Question

Private warehouse and its impact on supply chain operations

Answer 1

Private warehouse

Private warehouse, also known as proprietary warehousing, these facilities are owned and operated by a company division and often require a significant front-end investment for building, has provision of  management, and regular maintenance.

They are perfect for companies who want to decide for themselves how to best utilize the available storage space. It can be of two types: On-site and off-site warehousing.

Private warehousing impact on Supply chain Operations

First we understand what is supply chain?

Supply chain is the kind of network in which between a company and its suppliers to produce and distribute a specific product to the final buyer. It includes different activities, people, entities, information, and resources.

Impact:

importantly impacts on various things,they are:

1. layout

2. operations

3. efficiency

4. Information system

5. Maximize use of space

6. effective use of labour and eqipment

Objectives:

• provide timely customer service
• keep track of items so they can be found readily & correctly.
• minimize the total physical effort & thus the cost of moving goods into & out of storage.
• provide communication links with customer.

Benefits:

It improves operating efficiency and inventory control is felt easier and effective.

There is no need to carry large stock and there are no danger of stock outs resulting in low level inventories.

Transport facilities are optimally used as routing and scheduling becomes handy.

The firm is better placed to meet the meet the demand fluctuations from different market segment at relatively short notice.

Drawbacks:

It results in loss of customer service due to spatial considerations and delays are caused.

It results in heavy transport costs.