Question

Q1. The intense competition between companies is sometimes seen as competition between their respective supply chains. The more efficient supply chain provides a competitive edge for the company that it serves. In such a context and in line with the impetus for warehouse development, present your analysis for the role of warehouses along a competitive supply chain. (30marks)

(Impetus for warehouse development: Offshore outsourcing, (VMI)Vendors Managed Inventory, Hypermarkets-Combining retail and warehousing, Direct sales, Strategic stockpiling )

please don't copy from other answers, please give some examples

Answer 1

Role of warehouses is to store the inventory and in distribution of goods to the important destination such as distribution center or store. The more organised warehouse operations are, greater are the costs and resources saved in the supply chain increasing efficiency. Warehouse management is also responsible for maintaining the stocks so that no inventory is lost. The suppliers and partners send their stock to warehouse for proper storage in good conditions. The warehouses needs to keep such stocks arranged as Inventory is valuable. The time required for supplying the stocks stored in warehouse is also essential for maintaining efficiency and effectiveness of the supply chain. The focus on supply chain has increased to serve customers better and faster to create value and satisfaction. The functions of the warehouse like effective management of space, working as temporary manufacturing and assembly unit to overcome shortages or repairs can increase the chances of availability for goods and suffice the customer orders. Technology has an important role in warehouse management as it can help in movement of goods by keeping records as well as location of goods through use of RFID tags. Timely procurement or dilution of stocks is also necessary to avoid any losses and that can be done with competitive warehouse management services. Warehouses if maintained well can also act as stores for direct selling to customers or wholesalers thus saving the costs of extra inventory storage. Various software have been used for warehouse management. Accuracy and correct information storage is a continuous process that needs to be done through audits and checking in warehouse from time to time. This helps to manage the stock and speed of the services across the supply chain. Warehouse management needs to be integrated with other functions of the supply chain to exactly assess the placement of stock, its value and estimation of delivery times to the given destinations. The more efficient and trained staff will deliver better and competitive services in the modern supply chain activities. Some examples of efficient warehouse is of Macy's. The organisation is using its warehouse with Google cloud computing services to distribute directly to specific formats of stores and functioning as factory outlets.