Role and Importance of Warehouses in Supply Chain Management

SUPPLY CHAIN MANAGEMENT 1
Supply chain management
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SUPPLY CHAIN MANAGEMENT 2
Executive summary
The report focusses on the movement of starter motor from Bosch Germany to a customer in
New Zealand. The transportation requires the use of various supply chain components to
ensure successful delivery. The report identifies the use of warehouses in the supply of the
motor from Bosch to New Zealand. The company should select the warehouses that facilitate
protection of goods and quick delivery to the market. The report should come up with a
solution and advice that will ensure that the products reach the customer in the right quality
and time. The company acknowledges the challenges faced in international supply, which
calls for the development of an effective and efficient supply chain
The report identifies the types of warehouses available in the supply chain of starter motors
from Bosch to New Zealand. The types of warehouses include such as the private and public
warehouses depending on the nature of ownership. The warehouses also include the bonded
warehouses, which store imported products. The bonded warehouses release the goods only
after the owners show custom clearance documents.
Additionally, the report identifies the various designs of warehouses included in the supply
chain. The warehouses have different designs to accommodate the specific nature of
products. The warehouse designs follow various factors required by the owner and the goods
stored. The warehouses also require to integrate transportation and distribution in the
structure. The report also checks the management and cost efficiency issues faced by the
warehouses.

SUPPLY CHAIN MANAGEMENT 3
Table of Contents
Executive summary.............................................................................................................................1
Introduction.........................................................................................................................................3
Purpose of warehouses........................................................................................................................3
Types of warehouses............................................................................................................................5
Important factors in warehouse design..............................................................................................6
Integration of warehousing and logistics...........................................................................................7
Management issues with running a warehouse.................................................................................8
Factors that impact on cost efficiency of the warehouse...................................................................8
Conclusion............................................................................................................................................9
References..........................................................................................................................................10

SUPPLY CHAIN MANAGEMENT 4
Introduction
Bosch Company is a technological pioneer that has driven forward advances in the
production of starter motors. The company has a wide market share both locally and
internationally, which requires the proper planning to reach the customers in time. The report
focusses on the supply of Bosch starter motors from Germany to New Zealand. The New
Zealand customer requires the product to arrive in the right time, quality, quantity and price.
Therefore, Bosch plans various supply chain functions and components to allow efficiency
and effectiveness in transport. The company applies warehousing accommodate storage of
the bulky motors before delivering to the customers.
The supply chain management includes all the activities from the production of the starter
motors to the delivery to the customers. The activities include such as receiving raw
materials, transportation, identification of suppliers and transportation and distribution to the
market. The products should reach the market at the required time, quality, quantity and place
for the customers to access without challenges. The supply chain activities determine the
market reception of the product since the goods have to reach the market for customers to
buy. The products should efficiently reach the market before the competitors to avoid loss of
market share. However, the report focuses on the role and importance of warehouses in the
supply of starter motors from Bosch Germany to a customer in New Zealand. The bulk nature
of the product requires specially designed warehouses to accommodate the starter motors.
The warehouses should also allow the storage of products at the ports before clearance of
customers since the company engages in the international supply of products.
Purpose of warehouses
Warehouses play various roles in the supply chain management. The warehouses increase
efficiency and effectiveness in the movement of goods from the producers to the customers
(Boag, 2018). One of the roles of warehouses includes the storage of goods in bulk. The
producers store the goods after production awaiting supply to the customers. The customers
also store the goods in warehouses before consumption (Boyer, 2018). Therefore, the
warehouses save the producers and consumers the effort incurred in the safekeeping of
products before consumption. Bosch realizes the storage function done by the warehouses,
which has resulted in the development of storage units for keeping the starter motors before