This ark aims to increase the efficiency and quality of services of the warehouse by revisiting and improving the existing logistics within the warehouse with an aim of replacing the existing warehouse management systems with efficient, reliable and techno-modern systems hence increasing the benefits accrued from the facility (Smirch & Shaman, 2004). Apparently, this is not an independent responsibility of the employees or management of a specific organization as perceived by the majority of managers (OK, 2003). On the contrary, this is an extensive process that involves the management, employees of an entity and cost importantly the clientele.
After all, the main objective behind improving the services in a ware house is to increase customer satisfaction levels (Smirch, Bibb). Therefore, the process of designing a logistic network design is a chronologically encoded design with three basic phases. It is important to note that these phases are executed from a collaborative standpoint where the management of an entity actively involves other important players in the mix such as customers to formulate a fully efficient and functional warehouse (BEMA, 004). Location is the beginning phase of a warehouse logistic network design.
The geographical location of a warehouse has an important responsibility (Gushed & Katz, 2012). The location of a warehouse brings a company closer to the clientele populace meaning the entity is bound to accrue exemplary profits through economies of scale. The success of a warehouse facility is time bound since the general characteristic of the client is impatience (Smirch, AAA). Therefore, for this particular case, the decision is that the warehouse facility is remunerated as an independent warehouse aimed at meeting the specific demand of specific needs of different consumers (Smirch, Bibb).
The decisions on the location of a warehouse should therefore be an interactive encounter involving the important players in a business. Therefore, location decisions should focus on cost reduction via adopting a low-cost network; design a superior network in comparison to their competitors, and provision of excellent service network to the consumers. Cost effectiveness is an important role of designing a network via elimination of non-cost effective middlemen.
The location of a warehouse is apparently a simple and practical way to eradicate probable waste and expenses an entity incurs while using subcontractors to reach their clients (OK, 2003). This is also a prudent management move that increases customer satisfaction since the customer transacts directly with the producers hence eradicating fears of extortion by dishonest and profit-oriented middlemen. Warehouse design on the other hand is the phase which involves collection of important operational data and information about the clientele populace (Smirch, Bibb).
This data is collected and systematically organized marking the start of a journey to develop a warehouse database and establish a baseline. A consumer database is of fundamental importance in a warehouse since it is a reference point bearing all important information on every client. The data is collected to capture Key Performance Indicators (KIP), which can be utilized as metrics to gauge and enhance performance. The data in warehouse database enables an organization to develop functional warehouse structure with specified divisions depending on he nature of clientele information contained in the database (BEMA, 2004).
It is a highly reliable system that helps the management of the organization understand their customers better. For instance, the volume of products a specific client acquires from the warehouse can be easily monitored and generated automatically from the warehouse record if need be to capture consumption. The greatest fear from the clientele populace has been the safety and quality of the products offered by manufacturers. Apparently at the design stage, these risks are mitigated and controlled hence increasing consumer distraction.
Warehouse designing is done following specific internationally acceptable standards (Smirch, AAA). The consumer is also a beneficiary of the international regulations at this point. Not forgetting that the warehouse database reduces the costs incurred in tracking the delivery of products since a product is only authenticated after full inspection and acceptance by the warehouse professional. Meaning the cost and responsibility of delivery is spread across the parties involved in the supply chain. Spreading cost leads to affordability of quality products by the clientele populace (Smirch & Shaman, 2004).
Proactive management is the final phase of a warehouse network design. We are living in a technology world with incessant changes in technology that directly affect the tastes and preferences of the clientele populace (Smirch, Bibb). Warehouse network designs require incessant evaluation to determine their productivity and relevance in comparison to the changes in tastes and preferences of prospective customers to avoid irrelevancy (BEMA, 2004). Therefore, the process of designing a warehouse network design should not be one from a conservative point of management.