Have you ever nursed the thought of having all of your grocery products in many separate locations? Now think about trying to get a product from each of these distribution centers to a particular location. This theory of operating multiple grocery distribution centers might work as it doesn’t sound so bad.
But, the logistics of running multiple distribution centers can become a nightmare for the distributor.
One of the most effective ways to reduce the logistic nightmares of operating multiple distribution centers is to have a central distribution center. From that single distribution center, you can see all of your products and still be able to transport them to the location of the client in a timely manner. A centrally located grocery distribution center allows you to concentrate more on the important aspects of the business.
Presented here are some of the advantages of housing your grocery products in a central distribution center instead of multiple warehouses.
Having all your products in one central location is a big advantage in the sense that you will have easy access to anyone of them whenever you need them. You know, at all times, where your products are and how to access them instead of trying to keep track of where your products are. That also makes it easier for you to handle any crises that might crop up. The reason for this assertion is if you notice something is missing for instance, you can check it immediately.
Although inbound transportation costs might increase a little, the fact that all of your products are in one central place will make transporting them much more efficient. Sometimes, your products will have to travel a little further than they would have if you had many distribution centers.
Also, keeping your products in multiple distribution centers could bring about delays in the transportation of some products over others, potentially leading to customer dissatisfaction. Multiple distribution centers also mean there are multiple delivery routes, which can make the logistics of distribution even more congested and time-consuming.
Based on the type of business you are dealing with or the kind of products you offer customers, you need to keep a close eye on what you have in stock. With a central distribution center, creating these types of reports and monitoring becomes incredibly easy. You only have to focus on one source instead of tracking down multiple reports from multiple distribution centers.
You will save money in the long run since you won’t operate multiple distribution centers because more centers mean more money for their upkeep. You will also be able to reduce employee costs as it does not take as much energy to successfully operate a single facility when compared to multiple centers.
Think of the Warehouse as the Heart of the Operation
The warehouse inside the grocery distribution center serves as the central space for inventory in different ways. Goods are taken to the warehouse and organized in an orderly manner. These products are stored in their various allocated spaces until the orders come in. Most importantly, warehouses serve as the hub from where products are distributed to customers.
In modern-day distribution centers, warehouse personnel is logistics experts who have been equipped with the latest technology to receive inbound shipments, identify them, sort them out, and organize them in a way that allows for quick and easy retrieval.
Inventory of goods is properly stored to meet the needs of the client as it relates to safety, security and inventory turnover times. The process of storing products in a warehouse may seem to be uncoordinated but an efficient warehouse is a priceless one. On the other way round, a warehouse that has no safety, enough space and the proper conditions such as temperature, humidity level etc., will eventually disappoint customers and increase expenses in the supply chain.
What to do to Ensure Supply Chain Efficiency
The work rendered by experts within a well-equipped grocery distribution center empowers a company to ensure the right products are readily available as at when needed. The warehouse serves as a happening ground for all orders whether orders require bulk, break-bulk, pick and pack, kitting, special storage or handling, assembly or shipment consolidation.
Grocery distribution centers have the capacity to simplify inventory and logistics processes by using “central hubs” that make orders strong in a highly efficient manner. Consolidation fastens order delivery and also serves to free up storage space in the warehouse and expedites order delivery of products.
From the customer’s thought, consolidation empowers the business to sell its products at cheaper rates. It also creates room for order delivery as fast as possible. In the end, customers who received their goods in a timely manner and at a cheaper rate would be pleased to make repeated orders and remain loyal to the business.
If not for the significant benefits provided by grocery distribution centers, logistics systems such as order processing, inventory management, and freight transportation would all fail to achieve their primary goals of cutting down on cycle times, reducing costs and increasing customer satisfaction.