A central warehouse is a central facility within a logistics or distribution network in which goods are collected, stored and prepared for further transport. It serves as a main warehouse from which products or materials are shipped to various destinations, such as regional warehouses, retail stores or directly to end customers. The main functions of a central warehouse include storing large quantities of products, consolidating shipments, picking and packaging orders, and managing inventory. By centralizing inventory, companies can increase efficiency, reduce costs, and shorten delivery times.
- Cost efficiency
- Vimproved inventory management
- Optimized logistics
- Economies of scale
- Improved customer service
- Simplified return processes
- Susceptibility to disturbances
- Higher transportation costs for remote destinations
- Slower delivery times for specific regions
- Risk of over-centralization
- loss of flexibility
- High initial investments
