Search
Close this search box.
Reading 9 minutes

What Is Storage Logistics? The Importance of Proper Management

storage logistics

Storage logistics is a critical factor in the success of any business. It involves managing inventory, warehousing, transportation and distribution to ensure that products are delivered on time and within budget. 

Improper storage logistics can lead to delays in product delivery, increases in operational costs, and decreases in customer satisfaction. 

The complexity of modern supply chain systems makes it essential for companies to have an effective storage logistics management system in place to achieve their desired goals and objectives. 

In this article we’ll be exploring what storage logistics is, how it works and why proper management is so important for businesses today.

Benefits of storage logistics system

Real-time visibility of inventory

Real-time visibility of inventory in a storage logistics system is essential for businesses to meet customer needs and remain competitive. 

By enabling companies to see their entire supply chain, they can pinpoint potential problems and take action to improve efficiency and reduce costs. This in turn increases customer satisfaction, allowing companies to remain profitable over the long term. 

Real-time visibility of inventory in a storage logistics system can help companies anticipate customer demand, ensure they have the right products available when customers need them and reduce time spent on manual processes. 

Additionally, businesses can use real-time visibility to identify areas that need additional resources or streamline efforts to reduce bottlenecks and improve overall performance. 

Visibility of supply chain

The visibility of a storage logistics system is essential to ensure efficient supply chain operations. 

By leveraging the power of technology and data, businesses can gain insight into the movement of their goods in real-time. This allows them to track and monitor inventory levels, helping them make informed decisions about their stock management and transportation needs. 

Additionally, it enables businesses to reduce the risk of theft and damage, while improving customer service by delivering goods on time. 

Furthermore, many businesses are using big data analytics to gain an in-depth understanding of their supply chain network, allowing them to optimize their operations for maximum efficiency.

Reduce returns

Storage logistics systems are becoming an increasingly popular solution for retailers and distributors looking to reduce costly returns. 

By using reverse logistics, businesses can better manage their inventory, track shipments, and identify potential issues before they cause costly delays or return costs. This helps to ensure that the items being shipped are reaching the intended destination in perfect condition and on time. 

Additionally, a storage logistics system can provide valuable insights into customer trends and purchasing habits that can help businesses make decisions about product selection and pricing. 

Increase space 

The latest advancements in storage logistics systems provide businesses with the ability to increase space and improve efficiency. 

By integrating modern technologies such as robotic automation, computerized inventory tracking, and automated order fulfillment, businesses can maximize their warehouse’s potential. 

This increased efficiency leads to more organized operations and better use of resources, allowing for cost savings for the business overall. Additionally, businesses can take advantage of the latest advancements in storage logistics systems to more effectively manage their inventory levels and reduce overall costs associated with storing and distributing goods. 

Reduce costs

An effective storage logistics system can help to reduce costs significantly. With this system in place, companies have better visibility over their inventory and can ensure that the right amounts of supplies are available at the right time.

Furthermore, they can determine where their resources should be allocated most efficiently to optimize production and delivery processes. Additionally, with an effective system in place, companies can effectively manage their stock levels and ensure that they are not over-stocking or understocking. 

This will help to reduce costs associated with purchasing too much inventory or having to expedite orders due to a lack of resources.

Improved customer service

Storage logistics systems are designed to help streamline storage processes and improve customer service. 

By automating many of the complex tasks associated with storing and retrieving inventory, a storage logistics system can make it easier for businesses to fulfill customer orders quickly and efficiently. 

The system also helps businesses track their inventory more accurately, ensuring that customers always get the right item in the right quantity at the right time. 

storage logistics

What to consider when planning storage logistics

Space available

When planning storage logistics, it is essential to consider the space available. Even if you have a large warehouse or another storage facility, you still need to make sure that there is enough room for all of your items and that they can be stored in an organized manner. 

This means taking into account how much space each item needs, any special shelving or racks that need to be installed, the size and shape of the items, and any other factors that might affect storage capacity. 

Additionally, it is important to calculate how much space you have for each type of item and ensure there is enough room for them all.

Budget

When organizing storage logistics, it is important to consider the budget to keep costs down and maximize efficiency. Planning can help you determine the most cost-effective way to store your items. 

Consider all of the available options – such as third party logistics or renting a self-storage unit – and explore what will give you the best bang for your buck. 

Factor in the cost of transport to and from the storage location, as well as any additional costs of storing the items, such as packing materials or insurance. The key is to ensure that you are getting good value while still maintaining the quality of your stored goods. 

Capacity of staff

When planning storage logistics, it’s important to consider the capacity of staff. This is especially true if a business wants to make sure that they have enough staff available to handle any potential customer demand. 

Knowing how many staff members are needed can help businesses plan for the right number of storage facilities and personnel needed to maintain efficient operations. 

Additionally, having an adequate number of staff on hand can help ensure that customer orders are accurately and promptly filled.

Logistics storage by location

Indoor storage

Indoor logistics storage by location is a great way to maximize efficiency and streamline the warehouse workflow. By having items sorted according to their physical locations, such as aisle or shelf number, staff can quickly find items and get them out for shipping or restocking. 

This method also helps reduce clutter in the warehouse, making it easier to maintain an organized environment. Additionally, it can help staff keep track of inventory more accurately, as they know exactly where each item should be located. 

With the right software in place, indoor logistics storage by location ensures that items are always tracked and updated properly so that staff don’t have to worry about running out of stock or ordering too much at a time. It also allows for easy restocking of items and quick processing of orders. 

All in all, it’s an efficient way to manage the warehouse and keep things running smoothly. 

Outdoor storage

Outdoor Logistics storage is a great way to store items and materials outdoors. This type of storage allows for easy access and organization, making it ideal for construction sites and other industrial environments. 

The location of these outdoor logistics storages can vary greatly depending on the company’s needs. In some cases, they may be located in a central area, such as in a large open lot or yard. 

In other cases, they may be located at multiple locations to allow for easier transportation of materials from one place to another. Outdoor Logistics storage is also great for storing larger items and materials that cannot fit into indoor spaces, such as large machinery or construction equipment.

storage logistics

Logistics storage by function

Centralized Storage

Centralized logistics storage is an efficient way to store and manage inventory. It involves consolidating all of the various types of materials and supplies needed for a business into one centralized location. 

Having everything in one place makes it easier to track, monitor, and control the usage of resources. This can also help increase efficiency by reducing the need to transport goods between multiple locations. 

Additionally, it can help reduce costs associated with storing and managing inventory as well as improve customer service. For example, if a company has all of its inventory in one place, customers can have quicker access to needed items without having to wait for them to be shipped from multiple locations.

Regional Storage

Regional Logistics Storage is an important component of any supply chain management system. It provides a place for customers to store their products and materials between the point of origin, distribution centers, and the final destination. 

The storage facility must be equipped with proper security measures and have an organized layout to ensure items are stored safely, efficiently, and in the correct order. In addition, employees must be trained in the proper use of the facility to ensure maximum efficiency and accuracy when handling materials. 

Regional Logistics Storage also provides a central location for quick access to items, allowing customers to easily retrieve or ship products as needed.

Storage in Transit

In transit, logistics storage provides a secure and reliable location to store goods while they are en route. Utilizing this type of storage can help save time, and money and even reduce damages related to transport. 

This is because the goods will be stored in a facility that is designed specifically with logistics-related activities in mind. The staff at these facilities are highly trained and knowledgeable about the handling of goods, ensuring that each item is stored safely and securely. 

Additionally, these facilities are equipped with climate control systems and other safety measures to keep items safe from environmental damage. Ultimately, in-transit Logistics storage helps ensure that your goods arrive safely and on time. 

Temporary Storage

Temporary Logistics Storage offers businesses a reliable and cost-effective way to store goods, equipment and materials in short- or long-term storage solutions. 

From small items to large, bulky freight, Temporary Logistics Storage can accommodate any size of shipment, ensuring that your products are safe and secure at all times. 

Our experienced staff will handle the loading, unloading and storage of your items with care, ensuring that they stay in the best condition possible. Additionally, we offer a wide range of services to simplify your shipping process and keep costs as low as possible.

storage logistics

Storage logistics costs to be prepared for

Storage space 

Storage logistics costs can vary widely depending on a variety of factors. If you are considering renting or buying storage space, the size and location of the unit will determine the cost. Renting storage units is often cheaper than purchasing one outright, but this depends on the specific situation. 

Additionally, there may be other associated costs such as access fees, insurance fees, and more. It’s important to do your research before deciding on the best storage solution for you. 

Additionally, considering the usage of additional solutions such as mobile storage containers or self-storage can help save money in the long run. Making sure to include all associated costs into your budget before making any agreements is essential to ensure that you are not surprised with additional charges later down the line.

Installation

Storage logistics costs vary depending on the type and size of storage units you require. Installation costs can be higher if you need to hire personnel to assemble or install the unit, while upkeep costs are associated with regular maintenance and repairs. 

It is important to plan and budget for these expenses to ensure that your storage system runs efficiently and effectively. In addition, you may also need to factor in the cost of additional security measures such as locks and alarms. 

By taking the time to prepare for these costs, you will be better equipped to deal with any unexpected expenses that may arise. Ultimately, this will help you save money in the long run. 

Handling and maintaining inventory

When it comes to storage logistics, there are a few costs that need to be taken into consideration. 

Firstly, you will need to factor in the cost of storing your inventory. This includes space rental fees and any additional maintenance costs associated with ensuring the inventory remains secure and in optimal condition. 

Secondly, you will need to consider the cost of handling your inventory. This includes shipping fees, packaging costs, and any other fees associated with moving products from one location to another. 

Finally, you will need to factor in the cost of maintaining your inventory. This includes regular stock checks, tracking systems for monitoring levels, and any other necessary steps to ensure that your inventory is accurately accounted for. 

Delivery management software 

Delivery management software such as Detrack is designed to help businesses reduce their storage and logistics costs. By automating the delivery process, businesses can track orders and plan efficient routes, ensuring that costs are kept low and deliveries arrive on time. 

The software also allows for tasks such as route optimization, inventory tracking and customer notifications. This helps businesses stay organized and be more efficient when it comes to storage and logistics, leading to lower costs over time. 

Furthermore, Detrack integrates with a variety of third-party tools and services, giving businesses the flexibility they need to create efficient supply chains. 

Gain real time visibility of your logistics with Detrack

Detrack provides real-time visibility of your logistics, so you can keep track of your shipments at any time. With Detrack, you can easily monitor the location and status of each shipment, as well as get up-to-date information about delivery times, estimated arrival times and more. 

Furthermore, with Detrack’s powerful analytics and reporting, you can easily manage and optimize your delivery operations. 

Detrack also ensures that your shipments are safe and secure by providing features such as on-demand signature capture, barcode scanning, proof of delivery photos and more. With Detrack, you can be sure that all your deliveries are delivered safely and on time. 

ARTICLE WRITTEN BY:

Stay ahead of your competition with a handy email straight to your inbox with the latest posts, updates and industry insights.

Detrack is smart delivery management software that helps improve your business and reduce costs.

Delivery Dynamics:
Your Detrack Insider!

Subscribe to our newsletter to get tips delivered straight to your inbox