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To effectively identify the potential locations for new warehouses must satisfy a variety of conditions: geographical and infrastructure conditions, natural resources, labor availability, local industry, tax regulations, and public interest. Major sourc - Research Paper Example

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To effectively identify the potential locations for new warehouses must satisfy a variety of conditions: geographical and infrastructure conditions, natural resources, labor availability, local industry, tax regulations, and public interest. Major sourc

Warehousing is an important business activity and a critical commercial function. Warehouses offer several advantages to the business. Firstly, a warehouse allows the business to store goods and use them when needed. This ensures that the business can carry on smoothly in its operations and the business activity can never be suspended due to non-availability of required goods. Hence, it ensures smooth and continuous operations of a business.
Secondly, a warehouse allows the business to buy the goods in bulk and store them. The business usually takes advantages of discounts and lower prices because of buying the goods in bulk. Without a proper warehouse of adequate size, they would have to reorder the goods again and again and hence would incur higher costs. Also, there is certain reorder cost associated each time goods are ordered and shipped. This includes communication costs and transportation costs. With a warehouse, the business incurs the fixed cost once and orders the goods in a large quantity. This also results in cost savings.
In many cases, the price of certain goods increases rapidly. If the business were to buy these goods again and again, they would have to pay a higher price each time. If the business has warehousing facility, they can order the goods in bulk and avoid paying the higher prices.
Given these advantages, most businesses want to make use of warehouses. However, not every type of warehouse at every location is of use to the business. Selecting a location for a warehouse is a critical activity and there are several factors which need to be considered before selecting a location. Besides, once the warehouse location has been selected, the business needs to plan its supply chain accordingly and mould its operations to take advantage of the warehouse.
The foremost factor to consider while selecting a new warehouse location is the ...Show more

Summary

These goods could be in the form of raw materials which have been purchased in bulk and are stored till they are required for processing. These goods…
Author : riley26
To effectively identify the potential locations for new warehouses must satisfy a variety of conditions: geographical and infrastructure conditions, natural resources, labor availability, local industry, tax regulations, and public interest. Major sourc essay example
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