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Vol 28 - No 03 - April 2002

Do you really need a warehouse?

If you are supplying the construction industry, you may have noticed the current wave of industrial building. There are large extensive modern structures rising up at almost all motorway junctions. The constructor's board will identify the building as a new extensive warehouse for rent or for a prestigious enterprise.

It may be impressive to have a large new building, but is it essential? In reality a company that puts its name on the side of the warehouse is advertising the fact that they cannot control their supply chain. If you think of the facts, this is an obvious conclusion. The warehouse represents a break in the flow of the supply chain. If the supply and demand are organised properly, then there should be no need to store large quantities of items.


Page number: 9
Word count: 1000

Related Topics:
Enterprise resource planning
Forecasting
Inventory management
Supply chain

 

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