Product Warehousing

Written by Linda Alexander
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Product warehousing has grown from a storage solution to a whole host of services that manufacturers used to do themselves. Warehouses no longer merely store inventory. Today, they are involved in packaging, assembly, order consolidation, and reverse logistics.

In a quest to lower costs and become more flexible, manufacturers are looking for new ways to streamline business. Product warehousing is one answer. It no longer makes economic sense to perform these tasks during the manufacturing process. Warehousing provides flexible solutions and value-added services that lower costs and allow companies to mass customize their products.

Inventory and Product Warehousing

It is so difficult to predict order volume, and product warehousing allows companies to balance their inventories better. They can make last minute changes to orders, and quickly answer demand for products. When customers place orders, having the warehouse send them out makes the order cycle much faster than it used to be.

As warehousing becomes more complex and warehouses perform more value added services, logistics become more difficult. Therefore, planning is more important than ever. In order for this process to work, the supply chain system must be well-planned in advance so the warehouse is ready to handle any type of order that comes in.


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