Significance and necessity of warehousing in modern logistics.

Significance and necessity of warehousing in modern logistics.

The significance:
1)Maintaining the usage of commodity.
In the social production and life, it often appears inconsistent with the products manufacturing and consumption, so there will always be irrelevant now, or not take or necessary for future use of the product, then in order in the production and consumption guaranteed time lag usefulness product, it is necessary to storage means, which is the most basic sense warehouse.

2)Regulate the flowing of products.
With the further development of the economy, meaning of storage is changing. We know that the market demand gradually personalized, diversified production gradually to more variety, low-volume flexible production methods change, so too must adapt to modern logistics many varieties, small batch features, but more variety, small batch would mean the rising logistics costs, such as transport, too much small quantities, less than truckload inevitably lead to costly , so here it is necessary to coordinate the flow of product through the product process scattered plot role of warehousing, etc. We will be specifically behind talked about how to coordinate warehousing and distribution, to reduce costs.

3)Resolve the time contradiction between supply and demand.

The necessity:

1)Reduce transportation and production costs.
Although the establishment of product storage will increase costs, but it also can improve the efficiency of transport and production, the relative reduction of both cost and uncertain demand in the market, the case is difficult to predict, reserve a certain amount of product can effectively Out of preventing the generation of the cost, and also to ensure that the rhythm of the production run for a certain extent, so that the production plan can be implemented well, reducing the production costs, while the small -volume storage can be dispersed product transportation task set, integration conducive to the formation of the entire burden of transport and overall optimization of transport routes, thereby reducing transportation costs. Thus, although the formation of a new build warehousing costs, but it will also reduce operating costs in other areas, as long as the final cost reduction, it is necessary to establish warehousing

2)Regulate supply and demand.
Before talking about the significance of modern logistics warehouse to when it has been talked about, for example, the production of certain products due to raw materials and other aspects and seasonal features, but demand is continuous, so here it helps warehouse in regulating supply and demand contradiction that exists between . In the example, when the raw materials needed for the production of a product at a lower price within a certain time, the product manufacturer can purchase a certain amount of raw materials for the pre- stored for future production.

3)Needed by the production.
Storage exists not only in the products flowing but also in the product process, such as production logistics, we often mentioned temporary work in progress, raw material storage, etc., warehousing is also the non- production logistics the missing link.

4)Needed by the sales.
In order to win long-term loyalty of consumers, Modern enterprises usually take a quick customer response strategy, and the implementation of this strategy requires the help of the role of warehousing. Because the product close to the customer's place for storage can effectively prevent the occurrence of stock, shortening the delivery time of goods, which will effectively improve the quality of customer service.