Few things are as crucial to the profitability of online stores as a functioning management of stock and logistics. In this article, you will learn what it means to have a centralized warehouse, and how PostNord can assist you in warehouse management.
What is a central warehouse?
A central warehouse is your primary warehouse from which all your products are shipped – either to the end customer or to smaller, local warehouses. The opposite is called a decentralized warehouse structure and means that the company has multiple independent warehouses that, for example, are responsible for different geographical areas or different products.
The advantages and disadvantages of a central warehouse
Advantages:
- Lower warehouse costs
- More efficient warehouse organization
- Lower staff costs
- Better equipment in the facilities
- Lower minimal warehouse levels
Disadvantages:
- Potentially higher transportation costs
- Longer transportation routes
- Reduced flexibility in terms of supply
Things to consider when creating your warehouse solution
Warehouse management is an important piece of the puzzle in all e-commerce delivery chains, and it’s rarely profitable to simply copy someone else’s solution as every company has different needs. A centralized warehouse can be more time and cost effective to some businesses, but the opposite to others. To find the right solution for your needs you need to review your flows from a birds-eye perspective, to ensure the solution and placement of warehouses is adapted to where your partners and customers are located. If you don’t want to spend time and energy on comparing different options, you have a lot to gain from hiring someone else to do it for you – it can save costs in the long run. Also consider evaluating your distribution chain regularly to optimize it continuously.
How PostNord Business can simplify your use of a centralized warehouse
Do you find it difficult to manage daily work tasks while also ensuring that all delivery flows function as they should? Running an e-commerce business can be challenging enough as it is, and that’s precisely why we created Portal Business; a platform which helps you maintain control in all situations. Portal Business is equipped with a range of different tools that allow you to, for example, send personalized notifications to customers, track deliveries to and from the warehouse, and change the delivery method should the need arise. You also gain access to statistics surrounding your business so that you can always make smart business decisions in the future. All you need to do to get started is to create a free business account – it’s that easy!
