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The major advantage is it cuts down delivery times to the end customers.
So let's say we make clothes and sell them all over the US. If we have one warehouse in New Jersey, it will take a week for ground shipments to reach California and California stores will not buy our clothes. If we put a warehouse within a day's drive of any customer, a store can start running low on clothes on Tuesday, put in an Electronic Data Interchange message that evening and have more clothes to sell by the weekend.
The obvious DISadvantage of this is the need for a lot of warehouses.
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∙ 11y ago
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no
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