7 benefits of warehousing

For manufacturers, there has never been more intense pressure to enhance productivity and lower costs. Finding the best way to manage your procurement, storage, distribution and logistics will improve production workflow and increase productivity.

These seven benefits of warehousing explain how getting your warehouse storage and inventory management under control can quickly boost your bottom line.

1.     Production support

Timely, consistent production support can dramatically reduce your production lead times. At ShapeCUT, our managed warehouse facility has the warehousing space and transport logistics expertise to safely store your precision-cut steel components until you need them. And when you do, those vital components are delivered where and when you need them, the same day, or the next day.

2.     Opportunity to expand

If you’re not restricted by the need to store all materials, components and finished products at your manufacturing facility, you’re able to focus on your core business: producing your products. By outsourcing storage and distribution to a warehouse or distribution centre, your business is better able to use existing space for product development and process improvement.

3.     Packing and processing

Today’s warehouses and distribution centres do a lot more than simply store your products. A good warehouse will provide picking, packing and shipping services as well as inventory management. At ShapeCUT, our inventory and logistics management processes are what allows us to manage Queensland’s largest in-house range of steel, aluminium and stainless steel stock.

4.     Price stabilisation

Warehousing ensures a regular supply of goods into the marketplace by being able to store goods when supply exceeds demand and then releasing them when demand exceeds just-in-time production. Maintaining consistent stock levels helps prices to stay stable, making it easier for businesses to forecast production, profit and loss.

5.     Financing

Using a warehouse can help with your financing arrangements because the business owner can borrow money against the security of the materials or goods in the warehouse. Then there’s the additional benefits offered by bonded warehouses – facilities that are licensed by the government to accept imported goods for storage until customs duty can be paid. Storing imported goods or materials to be exported in a bonded warehouse helps control costs by paying customs duty proportionally.

6.     Spot Stocking

This benefit is particularly useful for manufacturers that produce seasonal products. Spot Stocking is also a warehousing technique favoured by the agricultural sector. Instead of using a warehouse facility year-round or shipping direct from the manufacturer, Spot Stocking uses a number of warehouses simultaneously in a range of locations, close to key markets to reduce transport time and immediately meet customer demands.

7.     Minimise business risk

Goods kept in a warehouse are insured at the risk of the warehouse owner. Storing goods at an off-site warehouse minimises inventory loss from theft, fire, damage, etc and transfers this risk to the warehouse. It’s their insurance claim and the warehouse insurance company who will be paying any compensation.

Save on warehousing costs by using ours

If your business requires steel cutting services or steel plate of any grade, size or thickness, we can keep your stock in our on-site managed warehouse facility on the outskirts of Brisbane.

Our warehouse team not only manufactures precision cut steel, we are experts at keeping tabs on exactly what we have in-house.

Posted first on: www.shapecut.com.au

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