From an operations perspective, a warehouse is more than just bricks and mortar or metal siding; it’s a day-to-day activity that handles zillions of beverage cases. But what does it cost to do that?
Reviewing the historical concepts of warehouses and warehousing operations can result in various interpretations of what it really means.
Why is this important in today’s high-tech automated environment? The review will reveal some significant business cost questions:
What are the current operating functions, conditions and costs associated with a pure or true physical warehouse facility?
What do we mean by functions?
How many and what are the functions performed in beverage facilities?
What are the conditions under which the functions are performed and the actual costs incurred?
Why is it important to dissect the “warehouse is a warehouse” age-old concept and pick out the functions and related costs?
How have the functions changed and what impacts have they had on day-to-day operations?
How have conditions changed and have they been significant enough in frequency and magnitude to re-evaluate functions and needs?
At this point, it becomes important to acknowledge the costs of performing functions under previous operating conditions and to determine whether they have increased or decreased with time. Analysis will determine whether comparisons can even be made.
Read the complete article in Beverage Industry here.