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Warehousing In the EU and the USA
Warehousing in the EU is complex as different companies not only have to think about storing and distributing goods around the country but they have to also think about other countries in the EU. In addition, they have to receive goods that are imported from other countries.
The question of warehousing imported goods has been resolved with the aid of bonded warehouses run by Customs department of each country. Once all the fees and payments are made, the goods can be transported directly from the bonded warehouse to the end customer.
However, the problem arises when goods have to be stored and dispatched to all corners of the EU. Earlier companies only had to concentrate on Western Europe and they have managed to establish warehouses and distribution centers in strategic locations. However, with many Central and Eastern European countries now joining the EU, companies now have to cover larger areas to distribute goods. And, most companies do not want to spend money to shift warehouse locations from Western Europe to Central and Eastern Europe. In addition, quality warehouses are scarce in these new markets and what are available are out-dated and old. That is why in the new logistics market of Central and Eastern Europe new warehousing and distribution facilities are be build. As mentioned earlier, warehouses in the EU are located strategically so that lead time is decreases and all orders are processed as fast as humanly possible. Many of the warehouses in the EU have cross-docking facilities. Basically this means that the goods received are not stored. Rather the moment they are received, the goods are sorted out and then dispatched.
Warehousing in the EU is slowly turning from the storage model to the flow model. However, the flow model is still in its infancy and older warehousing operators are a little tentative about adopting it as it requires high amount of coordination between the warehouse and the entire supply chain, and this is not feasible for all industries.
Warehousing in the USA is not something new. It has been in existence from the colonial times when there were storehouses to store all the goods brought in from England. However, from then to now, warehousing and distribution in the USA has undergone several changes and technological advancement. One of the main causes of change is the expansion in business. Earlier companies used to have their own warehouses and distribution center all in one location and it was from this location goods were dispatched. However, now companies have production all over the world and this has now given way to third-party logistics companies. Warehousing and distribution in the USA done by third-party logistics companies concentrate on moving goods in the most cost efficient manner from the place of manufacture to the distribution center and finally to the end customer. Today warehouses are selected based on their locations and only those locations are selected where the cost of transportation and labor is cheap. This is primarily due to rising cost of gas. In addition, most warehouses are close to ports, which are entry points. However, the location of the warehouses and distribution centers depend on the type of product and end customer. In addition, companies are also taking into account the available market around the location of the warehouse. More and more companies in the US are now selecting warehouses and distribution centers based on sustainable building practices. Companies want buildings that are built according to standards set by environmental and energy agencies while still fulfilling their ultimate aim of being able to stack and store goods. Due to rising land prices, it is envisaged that the US will soon adopt multi-story warehouses and distribution centers like those present in Japan as these use the buildings more efficiently without causing a need to build or lease another warehouse and distribution center in the vicinity.
Answer the questions:
What has happened after the EUs enlarging?
What is the tendency in Central and Eastern Europe?
What is the model of warehousing in the EU?
When did warehousing process begin?
What is the 3-d party logistics in the US?
What is the criterion of selecting warehouse in the USA?
