Warehouse Consolidation
Transport operations are often divided into full load and part load and due to economies of scale, the unit costs are higher for part loads. Our customer needs several part loads delivering, so it can reduce costs by consolidating these into full loads. Then it gets all the part loads delivered to a warehouse near the suppliers, consolidates them into full loads, and pays the lower costs of full-load transport to its operations.
Part Loads to Full Loads
Transport operations are often divided into full load and part load and due to economies of scale, the unit costs are higher for part loads. Our customer needs several part loads delivering, so it can reduce costs by consolidating these into full loads. Then it gets all the part loads delivered to a warehouse near the suppliers, consolidates them into full loads, and pays the lower costs of full-load transport to its operations. The extra cost of consolidation in a warehouse is more than recovered from the reduced cost of transport.
Different Sources
A different form of consolidation occurs when a manufacturer makes, or buys, parts of a final product in different locations. Then it can arrange for all components to be sent to a warehouse which combines the parts into the final product, and arranges delivery to customers. This kind of consolidation can go further than simply bringing together materials from different sources.
Warehouse Break-Bulk
Warehouses also do the opposite of consolidation when they break-bulk. In case of break-bulk, the supplier sends all the demand for a particular area in a single delivery to a local warehouse. The warehouse breaks this delivery into the separate orders and passes them on to each customer.
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Overview of Third-Party Logistics
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Business Case of Multiple Warehouses
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Types of Inventory Count Processes
While dealing with lots of inventory in a warehouse, lots of things can go wrong. Shipments may not have the right number of units in them, or they could get damaged somewhere along the supply chain. Discrepancies in the stock may arise as part of every inventory control, and need to be corrected immediately after the inventory control procedure has been finished.
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Miscellaneous Warehouse Processes
At the end of each inventory control, the Contractor provides the Ordering Person with an inventory report which contains a list of all stock adjustments. The Ordering Person uses the report to create, by use of his/her own means, necessary value and accounting adjustments related to the stock. Let us look at some to the mislaneous warehouse processes not covered earlier.
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What is the difference between Warehouse Management & Inventory Management?
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Overview of Warehouse Processes
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