we have short-listed some reasons to know why a warehouse is important for the business.
Warehouses are one of the most important aspects of the business, as they provide a location to store the products.
And if the warehouse is located at a central location (close to the customer and production facility), then it will,
Warehouses not only deal with storing but sorting, packaging, assembling, shipping, and other functions are also carried out under one roof.
As the warehouses receive the product, the workers sort them out and place them in a group on the racks.
Then when the order is received, the product is processed (if necessary), packed, and shipped to the customer.
The work is much easier and quicker if all these functions are done in one centralised location. Here the catch is location.
So, be wise in choosing the right location for the warehouse, and try to be closest to the customers and the production facility and easily accessible for the staff.
Has it ever happened that you have to make on-time delivery and run out of stock? Or restocked the wrong item or overstocked the particular inventory?
All of the scenarios described above are worse, right? But, storing the goods in the warehouse can ease the situation.
How? As described above, warehouses provide a centralised location to store the products, making their shipment much faster and the work easier.
So, with the help of the warehouse management system, you can track the inventory in a warehouse.
This tracking system will allow you to know about inventory insights, which helps to know which product is in stock and which needs to be restocked, making the warehouse’s activities more efficient.
Safety and security are non-negotiable for any business. We often get paranoid about the safety of our goods. Hence security becomes the main concern.
Warehouses ensure the products are safe and damage-free. Upon signing the lease paper, the warehouse owner becomes responsible for the safety of the products.
And warehouse owners ensure that every product is safe and damage-free.
For instance, keeping the temperature in control for all the perishable products and providing all the possible safety measures. Moreover, there is 24/7 surveillance available for security.
In case something happens to the products, warehouse owners have to pay the compensation price to their client (if there is an insurance policy, which every warehouse owner provides).
Another reason you need a warehouse is it helps to improve customer service.
What is the first thing you notice after the pricing while shopping online? The delivery time. We all want our orders to be delivered as soon as possible, and we even get ready to pay extra for faster delivery.
This competition is getting tougher as the companies like Amazon and Flipkart toss the coin of the same-day delivery feature.
As a business owner, you want the customers to be satisfied with your services and deliver faster so that they return to shop again.
Warehousing services allow you to deliver faster and with minimal errors. It directly increases customer satisfaction and keeps them engaged with your brand.
Another importance of a warehouse is it helps in price stabilisation.
We all have witnessed price fluctuations in the market. Some items become in demand and then are no longer discussed afterward.
This is the most fearful thing for business owners. Most price fluctuations arise when the supply is more than the demand.
At such times, rather than selling all the items, which will bring a huge revenue loss, the business owners store these items in the warehouse until they are in demand again.
For instance, you own a business that deals with woollen. The demand for woollen is high in winter, so you must wait until the next winter when the demand rises again.
Warehouses are home to many products, where they are received, sorted, packed, and shipped. And some warehouses also provide a bit of assembling of the products.
Mostly, warehouses provide all the necessary equipment like pallets, racks, loading docks, and packing materials. You can get all the things in one place.
Assembling, packing, labelling, and grading the materials according to government laws can all be done under one roof in less time and with more efficiency.
But what to do when your business deals with perishable products? No worries, there are cold storage warehouses that are specially customised according to your business requirements.
Food and beverages, medicines, artworks, and plants all of these products require a minimum temperature to keep them alive for a longer period.
A cold storage warehouse allows the right temperature to store all the products to avoid any spillage and damage to the product. This also increases the shelf life of the perishables.
Sellers are as concerned as the customers for timely delivery, as their reputation is at stake.
Warehouses make the order processing job easier and faster by leveraging the "security stock."
Warehouse owners often store the products in advance. So, when they receive the order for a particular product, they don't have to wait for the product to come from the production line and deliver quickly.
You may have space at your production facility to store products, but what do you do when the demands are higher?
Warehouses provide an extra space to store them and keep them safe. And especially in the case of peak season when the demand is higher. Plus, warehouses are the best place to keep the excess inventory until the demand rises.
Now you know the importance of a warehouse, it’s time to rent one.
As mentioned in the blog, warehouses are no longer storage units and have more advantages than you think.
So it's time to streamline your business with the warehouse.
Prime Associates, a well-known commercial space leasing company , is here to offer warehouses that suit every business requirement.
Our well-constructed warehouses are the perfect option for your next project, where you take the benefits of our different amenities.
With strict surveillance, safety systems, and numerous other basic and advanced amenities, Prime Associates offers warehouses on rent at affordable rates in the strategic locations of Kheda , Surat, .
You can contact us to know more details; we will be glad to assist you.
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