3 benefits of having a centrally located depot
Running a business with multiple outlets and distribution centres can be a logistical nightmare when you need to transport your goods. Many businesses have thus opted to create centralised depots for their outlets to ease the logistical loads and increase distribution productivity. So, the question now is:
What are the advantages of centralised depots?
- 1. Reduced costs
Having a centralised depot will allow you to cut costs in several ways:
- You’ll be paying less rent and overheads since you’ll only have one (or a few, depending on your scale) centralised depot.
- Most, if not all, of your goods will be shipped to and from your depot in bulk since you’ll only have one depot. This eliminates the need to ship the goods in smaller units between different depots which ultimately reduces your shipping costs.
- Less depots means less personnel, which means less salaries and less expenditure.
- 2. Better control
Limiting your centralised depots will grant you a level of control over your distribution system.
- Proximity of depot/s with your outlets provides for easier control and oversight of logistical factors such as inventory management.
- The proximity allows for faster deliverance of goods to stores in need of more stock on certain days. A centralised depot also makes it easier to control the transportation of these goods.
- 3. Easier oversight
As mentioned with the better control over your processes, having a centralised depot allows you to keep a closer eye on your day-to-day operations and create more accurate reports for things like your stock and distribution counts.
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