Wisdom for Warehousing | The Optimal Role of Warehousing in Supply Chains and Business

Warehousing & Value-Added Services Following from the mass customization movement, the likelihood that an order will require customization in some form is increasing exponentially. The ability to execute the requisite value-added services such as custom labeling, special packaging, monogramming, kitting, coloring, and pricing is and will continue to be a competitive supply chain differentiator. Warehouses are uniquely equipped with the workforce and equipment to execute these logistics value-added services. As the physical facility closest to the customer location, a warehouse is also a natural place to customize, kit, assemble, or countrify products in accordance with the principle of postponement—minimizing overall inventory investments throughout a logistics network by delaying the customization of products to the latest moment. In our RightChain™ Inventory implementation with NuSkin we found that storing large batches of un-countrified inventory and countrifying on demand was a dominant supply chain strategy.

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