Part 4 --- Warehousing and where to put your attention too

A short summary of parts 1-3. We are talking about the process of logistics starting from home in the example of planning, buying and transporting of milk for our house, followed by storage of the product in the kitchen.

 Part 4 --- Warehousing and where to put your attention too.

Arriving at home, we take the milk boxes to the kitchen, and we want to store it where we get used to putting it.

However, oh, what a surprise, there are more than three boxes...! After a good look, we realize that one box of milk seems to be thicker than the others. I take it out and I check it, the box has passed the expiration date and, additionally, it became sour...

How do I know? Sour milk produces gases with its bacteria and inflates the box… Therefore, I do not even open it up!

 Why did all this happen?

In storage and almost everything, there are two ways to store and remove products, which are normally described with the terms LIFO and FIFO.

LIFO means in its English terms:                                Last in - First out

So we usually store this way at home, since we know that the products have quite high turnover.

Also in many grocery or small stores stored like this and, yes, in restaurants many times...

Just have a look at Gordon Ramsey Restaurant Rescue Shows.

 FIFO, on the other hand, means in its English terms:        First in - First out

This is generally stored in department stores or in a supermarket, where you can observe the staff removes things from behind the shelf and puts them first.

Moreover, the customer, who does know, takes his yogurt from the last row, instead of the first, because he knows that the freshest products are stored behind.

 In the same way, we should also store our products at home, especially in the refrigerated one. How many times it happened to us that we found a yogurt last month in the darkest corner of the refrigerator. Or the last tomato, very soft and watery, in the vegetable drawer. So review the refrigerated minimum once a week.

And believe me, I am not a big fan of order ... and here is the big but: the things we throw away, costs money and what we throw away is literally money. Imagine if this happens in a store or department store ... a lot of money is lost, and to regain it, they finally raise prices, although only a few cents, which we may not even realize. However, many cents finally makes many bills

This also happens many times in warehouses for spare parts and for this reason the inventory is very important, and not only for the value that are stored there, but also what old spare parts are found.

What many people are unclear with, especially in small stores ... to storage products is a cost; it is money, which are stuck on your shelves ... literally.

Yes, they are goods, but what if you turn it into an acquisition force again - that is, to make purchases for new products - correct, you can offer more products to your customers.

 Accountants, the detailed ones, do say that a product originates cost from its first day in the storage. Technically, it is correct, but for us ordinary mortals, products really causes costs after 15-30 days, it depends on the invoicing of your provider, when he asks you to pay.

So, give it a few thoughts about I have told you and I hope it makes sense, at least a tiny bit.

Until next time…