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Warehouse Distribution Centre

Before going into the details of the topic of warehousing and distribution centre it is imperative that we explain that warehouse distribution centre is. This term is actually a combination of two distinctive words that are used together. Warehouses are storage points or centres, having four walls and physical presentation where products are stored for a longer period of time. The time frame for the products stores in warehouses is six months to one year. Contrarily, distribution centres are short term storage centres, built with intent to regularly supply products and items to the local store and retail shops. However, these two terms collectively represent a storage centre for storing products and items for a certain period of time.

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Like several other advanced countries, warehouse distribution centres are being widely used for storing items imported from foreign countries as well as those produced locally in New Zealand as well. Later on, local retail shops and store owners carry these items to their stores for the use of general public.

Warehouse distribution centres have certain advantages. Warehouse distribution can be thought of as computer read only memory where data is stored in the large amount and when data is required to be used, it is fetch to the main memory. Warehouse distribution centres play somewhat similar role, they store large amount of items and products for future use and whenever distributers and retailers need these items they can get them from these warehouses. Another big advantage of such centres is that using some programming algorithm, the warehoused distribution centre’s data can be statistically analyzed, on which organizational level decision making is based.

Warehouse and distribution centres contain most valuable tangible assets of a company and in order to keep these asserts secure, adequate security steps must be taken. These steps include, trained staff, good accountants and a perfect manager who can properly manage check-ins and check outs.

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Utility Warehouse in Auckland

Large organizations and manufacturers, particularly brick and mortar companies supply large amount of items and products to whole sale dealers and retail stores. For the seamless supply of these products and in order to efficiently track sale, purchase, import, export and check-in and check-out of the products, these products need to be stored at a central storage place. Such a storage place is called warehouse in business terms. In this regard, a term utility warehousing has originated in recent years because these warehouses are just like utility stores for large organizations and these organizations take several advantages by the storing goods in these warehouses.

Warehouses are just not limited to business and industry but every walk of life. The concept of utility warehouse has evolved from their usage as a utility store in all domains. Consider the example of a hospital where constant supply of medicine and surgical equipment is required. It will not be a good idea to purchase products on daily basis from dealers. Therefore, hospitals maintain utility warehouses where they store medicines or equipment in sufficient quantity to meet the requirements of next six months. Same is the case with large retail stores which have maintained their own utility warehouse in order to store products and household items to ensure uninterrupted supplies.

The concept of utility warehouse has gained worldwide acknowledgement. In New Zealand, several large organizations have set up numerous warehouses in several cities in order to promptly meet the demands of the customers. Utility warehousing has two benefits, one is the uninterrupted supply of items and second is the statistical information which can be obtained by careful analysis of products being sold and purchased through these warehouses. This statistical data can help organization in organizational level decision making. In short, utility warehouses have changed the way traditional business is done through its myriad of benefits.

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Warehousing is the process of storing goods

Warehousing is the process of storing goods in warehouses. A company can has its warehouse in parallel with good production, or it can only provide warehousing services & Distribution is the process of distribution of products from producer to the end user. There can be many ways in which this is done; these ways are also called channels. There are many ways in which distribution of products from warehouses occur.

Trucks
Warehousing & distribution companies most commonly use trucks for distributing the goods.

 

 

 

 

 

 

Pros:
1. Loading and unloading in trucks is easy
2. Trucks are commonly found, their availability is one of the biggest advantage.
3. Using trucks for distribution of warehouse goods in most economic.
Cons:
1. Delivery time of distribution increases with distance
2. Can be costly when distance is large

Railways
Railways are another media to deliver goods from one warehousing and distribution centre to other. They come with their own pros and cons.

 

 

 

 

 

 

Pros:

1. Large quantities of goods are delivered for lower costs
2. Generally, few delays are caused while using railways
Cons:
1. Trains have their own set timetable that they follow so they might not be too flexible.

Waterways

In case your warehouse is in one country while the customer in another, opting for waterways. Water ways can be internal, inter coastal or international.

 

 

 

 

 

 

Pros:

1. The cost of using waterways for distribution of goods is very low
Cons:
Few of the main cons of this method are:
1. This method is very slow compared to any other method.
2. It is least flexible as waterways have their own timetable to follow and might not be setting sail for months at times.
3. Delays can be caused by weathers, making the process even more slow.

Air Transportation:
Almost all well-established warehousing and distribution companies in New Zealand opt for this method as it is the most reliable and swift.

 

 

 

 

 

 

Pros:
1. Speed wise this method is the fastest.
2. Reliable in terms of time.
Cons:
1. This is the most costly method compared to others.

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Warehousing and its Significance in Auckland

Almost every company in New Zealand takes up the services of warehouse. It is because they realize that warehousing plays the key role in the smooth running of logistics and supply chain. For any warehouse, the performance criterion is its productivity and performance.

There are many reasons for which companies need warehouses, and the companies working in New Zealand are no different. Warehousing and distribution set ups utilize the storage space to the best of its ability. The process of inventory maintaining and filing make sure productivity is at its highest level. This productivity is also increased if one reduces material handling time, operation cost and order filling time. The more productive a warehouse is, more cost and time it will save and be a backbone of your logistics function.

Some of the functions performed in a warehouse are:

Loading and unloading

Warehousing and distribution centers have special places and processes when it comes to loading and unloading of goods. Unloading of the material, recording and counting, loading or stocking it in the warehouse and then maintaining an inventory is all done seamlessly if one has a well-managed warehouse. This saves both time and increases efficiently.

Material Movement

Within the company or when distributing, material movement is one of the most headaches inducing tasks. Making sure that one gets the job of procurement done involves the person knowing where to look for the good and whom to give it to. A well-organized warehouse makes this task very easy and saves both time and energy.

Inventory

A good warehousing and distribution owner should at all times know which stock is present in the warehouse, which is about to finish and which of the finished goods he need to dispatch. Inventorying the warehouse makes all this possible in the easiest way conceivable. Warehouses, in this regard, make the initial processes of supply chain easier to be done and more efficient.

 

All in all, when one is dealing with storage and distribution of goods, a warehouse is a must have commodity. The more organized and well-managed your warehouse is, smoother your overall business will be.

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Inventory Management in Auckland New Zealand

Most of the entrepreneurs do not care about the inventory of their business unless their inventory manager leaves.  As a fact of matter, making good hires and applying other techniques such as putting blue dot next to your best selling items are the two main aspects of proper inventory management. However, there are many mistakes business owners commit while managing their inventory and following lines explain some of those.

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  • Holding Too Much Inventory:

Most of the owners maintain too much inventory fearing that they will be cut short of critical items when they are most required. However, this will not only consume a lot of working capital but will minimize the profits as well. Furthermore, there are increased chances of inventory getting damaged, depreciated and even obsolete. You might have to even sell old inventory at discounted rates. Therefore, it is always better to project how much inventory you need and when do you need it in order to maintain inventory in best possible manner and improve your profits.

  • Inaccurate Inventory Tracking:

Once you have sorted out how many items you need, you should always have them on hand. Opportunities for miscounts are everywhere as far as inventory management is concerned such as during receiving and order fulfilling. In this regard, it is advisable to embrace latest techniques such as bar coding and electronic data sharing (EDS) to eliminate the chances of data entry errors.

  • Lack of Priorities:

It takes a lot of effort and time to identify which items always have to be in inventory. The greatest aspect of proper inventory management is that you have to concentrate on items that matter the most. In fact, only 20% items are enough to meet 80% of your requirements. Therefore, you need to spend more time on these 20% items in terms of recording, reviewing in stock position and forecasting.

  • No Backup Plan:

As most of the inventory is managed through computers nowadays, it is important to maintain a proper backup that will save your from a disaster in case the computer breaks down. The proper inventory management demands you to maintain a remote backup storage in case the main source is out of order. For More Information Regarding Warehousing and Distribution by Clicking Here.

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Warehouse Storage Solutions in Auckland

Instead of maintaining in house inventory, it is always better to hire the services of a reliable and well reputed warehouse storage facility as the benefits it offers are endless. For instance, it will save you a lot of money because you will not have to own or rent warehouses to store your critical items. Similarly, it will also help you to deploy as less staff as possible to look after your inventory present at some outsourced warehouse.

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However, there are certain things you need to consider before reaching any outsourced facility for your inventory. Generally, the operations of warehouses revolve around two main things that are proper handling and storage. You need to identify how the targeted warehouse storage facility receives the inventory, do they store it as needed and transport the item in time so that you can assemble them to fulfill the customers’ orders.

The main purpose of the handling aspect of warehousing is that your goods are unloaded and moved for storage in best possible manner. Similarly, the responsible warehouse should verify the orders from your side and the loading on vehicles departing to the assembly line should also be cross checked in order to ensure transparency and to decrease the chances of miscount.

There are other necessary factors to consider before hiring any warehousing storage facility. These factors normally include site of the warehouse, the material handling procedure, product-mix analyses, safety and security, size and portfolio, layout, design and warehouse management system as well as audit and accounts procedures.

However, most important of above mentioned factors you need to consider is warehouse management system of any warehouse storage site. A good management system will integrate the software support and procedures and will standardizing the processes of handling and storage. In this regard, key features of a good warehouse management system are work order management, receiving, put-away, quality analysis, cycle counts, inventory control, task management, yard control etc.

Above mentioned are some of the important points you need to keep in mind before hiring the services of any warehouse and distribution centre.

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Centralized Warehouse Storage Solutions in Auckland NZ

Centralized warehousing is a system where the supplier and the retailer maintain a single warehouse as compared to spreading different facilities to cover a certain territory. Although, centralized warehouse storage can cause longer lead times on orders yet a centralized system is much more useful and beneficial as compared to decentralized systems.

 

Advantages of Centralized Warehouse Storage Solutions:

Following lines explain some of the most important benefits of centralized warehouse storage.

  • Customer Service:

A centralized warehousing storage solutions allows a company to concentrate its best people, inventory systems and equipment at fewer places. This enables warehouses to focus on the needs of their customers more effectively. This can especially be beneficial for retails stores and or customers. Instead of coordinating the details of shipment, service reps try to meet the requirements of the customers as opposed to a decentralized warehouse storage system.

  • Lower Operations Costs:

Companies can also reduce a number of operational costs by centralizing their storage facilities. Companies will pay less utility expenses because you will have to own or rent less number of buildings. Similarly, you will not require hiring large number of employees and do not need to install sophisticated computer technology as well. This also helps warehouses to offer low prices to customers yet earning more profits.

  • Lower Inbound Costs:

Centralized warehousing storage solutions also lead to reduced inbound costs in addition with reduced operational costs. This helps a retailer to avoid shipment going to multiple locations and saving a huge amount of money by taking in a huge quantity of equipment from a single location. This is definitely is a better deal for both customers and retailers. It also results in increased profits and better customer satisfaction for retail distribution centre.

  • Online Retailer Relationships:

The centralized warehousing storage solutions will also help companies to increase their customer base through online retailers. This is especially appealing for online storefronts as it offers fast delivery on fulfillment in addition with concentrated inventory storage. Similarly, online stores maintain their own online centralized storage that also helps them  to reduce operational as well as storage costs.

 

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How to increase Warehousing Efficiency in Auckland

Warehousing or warehouses are large storage units used for the storage of finished goods. In some cases warehouse also store raw material from which finished good can be made. Distribution means distributing these finished goods to the consumer etc.

Warehousing is backbone of the logistic function in any company and is required to fulfill the objective of logistics.

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A good warehouse must:

1.      Maximize the utilization of space in warehousing

This can be done by storing consolidating products and storing them in bulks. Racks and shelves can be made use of in this process, or the item can be stocked one above another if they are not in danger of getting squashed etc. Practice of shelves and racks is especially famous in New Zealand.

2.      Increases productivity of warehousing

This can be done by good information handling. If the user knows how much material is in stock and how much is required for production then it will save him form ordering the wrong stock and wasting money. It is also a good practice to keep the inventory list updated religiously for this method to avoid any confusion. Productivity increases when plant is working most efficiently and it starts and ends at the warehouse.

3.      Asset utilization

All the assets in the warehouse; shelves, racks, pallets, computers and files for inventory etc. must be utilized to their maximum capacity.

4.      Reduce Material handling and operating cost

This is done by reducing number of required material loading and unloading and material movement. The operating cost is reduced by making one station for loading and unloading so that less labor force is required for this purpose etc.

5.      Reduce storage time in warehousing

Minimize the distance between unloading station and the storage station. This can also be done by providing easy access to the storage area so that items can be placed and withdrawn in short time. The way should be clear of any hurdles and extra items. Products not in use or those deteriorating should be disposed of accordingly.

Most of the companies in New Zealand follow these 5 golden rules on increase and meet the objective of their logistics and warehousing.

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Utility Warehouse Saves a lot of space and cost

The concept of utility warehouse is a relatively new one that has been gaining real popularity in recent years especially in countries like UK, USA, Australia and New Zealand. The greatest example of such warehouses is the Utility Warehouse operated by the Telecom plus in United Kingdom. This particular warehouse renders valuable services in the fields of energy and telecom.