01-02-2013, 12:28 PM
Warehousing- A Role Beyond Storage
1Warehousing.ppt (Size: 1.02 MB / Downloads: 37)
Service Benefits: Spot Stock
Under this concept, a selected amount of firm’s product line is placed or ‘spot stocked’ in a warehouse to fill customer orders during a critical marketing period.
Suppliers of agricultural products to farmers often use spot stocking to position their products closer to a service-sensitive market during the growing season.
Following the sales season, the remaining inventory is withdrawn to a central warehouse.
Service Benefits: Assortment
Assortment warehouse which may be utilized by a manufacturer, wholesaler, or retailer- stock product combinations in anticipation of customer orders.
The assortments may represent multiple products from different manufacturers or special assortments as specified by customers.
In first case, for example, an athletic wholesaler would stock products from a number of clothing suppliers so that customers can be offered assortment.
In the second case, the wholesaler would create a specific team uniform including shirts, pants and shoes.
Service Benefits: Mixing Warehouse
A Warehouse sometimes is used as a product mixing point for a company having a number of plants manufacturing different ingredients, which are mixed at a convenient place to make final products.
Service Benefits: Production Support
Production support warehousing provides a steady supply of components and materials to assembly plants.
Safety stocks on items purchased from outside vendors may be justified because of long lead times or significant variations in usage.
Service Benefits: Market Presence
The market presence factor is based on the perception or belief that local warehouses can be more responsive to customer needs and offer quicker delivery than more distant warehouses.
As a result, it is also thought that a local warehouse will enhance market share and potentially increase profitability.