Posted in Operations and Supply Chain Terms, Total Reads: 365
Definition: Market Positioned Warehouse
Warehouse positioned in a strategic location generally near a high demand region to cater to the customer in manner which enable a short delivery time (same day or next day delivery) along with maximum inbound transportation economies
Market Positioned warehouse can be utilized as a Distribution center for other warehouses or can be used to provide direct delivery to customers. It achieves reduction in the cost component by consolidating demand from various customers thereby facilitating a bulk order from a manufacturer. This thereby reduces cost as a large cargo can be shipped over long distance at a reduced cost.
Benefits of Market Positioned Warehouse
1. Quick Delivery Service can be provided to customer and last mile delivery cost will be less.
2. In case of return due to damaged or any other reason the cost associated with reverse logistics will be less.