What are the disadvantages of decentralized warehouse?

Answer 1

Decentralized warehouses can lead to higher operational costs due to increased transportation expenses, as products may need to be shipped from multiple locations to reach customers efficiently. Additionally, managing inventory across several sites can complicate stock control and forecasting, potentially resulting in overstock or stockouts. Furthermore, communication and coordination among multiple warehouses may be less efficient, leading to potential delays and inconsistencies in service levels. Lastly, the initial setup and ongoing management of multiple facilities can strain resources and require more complex logistics planning.