The reason for being of every store lies in the fact that man must keep what he produces, to consume it with specific dosage. And this is precisely the ultimate (or first) reason for the existence. A man delivers goods in a particular place in time but needs to consume them regularly, every day.
The need to improve productivity comes from the world of competition between companies. When a market remains stable, companies can survive without managing their assets efficiently, that is, they can waste resources or underutilize them since few competitors that offer better products at affordable prices to customers. But the growing national and international market instability, in addition to the increasing number of multinational companies that are making their way into internal and external markets, of which the Dominican Republic is no exception, also constitute opportunities and threats for companies; they have to be more productive to stay competitive.
In the study of modern management, the storage units are a means to achieve potential savings and to increase company profits.
The management of inventories has reached the peak of the problems of business administration because it is a fundamental component of productivity. In highly competitive markets, companies work with increasingly lower inventories and with increasingly higher levels of services.
The objective of this study is to assess the essential aspects to be considered in order to develop an adequate storage logistics for a company, in order to understand the crucial importance that this represents in the corporate culture of the company and its search for excellence, in a to be more competitive within the market, both nationally and internationally.
For this, we will develop several essential aspects in the storage units Maywood such as functions, classifications, principles, warehouse management system, areas involved, importance, as well as the inventory, its business importance, ending with subcontracting.
Companies in these modern times are getting ready to be competitive, efficient and open to changes that help optimize management systems (storage, inventories, etc.), as it is vital for the proper functioning of warehouses in the short, medium-long term.
Definitions of terms
- To understand the topics below the basic terminology related to them is indicated:
- FEFO: from English, first expired, first out, that is first to terminate.
- Early to leave. Used in the pharmaceutical industry.
- FIFO: from English, first in, first out, that is, first to enter, first to exit.
- Warehouse Management: warehouse management concerns everything related to physical flows of items in storage: physical storage addresses, order preparation, etc.
- Stock Management: existence management defines what must be stored and values it.
Logistics: broad concept applied to all the distribution phases of the products, including all the links of the distribution chain, required to get the product to the final customer. The logistics (term of military origin) is responsible for optimizing freight, ensuring that products are well transported; calculate wait times and discharge, management and storage control. The ultimate goal of logistics is to reduce inventory levels and optimize the operation of the entire distribution chain.
National Merchandise: the one produced or manufactured in the country with national or nationalized raw materials.
Samples: are those goods that are solely intended to demonstrate their characteristics and that lack commercial value for them.