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Supply Chain Logistics Week 7 Discussion 2

Supply Chain Logistics Week 7 Discussion 2

Q Discuss why contract warehousing is a preferred alternative for many organizations.

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Warehousing can be regarded as integral portion of several operations of the company. They are permitted to store finished goods, supplies, and materials to the sites of manufacturing, retailers and customers prior to the final delivery. Some of the chief reasons for which contract warehousing is considered to be a better alternative are stated below: Flexibility: Companies by which warehouse facilities of their own is operated and owned are restricted to the space amount available with them. Thus, it isn’t possible to accommodate any raises in the required space amount in absence of a significant capital and time investment.