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Thread: Centralized warehouse vs small warehouses

  1. #11
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    Default Re: Centralized warehouse vs small warehouses

    I believe in decentralization as long as it's feasible. In my country, I am seeing this practice gradually gaining momentum. Time is a precious commodity as it relates to business transactions. The need to be able to be ahead of the competition in the delivery is a very important consideration when dealing with goods and services. Therefore, these small locations which may be many miles from the main warehouse could be a strategic advantage because there could be less transportation and logistics downtime.

  2. #12
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    Default Re: Centralized warehouse vs small warehouses

    I sell tires. I procure my goods from a country distributor. He has warehouses in different cities. I procure tires from the warehouse near me. Another person who has the same business will procure from the warehouse near him. This will reduce our shipping cost. If the distributor had a centralized warehouse, we would be paying more for shipping. Shipping time is another benefit, if the supply chain has warehouses in various places, shipping time will be reduced.

  3. #13
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    Default Re: Centralized warehouse vs small warehouses

    I don't think many warehouse is easy to manage. Instead its good to have 1 warehouse and maintain that only. When there is a requirement you can smartly manage and its easily understood by everyone that traffic leads to some delay.

  4. #14
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    Default Re: Centralized warehouse vs small warehouses

    Thank you for Sharing this wonderful information.

  5. #15
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    Dallas
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    Default Re: Centralized warehouse vs small warehouses

    Hi GemmaRowlands,
    Great information. I totally agree with you, its only depend on the size of the business.
    Thanks.

  6. #16
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    Default Re: Centralized warehouse vs small warehouses

    it boils down to bottomline of the business both long term and short term

  7. #17
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    Dewas
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    Default Re: Centralized warehouse vs small warehouses

    Very nice suggestion which in turn will same time money and effort. Awesome job! For more information about warehouse and othe industrial storage equipments visit http://www.giraffestorage.com .

  8. #18
    Regular Member
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    Toronto
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    Default Re: Centralized warehouse vs small warehouses

    Quote Originally Posted by jayshree View Post
    I don't think many warehouse is easy to manage. Instead its good to have 1 warehouse and maintain that only. When there is a requirement you can smartly manage and its easily understood by everyone that traffic leads to some delay.
    But wouldn't it be difficult and costlier to distribute to multiple locations far away from each other, from a single warehouse!
    I think it only makes sense if your distribution scope is smaller.

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