The crucial factors of efficient warehousing

A company’s warehousing plan must address the questions of whether the right goods are being stored and how high their turnover ratio is. In order to systematically evaluate warehouse efficiency, factors that include warehousing costs, inventory costs and management costs are considered. Through the use of key indicators, they become comparable.

Key indicators in warehousing

To determine the performance efficiency of warehousing, it is useful to set up a performance measurement system that links warehousing costs to efficiency. Warehousing costs consist of the inventory costs and the merchandise planning costs. The costs of this subsystem are counterbalanced by the availability of goods in the desired quality and at a designated time [1].

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