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Determining the right facility for your supply chain needs can help you in growing your business and also enables you to ensure timely deliveries of goods. Providing the right supply at the right time by being cost effective is the basis on which you should determine your supply chain. Recently after the COVID 19 pandemic, there has been a huge gap in the whole supply chain industry. Therefore, it is critical to select the right facility for your supply chain needs as it can be the turning point of your business. Moreover, in order to grow your business and overcome the competition that is present in the market, it is important to select the right space to carry out your supply chain operations.
According to research, technologies are also becoming a part of the supply chain industry. Around 30-40% of the companies use IoT, cloud computing and info security solutions to scale their supply chain. Apart from that, robotics, data analysis, and block chain are also being used by more than 20% of the companies. 50% of the companies believe that technological advancements would have a strong impact on the logistics operations. Experts also predict that by the end of 2022, the global supply chain industry would be around 8.5 Billion USD.
Before selecting the supply chain it is important to understand that there are three factors that you need to consider while designing your supply chain. Your supply chain should focus on the accuracy of orders, timely delivery of products, and should be cost efficient. It is important to keep these three factors in mind while determining the right facility for your supply chain. Moreover, there are three types of supply chain categories that are as follows:
These are the three categories of supply chain that you should select from on the basis of your product. However, it is advisable to understand your product as well as what your customer demands, in order to be able to pick the right facility for your supply chain needs. Apart from that, it is important to select the right place to store your inventory and conduct your operations to be able to fulfil the customer demands on time.
Selecting the right place for a warehouse can be a challenging task. During 2020, the warehousing market was valued at a total of INR 1050 Bn. According to experts the warehousing industry is set to reach a new high of INR 2243.70 Bn. by 2026, at an exponential compound annual growth rate of 10.90%. However, there are a few things that you should keep in mind before selecting the right warehouse area. Before selecting the right warehouse make sure that it provides security to the goods that are to be stored within the warehouse. Also, the warehouse should be easily accessible to drop in or pick up goods from the warehouse. This in turn will help in the overall production of that particular product. Some of the points to find the right space are as follows:
The size of the warehouse should be sufficient to upscale or downscale your inventory requirements. Moreover, selecting that warehouse with the right layout is critical as it helps in the streamline movement of goods which improves the overall work efficiency. The warehouse workers should be able to locate everything freely. In case of a small warehouse or a warehouse with improper layout, everything might get clubbed which will lead to the wastage of products as well as human efforts.
Also Read: Why Private Warehouse in India is the Best Option?
The warehouse’s location plays an important role in determining your supply chain’s efficiency. The location of the warehouse should be near the distribution centres as well as near the production area to minimise the cost of transporting the goods from one place to another. Also, it is important that the location of the warehouse should be near ports, railways or highways, depending on the fact that if the product is being delivered by ship, railways or road transport.
Businesses that tend to have found a way to offer low cost shipping are believed to be doing better than those who haven’t. Therefore, in order to maintain low shipping charges it is advisable to maintain your warehousing expenses low. Before selecting the right warehouse, you should consider the cost of the property on the basis of its size. Also the cost of the staff and other resources of the warehouse cost of distribution from the warehouse along with the cost to ship orders to other locations.
Finding suitable technologies can not only be cost efficient but also can improve the whole supply chain. Using the latest technology, you can streamline the distribution process by reducing the human efforts at the same time. Keeping a track of inventory or automating the warehouse can result in improving the overall efficiency. However, it is important to keep in mind that the warehouse should be able to allocate heavy machinery and other related equipment if you are willing to apply automation to your warehouse.
Applying the latest technology does not mean that there will be no workforce required in the whole supply chain. Hiring skilled workers can make your supply chain much more efficient as they can make sure that the operations are being carried out smoothly. Moreover, in case of fragile or perishable goods, you need to hire workers that are skilled and are extra careful with the goods in order to avoid the wastage of the products.
These are some of the points that you should consider while determining your warehouse location. However, there are numerous companies in the market that can help in determining the right supply chain needs for your business. AWL for an instance, is one of the leading supply chain solutions providers in India. Moreover, it is important to choose the best possible facilities for your supply chain in order to be able to be competitive in today’s global economy. Above are some of the tips if you wish to design or redesign the supply chain strategy for your business. Apart from the above points, it is also important to provide satisfaction to your customers in order to grow your business. Keeping a track of your inventory can also help you in delivering the products on time.
Also Read: Building a Transparent Supply Chain
