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These days, logistics presents an integral part of every large business, as it allows to increase the sales considerably. Therefore, the majority of companies invoke the warehousing approach, the contribution to profitability and efficiency of which cannot be underestimated. However, establishing proper warehousing systems and activities requires considering a wide range of details, for instance, choosing a space and hiring employees, and it should be done individually for a particular business (Starting a Warehouse Business, n. d.). The following case implies strategy design for a consumer electronics company, which specializes in selling cell phones, tablets, and personal computers. There is the necessity to implement warehousing operations for the reception and distribution of the products, which have been manufactured outside the United States. Consequently, it is required to elaborate the transportation system to North America, as the most profitable regions for the company are Northeast and West parts of the US. In addition, the products are available to buy in Canada. Consequently, the purpose of this paper is to analyze the current tendencies in the warehouse organization process and propose some sufficient recommendations for the electronics company.
One of the most discussed questions, which arises during the process of warehouse organization, regards automatization. According to research, automation can be a costly investment for new business owners, but these kinds of devices can reduce labor costs, improve efficiency and help you streamline your warehouse operations ( Starting a Warehouse Business , n. d., para. 29). Even though automatization implementation requires significant funding, it may be profitable in the long run, as it allows to decline the expenditures on the staffs salary. In addition, it would minimize the problems with recruitment and personnel training. The other important benefit implies speeding multiple routine processes, which decrease the time of delivery to a store or a customer. In the present-day developments, this factor appears to be extremely important, as a customer is highly likely to prefer the company, which provides the most rapid transportation. For these reasons, automatization is worth establishing to supply sales increase and cover as many customers as possible.
Another tendency, which becomes increasingly popular in the field of logistics and warehousing, addresses ecological concerns. Ries et al. (2017) highlight that amongst others, logistic activities in global supply chains have become a major cause of industrial emissions and the progressing environmental pollution (para. 1). The authors also mention that the predominant amount of carbon dioxide associated with logistic activities is caused by storage and material handling processes in warehouses (Ries et al., 2017, para. 1). In addition, oration warehouses, especially large ones, require a great amount of energy. Therefore, it is essential to consider this issue before establishing a warehousing system. One of the simplest proposals on addressing ecological concerns implies implementing solar cells in order to make energy consumption more environmentally friendly. Rüdiger et al. (2016) also advance the assessment method for GHG emissions of logistics facilities and the allocation scheme for EPIs (para. 3). Such an approach allows the business owner to monitor and control the gas emission caused by products storage. These options are highly recommended to be implemented, as they both contribute to the nature perseverance and increase the credibility from the customers perfective.
In summary, the major tendencies concerning warehouse activities and systems regard the automatization and ecological issues. Although automatization involves considerable expenditures, it appears to be beneficial in the long run. It improves the quality of the customer service and increases the profit of the company. As for the environmental concerns, they may be considered by solar cells establishment and sticking to GHG emissions assessment and EPI allocation schemes.
References
Ries, J. M., Grosse, E. H., & Fichtinger, J. (2017). Environmental impact of warehousing: A scenario analysis for the United States. International Journal of Production Research, 55(21), 6485-6499.
Rüdiger, D., Schön, A., & Dobers, K. (2016). Managing greenhouse gas emissions from warehousing and transshipment with environmental performance indicators. Transportation Research Procedia, 14, 886-895. Web.
Starting a warehouse business: Best practices, industrial storage bins and more. (n. d.). 2020. Web.
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