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Warehousing, an essential tool in creating value for customers.
Jan 25, 2023

Food and beverages consumption and demand is increasing every day. In today’s times, when both husband and wife are working, the eating habits have changed and people depend more on frozen food.

Warehousing plays a pivotal role in managing and storage of food and beverages, and agriculture and food security market. As any business grows and expands, they look for more reliable and effectively organised supply chain management and warehousing services. Some people might see it as an unnecessary expense, but it saves a lot of money and boosts productivity. Depending on the type of product - dry or frozen, a warehouse has different method and technique of storing it.

Most companies produce goods in bulk which need to be stored and prevent them from any damages. Storing your products in warehouses reduces the risk of spoilage and contamination. Warehousing is a great way to store goods that are not needed immediately. With quality and quantity, it also looks after availability of products for the customers.

Businesses, therefore, consider warehousing as an essential tool in creating value for customers. Here are some key reasons to know why warehousing is crucial for your businesses.

Easy Distribution

It becomes difficult for factories to manufacture as well as store the product. When factories being far away from city and the place of consumption, the product may not get delivered on time or may be spoiled. Therefore, storing product in cold storages of warehouse near the cities helps to reduce the delivery time. Nowadays warehouses provide the service of supply too which reduces cost. Whether it is a raw material or a finished product, it comes convenient for manufacturer to deliver it to the customer fresh.

Inventory and cost reduction

A well-managed warehouse can provide you with a centralised tracking system for your inventory. Having an efficient warehouse system helps you in managing and fulfilling orders while reducing the order cycle time. It is therefore designed in a way that can handle all your warehouse activities with utmost precision and full-proof security. Having a just-in-time inventory increases efficiency. The cost of inventory is reduced by storing only the quantity desired to keep the inventory full. This way companies can reduce costs as well as manage the delivery of goods without hassle. With sustainable inventory management and advanced storage planning, you can store food and agricultural crops and distribute items more efficiently.

Solving seasonal crises

During the harvest season a lot of agricultural products are cultivated. With demand, it gets supplied but during off season the demand is high but product is not available, because of storing products in warehouse will keep the product available for a season and the problem gets solved. It makes the seasonal product available for entire year.

Safety standard

Food products require special handling. Warehouses follow safety standards and maintain hygiene for the products. Warehouse provides facility at each step from how the product is stored till it reaches its destination.

Protected packaging is used for a smooth and safe journey on the road. Generally, companies do not have in-house storage facilities. They outsource services for advanced packaging and carrying out timely deliveries.

Cold storage

India is the first in fruit and second in vegetable production in the world. Having a cold goods store is the best method for preventing food damage. The storage and distribution of these fruits and vegetables is carried out in a manner where the temperature is monitored to keep them fresh and edible for a longer period of time.

Better customer experience

Warehousing is an important part of your customer buying experience. It ensures that the products ordered are in stock, fresh and the customers get what they have ordered. Your inventory is well managed with warehousing. With increase in online sale, customer expects fast delivery. If a customer demands goods, then warehousing ensures that the product is available for quick delivery, and also prevent product from getting lost and stolen during handling. Therefore, it can increase productivity and leave a great customer experience.

Security is priority

You look for security first, wherever you go. It’s the same for running a business. Warehousing protects your goods. It offers services that will store your goods at the right temperature preventing it from any spoilage. They are supervised by specialists and firefighting personnel. Products stored in warehouses are also typically insured. It ensures higher chances to receive compensation from the insurance company in case of damage, fire or theft.

Advancement in technology

With the help of latest warehousing technology, product can be stored in by various ways and makes it easy to identify and know their expiry date. When kept in warehouse, the shelf life of the product also increases. It provides you with the information of your product’s expiry date, which helps you to strategise your business plan before you face any loss.

Vision 2030

India’s population is expected to rise to 1.515 billion in 2030. With the rise of population, the demand for fruits and vegetables will also rise. And as India is one of the leading countries in production of fruits and vegetables, for the supply to work and fulfil the demands smoothly, logistics and warehousing needs to be upgraded. Warehousing will nearly become a billion-dollar industry in the future. The demand is not only in metro cities but also in tier-II and tier-III cities. India will see enhanced growth in the coming years for warehousing services.

Conclusion

Warehousing is the most important component of supply chain management. With effective inventory and risk management and advanced technology, increase your business productivity in time. Food warehouses which are managing fresh food are now becoming vibrant, efficient centre for manufacturers. Fruits, vegetables and other agricultural products often have a short shelf life which is why they need to be transported with speed. Hence, it is one of the few industries that rely heavily on warehousing services.

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