What is a central warehouse?
A central warehouse is managed by the retailer or a logistics service provider. This reduces inventories and transport costs and bundles flows of goods. Accordingly, a manufacturer's entire product range is stored in bundles, because the more items that can be stored in one place, the greater the likelihood of centralization. In trade, the use of the central warehouse and a larger purchase quantity, more favorable purchase prices are created.
Advantages of a central warehouse:
- Warehouse management and organization are more effective
- Technical aids are worthwhile
- Minimum inventory is lower
- Optimal warehouse equipment
Disadvantages of a central warehouse:
- Longer transport routes
- Possible waiting times at the goods issue