Storage is an important link in the supply chain. Storage connect suppliers with customers and play a key role in ensuring the smooth flow of goods and materials through the supply chain. Warehouses play several well-defined roles in the supply chain.
1, safe and reliable storage
One of the most important roles warehouses play in the supply chain is to provide safe and reliable storage for goods and materials. This is essential to protect your inventory from damage, theft or loss.
Of course, storage space is critical to inventory needs. This storage space allows businesses to maintain sufficient inventory levels to meet customer demand.
Without a warehouse, businesses will need to store inventory at their production facilities or customer locations. This is impractical and could lead to increased costs and reduced efficiency.
2. Strategic location
The proximity of warehouses to supply routes is also important in supply chain management. Businesses can minimize shipping costs and transit times by strategically placing warehouses near major markets or transportation hubs.
This means incoming and outgoing goods can arrive and leave the warehouse quickly and efficiently. Location can be a make-or-break factor in choosing a warehousing partner, and most importantly, it makes a significant difference.
