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Warehousing and distribution businesses are growing rapidly because of several factors such as the global economy, consumer trends and preferences and supply chain management practices. As a result, the competition is becoming fiercer. To ensure a smooth and successful transition to the new demands of an expanding market, warehousing and distribution companies are taking bold steps to improve their internal processes and policies to better serve customers. Below are some of these proactive measures:

Enhance Internal Management Power. The warehousing and distribution environment is extremely competitive and the intense competition often gives no room for human errors. As a result, it is essential to develop effective internal management control mechanisms to drive the organization forward. Appropriate staff training programs are a good start to increase knowledge and enhance employee productivity. Similarly, third-party warehousing and distribution companies are offering integrated supply chain solutions to retailers and help them leverage their existing network of warehouses and facilities. By combining the advantages of multiple warehouses, multiple distribution channels and third-party warehousing providers, the ability to respond quickly and efficiently to changing retail market trends can be easily realized.

Invest in Modern Storage Technology. Modern warehouse equipment technology such as temperature and humidity sensors, automatic storage cabinets, full-line pallet flow printers, and automatic conveyor systems are enabling warehousing and distribution companies to improve the efficiency of their operations. These advanced systems are improving warehouse inventory management, reduction of warehouse waste, reduction of freight costs and increase flexibility in inventory control. These technologies also enable increased production of finished goods, accelerated delivery of finished products and cost savings for both the manufacturer and retailer.

Utilize Available Space. Most of today’s warehousing and distribution centers are located in multi-story buildings with little room to expand. To meet the growing demands, many warehousing and distribution warehouses are now being built or renovated to utilize available space. Buildings that are built to handle warehousing and distribution activities are typically multi-storey or have multiple levels.

Enhance Reliability. Since most warehousing and distribution activities are carried out on an individual basis, there is a great deal of human error. A great amount of manual work is required when packing and distributing goods. fulfillment of packaging and labeling is another way to minimize manual errors. Automatic storage and retrieval systems help reduce the burden of handling goods that have been damaged or lost. Automatic packaging machines also ensure that perishable goods are properly handled.

Reduce Operational Costs. fulfillment and distribution facilities are generally rented by the suppliers, manufacturers and retailers who make use of the facility. This facility then becomes a money-spinner for the owner who leases it. Because of these high operating costs, most of the warehouse owners and operators adopt various ways to cut down on operational costs.

Increase productivity. Goods that are well-stocked with raw materials at low rates can be stored longer. Also, finished goods that are kept in excellent conditions for long periods of time can also increase production. Also, larger warehouses can accommodate the movement of large numbers of products rather than smaller warehouses which may not have the capacity to handle such a large volume. In fact, warehousing and distribution warehouses must keep checking to see that they are not exceeding the capacity of their floors.

Reduce transportation costs. Goods that are delivered to a customer through a warehouse are effectively spread across the country in trucks that carry the shipment all the way to the customer. The transportation of goods from the warehouse to the distribution point is one of the major expenses in warehousing and distribution, and this can be cut down if the warehouse has a highly automated system to handle this function.