Many companies are have recently completed or are considering consolidating their distribution activities.
Reasons a company might consolidate distribution operations include:
Duplicate or excessive inventories across network
Changing market conditions
High costs to operate multiple facilities
Redundancies in network due to acquisition
Ability to leverage automation technology with higher consolidated volumes
Lewis and Michael Warehousing and Logistics offers multiple cities and locations with those cities.
The biggest single advantage of warehouse consolidation is that you only pay for the space and labor that your company uses. If you have a period of time when you warehouse inventory is low, that is not the right economic time for your company to be paying more per unit for both your warehouse facility and your labor to handle the reduced volume.
Conversely, if you have a peak period, your company can avoid the ramp up cost and time needed to response to demand fluctuations.
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