THE ADVANTAGES OF BRANDS UTILIZING MULTIPLE WAREHOUSES

With over two decades of experience in the supply chain tech industry, Ashvini, a former Indian Navy and McKinsey professional, holds a strong belief in curing the complexities of supply chains. He isan alumnus of ISB and Armed Forces Medical College, Pune.

- Dr. Ashvini Jakhar

As brands continue to grow and expand their operations, one crucial question often arises: When should they consider operating from multiple warehouses? This question becomes increasingly prominent as brands evolve from handling 500 orders a day to managing 1500 orders a day and beyond. The decision to expand to multiple warehouses is significant, influenced by various factors that can shape a brand's long-term success. Let us examine the key considerations that brands should contemplate when making this strategic move:

The Threshold for Expansion

While there is no one-size-fits-all answer, my experience suggests that once a brand reaches around a thousand orders a day, it is a prime opportunity to consider expanding to multiple warehouses. The first crucial decision to consider after this is, how many additional warehouses to establish? Brands must weigh the options carefully, deciding whether to extend operations by just one additional warehouse, or expand across multiple geographic regions, such as east, west, north, and south. The choice depends on various factors that include product diversity, customer distribution, and the potential for business growth in those regions.