Considering Warehouse as Profit Center
Warehouses have come of age. So have the technologies that run them.
Not so long back, warehouses were treated as cost centres, always taking the back seat when it came to formulating business strategies for revenue generation. But times are changing.
This leads to my next thought. How do we look at warehosues as profit centers? what does it it takes to leverage a warehouse to generate revenue?
One sure way whould be to bring down operational costs by adopting to best practices, optimizations techniques, bring in efficient material handling systems and so on. All this needs to be thought of in granularity, i.e., whether its feasible or not, how to implement them, cost reductions it will bring in, impact to revenue, etc.
Coming to the Warehouse mangement system available in the market today; are they geared up to analyse and bring forward revenue generation aspects on warehouse operations over a period of time? Is this visibility a part and parcel of such systems today? Are customers keen on looking at such figures?
This leads to my next blog on the various aspects that lead to income generation from warehousing operations -