Thursday, May 7, 2020

7 Advantages of Having a Central Distribution Centre

Suppose that you are operating more than one repository at separate locations. Now, imagine the issues you may have in getting a product from one of these different distribution centres. Theoretically, having more than one depository for your product storage is not an issue, but manage all of them for product delivery and allied works in your logistics can be a nightmare experience for you.  


Creating a centralized distribution centre is the best solution for you to escapes from those nightmares. Here are some significant benefits of having a central repository:

1. Better Accessibility 

With a central depository in logistics, your access to this facility gets enhanced, as you don’t need to go to different locations. Having a track on the exact product location and how to access the stored goods becomes more comfortable for you. Besides, it helps you manage a crisis in the best way if it occurs. 

2. Effective Control 

A centralized repository enables you to have better control over the complete management of your product storage. With this, you find transporting goods to client’s end easier, and you need less time investment to carry out product shipment. 

3. Efficient Inventory Management 

With centralized stockpile, your inventory management works get reduced, you source the required materials as per your exact needs and have a precise idea on product availability all the times. You just need to manage the fixtures, spares, and equipment/tools used in the storage and retrieval of materials or goods. 

4. Cost Saving

You will have financial benefits in the long run by having a centralized warehousing distribution. Your operating expenses come down, as you have a lower requirement of human resources, equipment, repair works, and allied others. With this, you can allow higher margins for your customers. 

5. Easy Reporting 

You have several reports from different locations if you operate more than one repository. With a central storehouse, you will have a single report on your product availability and allied warehousing works. And so, making further plans gets easier for you.  

6. Enhanced Relationship With Clients

By limiting the number of distributors or warehouses, you can have a better focus with a few facilities. With this, you can easily upgrade your storage and its management by using advanced technologies and tools. Your upgraded facility will help you serve your patrons in a better way. Consequently, your relationship with customers goes up, and your clients will be satisfied with your products and services. 

7. Flexibility 

In the case of an emergency or crisis, renovation or standardization of your warehouse and distribution is comfortable for you. You can quickly revise all the activities inside your central repository. You have a feel of more flexibility in comparison with the management of more than one storehouse.    

Conclusion 

Having a centralized distribution center is highly beneficial for you. It allows you to have better control, cost saving, enhanced inventory management, fast goods transportation, flexibility, and quick renovation in a crisis.

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