Skip to main content

WAREHOUSE CONCEPT WRONG ????


Warehouse why its reqd ?

  1. Bulk Breaking
  2. Uncertain high in sales forecast
  3. Stock reqd in case of emergency

But Why

Only reqd is proper planning.

Lets take a example

Small amount of materials reqd
Answer :- PTL service is there

Need to distribute to large no of retailers
Answer :- B to B service provider is there

Seasonal Product
Answer :- Make good Super stockiest who can lift the materials

Uncertain Sales
Answer :- Look after the competitor , or wrong planning, if monopoly customer need to wait.

Bulk Breaking
 Answer :- Transporter warehouse ids there.

Need to store for few days
Answer :- Give detention, materials at vehicle only


I am not against warehousing concept, nurture all alternative before indulging one

Warehouse can lead to

  1. FIFO mismatch
  2. Extra rental cost
  3. Extra manpower cost
  4. Theft / pilferage
  5. Handling inefficiency leading to product damage
  6. Extra insurance coverage
  7. Electricity, local issue, license etc

Think once warehousing might not be a solution, its might be a headache.



Senior Supply Chain Manager

Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division )

More than 10 + years’ experience in FMCG Supply Chain
MBA Marketing & Finance from Future Business School
Post Graduate Diploma in Logistic & Supply Chain from St Xavier’s
Post Graduate Diploma in Export & Import Management from ICFAI University 

KEY WORDS

Logistics, Supply Chain, Trucks, Container, Warehouse Space

Comments

  1. Your blog is really good. This information is really useful for those who have searched for this and you have great knowledge about this. I’m really impressed with your post.Rent Storage Space For Business

    ReplyDelete

Post a Comment

Popular posts from this blog

FREIGHT COST CALCULATION

  The important question is to how to calculate freight cost ?  The distance from x to y certain transporter want x amount . For Ex take certain parameters before negotiation PER TRIP FREIGHT Kolkata to Guwahati  present mkt rate Rs 60 k Distance 1010 km Approx.3.5 mileage so Diesel 78 / per liter Diesel costing approx. :- = 1010/3.5 = 288 ;  288 *78 = 22.5 k Standard time :- 5 days  So   Driver Salary 20 k , per trip approx. 5 k Maintenance monthly 10 k, per trip approx. 2.5 k EMI :- 20 k monthly, so per trip 5 k So costing coming around 35 k Misc 5 k Approx. 40 k will be grand total On per trip transporter is charging 20 k profit . If the homework is done , you are in a position with the parameters to negotiate and deal with a transporter . Its very much important to negotiate on the right path.  Also keep in mind payment terms , return load and market demand and supply for the same. For ex if there is no return load transporter will charge retu...

DIRECT TO CUSTOMER

 In the ERA of Covid 19 pandemic, business down, people at home so all we need to think about some different structure altogether. I am working in Cake and Bakery unit, people will consume, but how the product will get cater to customer point directly. The solution we have arrived is to tie up with various courier service, For Ex :- Letter gets delivered then why not materials. If we get registered our product into any modern trade format 25% - 30% margin need to be assured from MRP + freight + Distribution cost. Altogether calculate and spend the money for courier service. Its the fact very low val sku might not get delivered but make a bundle pack, special packaging with a bubble pack and the materials ready to travel. People will go to the website and place the order, prepaid and just need to inform a courier . Materials will get picked from warehouse end get delivered. Benefit we can reach customer to every point of the nation, and digital marketing reqd to promote the same onl...

How to Find a Transporter

 How to find a Transporter ? To find a proper transporter is difficult  To evaluate the same To get competitive rate . So what's the solution. The solution is bidding or auction . Auction is a process where a IT provider will provide a platform, ask the IT provider to get transporters. A experience provider already had a pool for the same work done previously, just ask for the service. Ask the provider to arrange a auction and bring vendor. With 1 hr auction a comparative rate with vendor details will be received. Think differently. Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) Faculty member for Management Subject under Techno India University . More than 10 + years’ experience in FMCG Supply Chain CII Certified Supply Chain Management Professional MBA Marketing & Finance from Future Business School Post Graduate Diploma in Logistic & Supply Chain from St Xavier’s Post Graduate Diploma in Export ...