How Many Warehouses ❓
Maybe you have too many, or not enough? How do you know? … ❎
Many organisations have the wrong number of warehouses, and that just leads to additional costs Often the distribution network has grew up over time, maybe through expansion or acquisition, and it’s just not the right ‚shape’ anymore.
How do you know❔
💡 You’ll know because you’ll see a rising trend in distribution costs, and inventory levels, and perhaps a downward trend in customer service performance.
BUT 🤔
We need to appreciate there is no RIGHT number of warehouses in a network.
That’s because the shape and structure of the network is almost totally driven by your customer service offer. ❕
📣 If you’d like me to explain more about the dynamics of Distribution networks, and some of the cost saving techniques, just comment below and I’ll post some more details on the topic.
Please comment with your thoughts, suggestions and any questions
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