Ten things to know about Warehousing and Distribution
- All distributors have one thing in common, they ship from warehouses.
- Although “Wholesale Trade” its own SIC, targeting verticals like electronics, fasteners or healthcare better defines the customer.
- Most manufacturers have distribution warehouses but do not consider themselves to be in the distribution business.
- Successful distributors see themselves in the service business. The warehouse is their service center.
- Many distributors are afraid of taking on new business that the warehouse cannot accurately fulfill.
- At least half of small to medium sized (SMB) distributors do not scan bar codes.
- The use of bar coding in the warehouse yields a better internal rate of return than most investments
- A “bar coding” project in the warehouse can return on investment in less than 6 months
- Inventory loss is deducted from net revenue. An inventory loss of $10,000 can require as much as $300,000 in additional sales to recover.
- What does an error cost? A 2% error rate can mean 4000 miss-shipped orders per year for a company that ships 1000 orders per day
Share This Story, Choose Your Platform!