Central warehouse
The term central warehouse describes a supply structure within procurement logistics in which the manufacturer does not supply decentralized branch warehouses, but rather a central warehouse that is managed by the dealer or an external logistics service provider .
aims
A central warehouse structure aims to bundle the flow of goods and to reduce inventory levels and transport costs . In particular, the purchase of larger quantities also results in lower purchase prices for retailers. Existing retail stores can be used as sales areas. In addition, the centralization can also reduce the administrative control effort in the warehouse as well as the costs for investments and deployed personnel compared to decentralized storage. At the same time, the risk of goods being misallocated can decrease. In contrast, there is a commitment to a region based on a multi-year lease to a warehouse. In addition, delivery times to customers who are not located in the regional area can be extended. Higher transport costs are then also possible. The goals of the central warehouse concept come into play in particular with a customer structure in which a few major customers are regionally concentrated.
Web links
bibliography
- ↑ Central warehouse. Retrieved December 13, 2019 .