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The Significance Of Warehouse Storage Cost Control

- Sep 06, 2017 -

Warehousing cost refers to the warehousing business in the storage process, including handling, storage, distribution processing, sending and receiving items such as the links and the construction, total purchase warehouse facilities such as the consumption of manpower and material resources and the cost of risk. The level of warehouse logistics cost management is of great significance to the whole logistics cost management. The main manifestations are:


1. Solve the difference between supply and demand times


Some commodities are seasonal production, perennial consumption; some commodities are perennial production, seasonal consumption; some commodities are seasonal production, seasonal consumption, or perennial production, perennial consumption. No matter what the situation, the product from the production process to enter the process of consumption, there is a certain time interval. Goods through the storage process, to resolve the contradiction between supply and demand and in time has created new benefits.


2. The transfer of goods from production place to consumption place


Warehousing activities can solve the contradiction in terms of space, time and the number of varieties, production and consumption, storage and play a role as a bridge between production and consumption; connection in geographical commodity production and consumption on the separation between producers and consumers; inconsistent time between commodity production and consumption; differential regulation of commodity production and consumption patterns; balance of transportation load, reduce the transportation cost. Such as mass production, FCL transportation, split in the process of warehouse to retail and other functions.

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