Articles
Finished Goods Warehouses Attached To Large Manufacturing Centers
August 18, 2010
•Article: Finished Goods Warehouses Attached To Large Manufacturing Centers
By Karma Logistics Inc
Warehouses attached to manufacturing plants tend to have fewer SKU's (200 to 500) and lots of palletized products per sku (1500 pallets for 1 sku). The figures stated in parenthesis are samples. Such pallets are stored directly on the floor. This method is called ‘bulk storage' in the USA and ‘block stack storage" in UK and Europe. It is the cheapest form of storage. Once you have acquired the necessary space, the only additional investment is many tin cans of yellow paint to mark the storage lines. We wish that it was that simple.
Manufacturing variability
Such finished goods warehouses being close to the manufacturing sector, they take all the risks and
variability associated with the manufacturing process. Warehouses that store processed food items may
be subject to weather patterns and agricultural harvesting seasons. If the food crop is produced in the
US, very often there is only one crop during the season. The crop is seeded in April- May and harvested
in Sept-Oct. The warehouse storage is completely linked to this harvesting pattern. The warehouse will
be close to 10-20% of its capacity in July – August. As the harvest comes in, the warehouse capacity will
grow from 30% in August to about 150% in November.
•Article: Finished Goods Warehouses Attached To Large Manufacturing Centers
