Cut storage costs sidestep risks

By realigning processes along the value chain, companies can prevent procurement bottlenecks and avoid risks while cutting costs. Warehouse capacity has to be planned as effectively as possible and operational procurement aligned with planning of demand, merchandise, and assortments. This also enables more accurate, long-term resource planning of personnel and vehicle fleets.

If long delivery times are usual for a product, the storage capacity available on the delivery date must be clear when the order is placed. Procurement and delivery times of six months and more are normal for many products. This makes it all the more important to know the capacity the target warehouse can provide when the merchandise arrives. And that calls for detailed advance planning of resources.

KPS specialists provide you with support when you optimize the operational planning and control of your storage capacity. Available capacities over the course of the season are determined on the basis of parameters such as plans for developing floor space and storage. These analyses also reveal whether additional storage facilities need to be rented. Demand-driven and timely planning considerably reduces costs for rent paid to third parties.

The capacity check can initially be performed at aggregated level (for example, at month level). This is particularly useful when doing business with the Far East, where there are often delays at day level due to factors such as time-consuming customs procedures and long travel times by sea. The logistics managers and the shipper agree on the exact goods received and stock putaway soon before the goods are delivered. This enables the necessary storage capacity to be reserved for a particular day.

Sophisticated warehouse management and a holistic supply chain are essential for integrated processes and efficient, real-time corporate management. KPS supply chain specialists support you when it comes to streamlining your processes and accelerating throughput times, enabling you to work more efficiently.