Kritchaphat Kaewbunjerdkit
s3776219
Warehouse and Distribution Channels
Assessment Task 1a – Research Essay –
Title:
The impact of strategic storage location on distribution channels i.e. "which factors to consider
determine best location to store/prepare goods for distribution?"
Abstract
The purpose of this research easy explores the impact of strategic storage location on
distribution channels. Highlighted the important of storage site as a key aspect to increase
productivity, flexibility and reliability of the supply. The fact that warehouse plays a main part in
managing goods, developing the storage location approach has entailed opportunities and challenges.
This enables products to be moved and allocated faster inside the warehouse and logistics channels,
including better responding time and lead times. However, the ordering of products and determination
of storage locations turned to be primary issues whereby a non-strategic storage site has resulted in
the potential losses of demands and revenues. Yet, fundamental causes of storage site and factors in
determining location are carried out to prevent misinterpretations and solve problems. Beyond
inventory accuracy and transportation issues, causes related to operational cost reduction, shorten lead
time and improve responsiveness have also been delivered. Meanwhile, terms of labour, customers
and supply base are reflected to promote a more impactful storage site. Thus, the line of distribution
channels and the flow of logistics are managed effectively and well performed.
Introduction
Throughout decades, warehouses were experienced as an intermediary between producers and
consumers found along the logistics flow. The advances in technology and increasing flow of goods
have affected the way in which warehouses operate as so handling materials. Recently, many
organisations have taken a hard observe at long-term strategic planning to define ways that profits can
still be achieved despite confronting an economic downturn. One way to accomplish growth and
profitability is to “properly utilize warehouses” (Kalinowski 2016). The concept of strategic storage
location has been introduced whilst bringing about challenges and effects. Nevertheless, to improve
warehouse operational efficiency, both fundamental causes and determination factors are considered
in relation to the storage site regarding best performances and profound interests.
, Kritchaphat Kaewbunjerdkit
s3776219
Background
In warehousing, strategic storage location is remarked as a direct key to extending better
distribution channels as well as accessing potential new customers. It allows goods to be managed,
allocated and delivered, domestically and globally given assurance of negligible to no disruptions to
the supply chains. The more optimal storage locations, the more ability to optimize speed and shorten
lead times (Sunol 2019). By locating warehouse storage in a proper area, the company will be able to
minimise overall costs and decide the fastest route whereby a quick responding time is testified
(Zhou, Sun, Li, Cao and Higgs 2018); the completion in serving customers. This ensures a meet of
satisfactions and positive feedbacks by the end customers. Failing to do so risks relevant to security,
integrity of the cargo and the safety of the employees can somehow incur.
With the rapidly growing business needs and market demands, the determination of storage locations
and the ordering of products have become primary challenges while guaranteeing warehouse
efficiency and quality of service at low cost (Silva, Vasconcelos and Cavalcante 2015). Under a non-
strategic circumstance, the complexity and disruptions to supply are emerged. Yet, the burdens of
inventory holding cost presented as more goods are held along the distribution lines due to fewer
demands and inaccessibility of the products (Meng 2006); resulting less incomes and limited orders.
The rise in old, out of date, unfashionable, loss and damaged stocks has put a great of concern
towards the business in hardly remain operating for foreseeable future as its expenses now exceeded
the profits. The shutdown will soon be forced with regard to its high maintaining costs and ineffective
activities underlining the low standard features of a storage site in warehouse and logistics network.
Fundamental Causes
While emphasising the important of strategic storage location, a company must firstly draw
the fundamental purpose of “what its warehouse is intended to do and in what timeframe”
(Kalinowski 2016). There are many driving forces which caused the storage site to be chosen,
involving operational cost reduction, shorten lead time and improved responsiveness but two major
elements come down to inventory accuracy and transportation issues. Generally, location is what
warehouse use to handle goods closer to its customers. One central location may not be best to serve
as so establishing multiple storages would also be costly. This is why a strategic storage location has
implemented so a thoughtful decision can be made in determining whether to construct a new storage
site since future events tend to be difficult to predict and prepare over the long term.
s3776219
Warehouse and Distribution Channels
Assessment Task 1a – Research Essay –
Title:
The impact of strategic storage location on distribution channels i.e. "which factors to consider
determine best location to store/prepare goods for distribution?"
Abstract
The purpose of this research easy explores the impact of strategic storage location on
distribution channels. Highlighted the important of storage site as a key aspect to increase
productivity, flexibility and reliability of the supply. The fact that warehouse plays a main part in
managing goods, developing the storage location approach has entailed opportunities and challenges.
This enables products to be moved and allocated faster inside the warehouse and logistics channels,
including better responding time and lead times. However, the ordering of products and determination
of storage locations turned to be primary issues whereby a non-strategic storage site has resulted in
the potential losses of demands and revenues. Yet, fundamental causes of storage site and factors in
determining location are carried out to prevent misinterpretations and solve problems. Beyond
inventory accuracy and transportation issues, causes related to operational cost reduction, shorten lead
time and improve responsiveness have also been delivered. Meanwhile, terms of labour, customers
and supply base are reflected to promote a more impactful storage site. Thus, the line of distribution
channels and the flow of logistics are managed effectively and well performed.
Introduction
Throughout decades, warehouses were experienced as an intermediary between producers and
consumers found along the logistics flow. The advances in technology and increasing flow of goods
have affected the way in which warehouses operate as so handling materials. Recently, many
organisations have taken a hard observe at long-term strategic planning to define ways that profits can
still be achieved despite confronting an economic downturn. One way to accomplish growth and
profitability is to “properly utilize warehouses” (Kalinowski 2016). The concept of strategic storage
location has been introduced whilst bringing about challenges and effects. Nevertheless, to improve
warehouse operational efficiency, both fundamental causes and determination factors are considered
in relation to the storage site regarding best performances and profound interests.
, Kritchaphat Kaewbunjerdkit
s3776219
Background
In warehousing, strategic storage location is remarked as a direct key to extending better
distribution channels as well as accessing potential new customers. It allows goods to be managed,
allocated and delivered, domestically and globally given assurance of negligible to no disruptions to
the supply chains. The more optimal storage locations, the more ability to optimize speed and shorten
lead times (Sunol 2019). By locating warehouse storage in a proper area, the company will be able to
minimise overall costs and decide the fastest route whereby a quick responding time is testified
(Zhou, Sun, Li, Cao and Higgs 2018); the completion in serving customers. This ensures a meet of
satisfactions and positive feedbacks by the end customers. Failing to do so risks relevant to security,
integrity of the cargo and the safety of the employees can somehow incur.
With the rapidly growing business needs and market demands, the determination of storage locations
and the ordering of products have become primary challenges while guaranteeing warehouse
efficiency and quality of service at low cost (Silva, Vasconcelos and Cavalcante 2015). Under a non-
strategic circumstance, the complexity and disruptions to supply are emerged. Yet, the burdens of
inventory holding cost presented as more goods are held along the distribution lines due to fewer
demands and inaccessibility of the products (Meng 2006); resulting less incomes and limited orders.
The rise in old, out of date, unfashionable, loss and damaged stocks has put a great of concern
towards the business in hardly remain operating for foreseeable future as its expenses now exceeded
the profits. The shutdown will soon be forced with regard to its high maintaining costs and ineffective
activities underlining the low standard features of a storage site in warehouse and logistics network.
Fundamental Causes
While emphasising the important of strategic storage location, a company must firstly draw
the fundamental purpose of “what its warehouse is intended to do and in what timeframe”
(Kalinowski 2016). There are many driving forces which caused the storage site to be chosen,
involving operational cost reduction, shorten lead time and improved responsiveness but two major
elements come down to inventory accuracy and transportation issues. Generally, location is what
warehouse use to handle goods closer to its customers. One central location may not be best to serve
as so establishing multiple storages would also be costly. This is why a strategic storage location has
implemented so a thoughtful decision can be made in determining whether to construct a new storage
site since future events tend to be difficult to predict and prepare over the long term.
