It’s never a good idea to simply store products that are not going to move for a long period of time. It makes much better business sense to move items quickly. Still standing products cost money and take up space. Often the longer the products remain the less value they have and in the end it’s possible that they will become worthless. Warehouses can be used to speed up the time it takes to move items out of storage and increase profit margins, but how?
Freight forwarding solutions are there to help you add value
Transforming Products in the Warehouse
You can add value by using the warehouse to upscale your goods. You receive the products and then your employees make alterations that allow you to charge more to the end customers. There are lots of ways you can add this value, for example you can:
- Personalise the products with names and customisable text as indicated on the order
- Transferring products into branded packaging
- Building the products and sending them packaged when they are ready assembled by your employees
- Branded labels that make the products more valuable
You will need to have a good amount of control on your inventory system and train your employees to ensure the work is completed to a high standard. This is a great way to increase your profit margins and provide a more complete customer experience. It adds more value to your products and makes good use of the warehouse space, helping it to pay off.
The goods are all stored in the warehouse and each one is picked together and then processed down the assembly line. They are only packaged once the order is picked.
Overflow Problems
A warehouse is also an excellent way for you to deal with problems such as overflow. You can store large quantities of goods, seasonal goods for example, over long periods of time. It helps to create a buffer between supply and demand. However, you can only use this solution for products that are always required at certain times of the year. It’s not suitable for trendy goods that will go out of fashion within a few months of being ordered.
Distribution Hubs
Hub and spoke is a distributing concept that is used in order to reduce the cost of freight forwarding. By shipping large amounts of products at a time the goods can be quickly distributed at once, saving money and ensuring the goods are all sent to market or the customers in the most cost efficient method. A hub is where trucks that are filled with goods can be filtered down and turned into smaller loads onto smaller vans, they can be streamed down daily unto the shipment has gone.
Hubs are an excellent solution for products that move quickly and it works as a good storage solution for those goods that take longer to shift. Freight forwarding can be extremely cost effective when you find a reliable service that fits in well with your requirements. Contact a logistics provider who is able to manage your warehousing and freight forwarding needs.