Most of the industry players will adopt the strategy of consolidation followed by expansion. Consolidation would result in decline in warehouse operating cost. Most warehousing occupiers are expected to take decisions purely on the basis of reach to market, quality and size requirements. While restructuring the warehouse, companies can opt for various warehousing models….
In the earlier article, we talked about the impact of GST on warehousing. The major advantage of GST on warehousing is that companies will now consolidate the stock at their warehouses. In order to ensure that the delivery and service is not impacted by the consolidation of the warehouses, there is a need for improved demand planning and stock flow management.
Companies will face a major challenge in terms of timely delivery of good across wider geography, esp. if the warehouse near high consumption area is closed down. This calls for a focus on route planning as transportation networks and management would eventually turn out to be a critical factor for timely service delivery. No doubt, this requires advance planning to build an agile, efficient and stock flow management model.
Here is a brief model that we propose: