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Warehouse logistics involves planning, operating, and managing the flow of your goods within a warehouse to meet business objectives and goals. It is the simplest way to store your goods and stock in one location. This makes it easier to track and manage your inventory.

You can store, ship, and distribute products more efficiently if you invest in a warehouse (or if using a 3PL service, they will do this for you). If something is out of stock, no need to worry as you'll know right away and can make plans to re-stock. This makes the process seamless and easy for your business!

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The Benefits of Warehouse Logistics

Let’s look into the key benefits to warehouse logistics.

If streamlined correctly, warehouse logistics can lead to an overall increase in revenue and a better customer experience. Some other key benefits include:

Cost savings: Such an easy way to cut costs can be storing your products in a warehouse. You can save money on areas such as labour, storage, shipping and also operation costs. For example, shipping products directly from manufacturers can be expensive, so by storing goods in a warehouse near you, you can eliminate high shipping expenses.

Improved customer service: A well-organised warehouse can result in your business meeting your customers’ needs more efficiently and effectively. Why wouldn’t you want more accurate order fulfilment, shipping times, reduce the lag between orders, and be able to offer a good returns system? This will keep your customers happy and your reviews thriving.

Better inventory management: Being able to keep track of your inventory is a significant advantage of warehousing operations as it allows your business to maintain optimal stock levels (meaning less out of stock items) and meet customer/ seasonal demands. This will make your Christmas rush feel like a breeze!

Increased storage capacity: Warehouses typically have a large amount of space for companies to be able to store their inventory and even raw materials. As your business grows, storing your stock in a warehouse allows you to maintain the highest amount of stock levels to meet your high customer demands.

Enhanced health and safety: By investing in the right training for your staff, and using high-grade racking solutions, using a warehouse for your stock should be extremely safe for both staff and your stock (resulting in less damage and therefore saving costs).


The Challenges of Warehouse Logistics

Whilst there are many benefits to warehouse logistics, running a warehouse can be a very difficult process as it is very complex, and mistakes can easily be made. The main challenges include:

Adapting to seasonal demand: As busier periods hit for your company, it can be quite hard to adapt to the demand. It is important to forecast demand to be prepared for busier times with both staff and stock. Consider big events like end of season sales, Christmas, or high sale volume events you’re planning on running.

Meeting customer expectations: In order to stay competitive, it is important you are offering services such as next day delivery, which can be quite challenging to keep up with. It is also so important that the accuracy of picking your orders remains high, as well as very little damage when sending items out, this is heavily dependent on warehouse logistics, and can put a lot of pressure on warehouse workers.

Staff management: Ensuring all staff are trained, equipped and happy at work can be quite a challenge but it is key for smooth running operations.

Space: Fast-growing companies can quickly start filling up warehouses. A warehouse that seemed enormous at first quickly fill up with stock and leaves you with very little room. This is something you must consider when moving to a new site and another reason why it is key to forecast demand.


Improving Your Warehouse Logistics

There are several ways to improve your warehouse logistics and make sure your warehouse is running smoothly:

Ensure you forecast ahead: By demand planning you are preparing yourself for spikes in which you may need extra stock or extra hands. Preparing for busier times ensures you won’t fall behind on orders and keeps your customers happy.

Better inventory tracking by using digital barcodes: Digital barcodes can help improve your warehouse logistics as they track where your inventory moves through the warehouse, so items don’t get lost, and tracks show many items are shipped out per day. This can make it easier to make forecast reports too as you will have a clear set of data.

Train your staff regularly, keeping them updated on new technologies: By regularly training your staff, there should be more productivity and fewer mistakes made.

Sell across multiple channels: Integrating multiple shopping channels into your warehouse logistics can ensure more orders are coming in. Using channels such as Shopify, WooCommerce and Amazon are popular to use among warehouses. You may also use channels such as Instagram and TikTok, which have great integration options.


Have you considered 3PL?

If you’re an eCommerce business who is growing at a rapid rate, you may be better looking to third-party logistics (3PL). Focus on growth, rather than running a warehouse, and partner up with GNOC. We are the perfect fulfilment partner, who can keep your stock, as well as pack and ship it for you. All the positives of a warehouse come with 3PL, but without the stress and challenges (as we will sort all of that). Enquire today to start your 3PL journey now.


Post by Isobel Marriner
April 12, 2024