Advantages of Multi-Location Warehouse

Warehouses have been used since the start of times, they were used to store grains, cotton and other such items; as time evolved and more products started being invented the need for warehouses started to grow.?They help in the smooth running of the business as the product damage is less when kept in a warehouse.

E-commerce in recent years has grown and the requirements for warehouses have changed. An E-commerce warehouse is a place where goods are stored for the sole purpose of selling them online. It refers to all the processes in warehousing that involve running an e-commerce warehouse. To grow an e-commerce business there has to be a dedicated warehouse for e-commerce operations. The warehouses have to be prepared for last mile deliveries and have to ensure that the payment if CoD is fulfilled. The main operations of an e-commerce business are through the warehouse and how they maintain their inventory.

E-commerce warehouses have to be prepared for all the functions that e-commerce websites give, for example, single order deliveries, fluctuations in demand, returns, packaging according to different portals, managing the inventory and handling returns.?

There are many advantages as well as challenges associated with having warehouses in many locations.?

For efficiency and trackability, e-commerce warehouses must have bins for different product categories, must have a system in place for inward and outwarding and also must be automated to reduce errors. E-commerce warehouses are present in multiple locations to fulfil orders across various sections of the country in a shorter duration.?

Warehouse management systems have to be kept in place for the ease of managing the inventory and keeping track of the stock that is there. Warehouses have become automated because of which it has become easy to know the stock in hand, the products that will be inward or the products that have to be prepared to be shipped. The automation of warehouses reduces the cost of operations and also helps in saving time.

The ageing inventory and products that are about to expire can also be visible through the inventory management system in the warehouse. Having warehouses in different locations helps move the inventory faster, reducing the ageing inventory stock. Warehouse management is important as it helps in separating the products and in consolidating and sorting the inventory.?

Having a multi-location warehouse, the cost of shipping reduces as the distance covered by different warehouses is segregated, which in turn also reduces the time that is taken to deliver the product. This adds an advantage by increasing the traction and visibility of the products.?

The drawback of having warehouses at multi locations is having to bear the cost of infrastructure at multiple locations. The warehouses have to be profitable for having them in multiple locations. The cost of operations has to be considered before setting up warehouses in different locations.

All the factors must be considered before setting up warehouses in different locations. The advantages must outweigh the challenges for the warehouse setup. Warehouses are the backbone of any business and for an e-commerce business, it is the most essential aspect.

For knowing more about warehouse management and to set up your own multi-location warehouse contact us at: [email protected]