What is warehousing logistics and what are its functions?

by Advance Real Estate 4 de May, 2022 783 Views

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The warehousing logistics value is indisputable, as it made it possible for different industries to give continuity in their operations and meet the high demand for purchase orders generated from 2020. Year in which e-commerce invoiced 316 billion Mexican pesos, 81% more than 2019¹, according to AMVO data.

On this occasion, we will review the work of this logistics department, its objectives, functions, and trends.

Goals and relevance of warehouse logistics

Establish control over stock rotation.
Guarantee the accessibility of merchandise and the lowest number of transfers.
Ensure that space is used to its maximum capacity, considering height and surface area.
Control inventories and keep a record of the product’s condition.

What is warehousing logistics, and how is it carried out?

It is about the stage in which everything related to handling goods before they are delivered is managed and planned.

This includes the placement, arrangement, and classification to ensure that they remain in optimal conditions and that warehouse search times are optimized, contributing to greater efficiency in production processes.

Although there are different types of warehousing, in this context, logistics is mainly related to:

Update inventories that allow precise control of the goods, raw materials, or products to be stored.
Record storage, this way it is sought to accurately specify the exact storage area or sections for better use of the operative processes.
Plan the use of space by analyzing the space available to arrange the goods in the most appropriate place and access them effectively, making them easy to transport.
Establish transportation methods, whether by automated vehicles or manual ones. This task requires close attention to avoid shrinkage, delays, or accidents.

Types of warehousing: logistics for different industry needs

Raw materials are materials that have not been previously used. They should be located as close as possible to the production plants.
Intermediate products are those that have received some treatment as part of the production process. They are usually stored in the factory because they are required at the time.
Accessories are products that complement production. They must be stored in proper spaces.
Finished products; for them is necessary to ensure an area with ideal conditions for the type of product and that it contributes to high inventory turnover and availability.
Spare parts are items for repair or replacement. The warehouse that stores them should be located close to the production plant.

Warehousing and logistics in Mexico

By 2022, some of the most important warehousing and logistics trends² in Mexico are expected to be:

On-Demand logistics services: through this business model, companies will be able to provide logistics services according to the needs on-demand they may have at any given time.
Automated warehouses: companies will eliminate human error and constantly optimize their processes by using robots and systems that take care of delicate, tedious, or physically demanding tasks.
Data analysis: evaluating and interpreting data through technological innovations such as Machine Learning, will enable better decision-making in a company’s operations and processes.

At Advance Real Estate, we have spaces available to carry out your warehousing logistic efficiently and line up with the new sector trends. Contact us and find the ideal solution for your operation.

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About us

Advance Real Estate

Advance is a leading company in the acquisition, leasing and operation of industrial and logistics assets, with presence in 12 cities within Mexico and a portfolio of 11.5 million sf of industrial space.

informes@advance-realestate.com

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