Role of Warehousing in Supply Chain Management

Warehousing is one of the most underappreciated aspects of the supply chain process, but it is also critical. The correct warehouse may improve the efficiency and convenience of your whole production and distribution strategy.

Warehouse, inventory management, and well-designed distribution operations can boost efficiency while lowering costs.

For sellers who are just getting started with their eCommerce business, warehousing may be an unnecessary expense that will not yield significant returns. However, warehousing benefits your company and the entire supply chain in various ways.

What is Warehousing?

Warehouses are designated storage areas in various locations that allow the sellers to deliver the products to the customers easily. In an era, where the internet dominates the shopping culture, orders might come from any part of the country. In Such cases, reaching the customers can get quite challenging. It is where the warehouses come in handy for the sellers. 

For certain types of enterprises, a warehouse might be a separate company. A small seller selling clothes on Instagram will use their room as a storage space. A warehouse, for example, could be a 16000 sq. ft. building where goods are housed for SME or manufacturing enterprises.

A warehouse contains various components such as storage racks and bins, climate control systems, warehouse management software, and inventory management systems to keep the demands of product deliveries in sync. It also includes picking equipment to transport goods from one location to another.

A distribution center differs from a warehouse in that it includes picking, packaging, shipping, and storage. Today, however, practically all warehouses are constructed to include distribution center functionality.

As a result of these overlapping goals, warehousing has emerged as a critical component of the supply chain management process.

Planning, information gathering, product procurement, inventory management, transportation & shipping, and return of goods are all part of the eCommerce supply management process.

Importance of Warehousing in Supply Chain Management

A seamless and effective supply chain necessitates the storage of commodities. Raw materials, semi-finished goods, and final goods are stored and managed in warehouses. That is to say; warehousing should be a top priority in your overall business plan.

Suppliers can own and run their warehouses or have their items stored and distributed through a third-party warehouse. There are two sorts of warehouses, and the one you choose will have an impact on how it functions in your supply chain:

General warehouses keep your items safe and secure until you need them, which is usually for a long time. Businesses typically store seasonal products or vast quantities of backup inventory in these warehouses. In most cases, they only provide limited handling and transportation services.

Distribution warehouses provide a broader range of services, including short-term storage and transportation, handling, order fulfillment, and distribution. Warehouses perform a unique function in the supply chain, handling every step of the process from receiving a product from a supplier to delivering it to a retailer or client. 

Benefits of Warehousing in Supply Chain Management

Supply Chain Management

Incorporating warehousing into your supply chain operation has numerous advantages. Here are a few examples:

Management of Inventory

When raw materials and items are held in a warehouse, keeping track of and managing inventory is simple and straightforward. When you put semi-finished or finished products in warehousing, you can ensure that you always have adequate supply to satisfy demands, allowing you to better control your production levels.

A well-managed warehouse can give you a consolidated inventory tracking system. You’ll be able to store, ship, and distribute products more efficiently and handle any incoming orders more quickly.

Proper inventory management combined with a sophisticated storage strategy can offer your company the advantage of producing on time and a budget! As a result, with this type of system in place, you can continuously monitor your inventory, resupply when supplies run low, and stay updated on which SKUs you have in the warehouse.

You can improve this process by using specialized inventory management software. However, if you keep all of your things in one location, you can easily track them.

Expansion Opportunities

You can keep whatever you don’t need right away off-site by outsourcing your storage and distribution to a warehouse. That means you don’t have to worry about storing all of your raw materials and completed goods at your production plant. As your business expands, your inventory can grow, eliminating additional purchasing space.

Improved Profits

Using warehousing to consolidate storage and distribution in one place can cut your operating expenses and enhance profitability. Fewer people, minimal equipment and technology, and fewer buildings are required, lowering utility and transportation costs.

The correct warehouse will improve the efficiency of your operations by providing flexible short- and long-term storage. It will also help in accurately and rapidly processing orders, and making inventory data easy to track. These services save you time and money, allowing you to focus on your strengths.

Reduction of risk

One of the most difficult problems is misplaced warehouse inventory. It’s unavoidable that some merchandise may be destroyed, misplaced, or incorrectly accounted for during the process of transferring and organizing space. Unfortunately, this can raise the cost of inventory per unit, which raises the total cost of goods. Finally, price inflation has an impact on the business’s competitiveness. It may also make it more difficult to achieve 100 percent order fulfillment.

Keeping your goods in a warehouse reduces the chance of inventory loss while also transferring risk to the warehouse. To guarantee that your items are safely housed, a reputable warehouse should provide reliable, 24-hour security. You can trust Pickrr for your warehousing and fulfillment needs as it has warehouses pan India to also help you reach the target audience better. 

Order Pickup with Efficiency

Order picking is an activity that needs extreme accuracy. If done incorrectly, you risk sending the wrong package to your consumer, causing significant damage to your business. Furthermore, if you work with fragile commodities, incorrect packaging might cause damage to the items, resulting in more significant losses.

As a result, you must keep your inventory in good order. Hence, you’ll have no trouble finding them and picking them up at their designated location. For example, if you offer electrical devices with comparable specs, such as mobile phones are readily confused. As a result, you will tarnish your service. 

To avoid such mishaps, look for a warehouse with well-placed racks and bins with automated software that can be incredibly beneficial.

Tamper-Proof Packaging 

Next, tamper-proof packaging is a must if you want your supply chain to move forward without being harmed along the way. Companies without warehouses typically have difficulty storing enough packaging material for their products.

You can select zones for storing your packaging material according to your SKUs and never pack a product improperly with a dedicated warehouse.

Your packaging highly influences your branding. It is the buyer’s first impression of your brand. As a result, it must always be tamper-proof for the goods to reach the buyer securely and undamaged.

Furthermore, shipping providers bill you based on the volumetric weight. This pertains to the package’s dimensions. With the warehouse in place and packaging material available, you may select the most appropriate packaging material for each SKU, lowering shipping costs and reducing weight differences. 

On-Time Shipping

A warehouse allows you to manage all of your shipping from one location. \Chances for confusion are considerably less  once your products are stocked, chosen, and packaged in one place, and you may quickly cut the TAT for your first mile operations.

Furthermore, the location of your warehouse has a big influence on order delivery times. If your warehouse is close to your buyer’s delivery address, you may deliver your product quickly, save money on transportation, and avoid returning orders due to late deliveries.

As a result, you can simply optimize both first- and last-mile operations with a well-designed warehouse.

Price Stabilization 

You can buy products in bulk and sell them throughout the year, depending on the season and location. For example, if you’re an apparel retailer, instead of putting winter items on sale and losing money, you may store them in your warehouse and resell them next season. By keeping your products for a more extended period, a price stabilization warehouse helps you maintain consistent stock levels and optimize revenues.

Government rules change often, allowing you to reorganize your priorities. Because you won’t have to restock goods as frequently, you’ll be able to make more money.

Excellent Customer Service

It will make your customer very happy if your item is delivered on time, in tamper-proof packaging, and without additional fees. As a result, if you have a warehouse, you may maximize client happiness by streamlining your processes.

Almost every online seller wants to know when their order will be delivered. You can’t get that via a random fulfillment process. You’ll need a well-planned supply chain to establish the delivery deadline based on the length of time each technique requires. As a result, if you have a warehouse that keeps everything in stock and ensures that the process is consistent, you will be able to give your buyer a specific delivery date.

Customer service is the last but the most important part of owning a business. You will have to return customers only when you have exceptional customer service. Good customer service will ensure customer trust and satisfaction, hence, resulting in long-term customer loyalty. 

How Do I Begin With a Warehouse?

How do you get started with warehouses? That is the next big question. For a new seller, a warehouse can seem like a scary fulfillment phrase requiring a tremendous deal of knowledge.

For starters, if your company is small and you need to transport 5 to 10 items each month, you can use a self-storage facility. Make sure you’ve got the correct storage techniques, and stick to a strict inventory management strategy like first-in-first-out or just-in-time inventory. This will assist you in accomplishing your goal quickly by allowing you to do things on your own. However, when your company grows, this strategy will become unsustainable.

This means you can rent storage space or partner with a third-party inventory and warehouse management service. It’s time to search for a little better solution once you start shipping more than 50 orders each month. For the following reasons, we would advise going with the third party:

3pl partner
  • There is no further investment required.
  • Educated personnel
  • Ample warehouse space at affordable prices
  • All operations are handled, including storage, inventory management, packing, and transportation.
  • Look for a partner closest to your customer’s location to reduce shipment delay, weight diction discrepancies, and return rates.

Pickrr provides automated warehouse fulfillment solutions to sellers across India, allowing them to manage inventory across numerous locations.

warehouse solution

Use Pickrr Plus Fulfillment to improve your company’s supply chain management. Here are some of the advantages:

  • Same-day or next-day delivery options
  • Inventory control
  • Reduces warehouse management work and time
  • Improve the customer experience
  • Keep track of inventory in real-time


Warehousing is the backbone of your supply chain management organization. All of the key fulfillment procedures are completed here. As a result, you must make an informed decision and carefully carry out all actions from start to finish. With the right provider and a well-organized supply chain, we are confident that any eCommerce company can prosper.

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