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Decentralised storage
A central warehouse is usually located directly on the premises of the manufacturing company or in its vicinity, from where material goods are shipped.
In decentralised storage, on the other hand, a company stores its goods at various locations. These are usually located in the area or country in which the company is primarily active. In this context, production warehouses are usually found near the production site and warehouses near the customer.
Many companies opt for decentralised storage in order to increase their profitability and optimise work processes. Various advantages play a role here:
- shorter delivery times due to proximity to the customer
- shorter transport routes and at the same time lower transport costs and emissions
- shorter sales routes by locating sites close to airports, freight stations, etc.
- minimisation of transport risks due to shorter distances.
On the other hand, however, there are also various disadvantages, including high investment and fixed costs, since several warehouses are operated and thus, for example, more staff are needed. In addition, there is the risk of misallocation, i.e. goods are stored at the wrong location, which reduces the availability of the products. Furthermore, a functioning IT system is necessary for a proper flow of information between the warehouses. Its failure could lead to incorrect warehousing or deliveries.
