Logistics is about moving materials

Warehouse is the location to or from which the inventory is transported. Warehouses are the key
driver of supply chain performance in terms of responsiveness and efficiency. Before deciding
the location of Warehouses we must consider the following points:

 Location of our stores

 Rent of the location

 Format of our retailing

Now a day’s warehouse is treated as switching facilities rather than storage place and companies
try to move stock from the warehouse as soon as possible to reduce the inventory handling cost,
for higher inventory turnover and for shorter cycle time It is a major cost center, many customer
problem are the direct result of improper warehousing management.

Logistics is about moving materials, information and funds from one business to another or
from a business to the consumer. It is a vital part of the business economic system and is a
major global economic activity. In fact 10-15 per cent of product costs are logistics related.
Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is
estimated between 9 and 20 per cent of its GDP. Every company dreams of achieving the
seven R's - delivering the right product in the right quantity and the right condition, at the
right place, at the right time, for the right customer at the right cost. Effective logistics
management alone can make this possible.