Importance of Warehouse Traffic in Logistics and Manufacturing Industries

Join Study

Warehouse Traffic is the most important part of any industrial and logistics activities, which tells about the growth of industry or corporation. A big warehouse is not as important as a warehouse with very high traffic is highly important for growth of any industry. A big warehouse but not as much traffic shows that many dump commodities and products are kept in that big warehouse, but a high traffic warehouse shows that the products and commodities are supplied very frequently and also produced as per demand of the market. So incoming traffic and outgoing traffic of any warehouse shows real demand of the product and commodities in the market and it also shows a real growth of that industry.

In this post we will discuss warehouse traffic and its importance. First we have to know about the warehouse traffic.

What is Warehouse Traffic:- 

Warehouse traffic is the activity of incoming goods and outgoing goods or commodities in any warehouse. The traffic of any warehouse completely depends upon its frequency of outgoing supply. If outgoing supply is fast and frequent then sure the incoming supply to the warehouse will be fast to maintain the basic store of the product and commodities. A balanced and fast traffic of incoming supply to the warehouse and outgoing supply from the warehouse is the key to success in the market and also shows the growth of the company. Only warehouse traffic is not an important factor for growth of any company but we can say that the warehouse traffic is the important factor for growth of any company. 

High Traffic Warehouse Vs Big Warehouse:- 

High traffic warehouses are those warehouses which have incoming goods to the warehouse and outgoing goods from the warehouse are very fast. It means goods retention time in the warehouse is very less. Incoming goods are supplied out from the warehouse very quickly and fast. Retention time of the goods in high traffic warehouses is very less. Many Times the products supplied to the warehouses are already part of the order of clients and the incoming goods are supplied very quickly to the clients or sometimes supplied directly to the clients after a simple paperwork to the warehouse. High traffic warehouses are ideal and also a reflection of the demand of your product in the market.

Each and every manufacturing company is thinking that they have high traffic in their warehouse. Companies are working on it through generating demand on the market. 

High traffic warehouse is also part of Lean Logistics. In lean logistics, we are trying to remove the waste from logistics activities of any manufacturing and logistics industries. A low traffic warehouse shows demand for the products is very less in the market and if you have a big warehouse with less traffic means you have many dumped products, goods and commodities in your warehouse. Duped products are the biggest waste for any industry. The industry has to pay and invest for manufacturing for the products and also have to invest for warehousing of the products and commodities. The cost of warehousing for the product will increase day by day if products are kept in the warehouse for a long time then the cost of the product will be increased and unable to recover its cost from market due to very high competition in the sales and marketing of products and commodities. So to avoid costing of product high it is important to maintain a high traffic in the warehouse. 

Many times we have seen that outgoing supply from the warehouse to the clients is fast and quick but incoming supply to the warehouse is slow. This type of activity in warehouses is also not very good for industries. This type of traffic will finally kill your product in the market. After some time you will see that you are unable to fulfill the demand of your product in the market. If you will be unable to maintain the supply of your product as per the demand, your target market will shift to the same product of other companies. It will become a biggest disaster for your product and commodities in the market. 

So maintaining high traffic in both incoming and outgoing supply to and from the warehouse is good for market, finance and health of any industries, product and commodities. 

Big warehouse shows the volumes and reputation of any product, commodities and industries. But the traffic of that big warehouse shows the real reputation. Big warehouse with less traffic is not good for business and the market. But sometimes the big warehouses are good for dumping seasonal products. You can understand this seasonal dumping by this example, that if you are the wholesaler or supplier of woolen clothes in the Indian market, then you have to purchase or import the woolen clothes at a very less price well in advance to supply the woolen clothes in the Indian market in winter season. At that time you will see that the traffic of outgoing supply will increase in the winter and empty the stocks of woolen clothes which you will dump in summer season for supply in winter. 

So many times a big warehouse is a success story for your future market. But overall traffic will have to be fast in the long term. This long term traffic will help you to earn more money from your warehouse tactics and marketing needs. 

If you have a big warehouse with very high traffic of incoming and outgoing supplies, then it is the ideal for your product, commodities and industry. A big warehouse shows your business volume and very fast and high traffic shows the demand of your product in the market and your ability to meet the demand of your market.

So we can arrange the types of warehouse for its success in business as follows.
  • Big warehouse with high traffic:- The Best
  • Small or Medium warehouse with high traffic:- Very Good
  • Big warehouse with seasonal traffic:- Good
  • Small or Medium warehouse with seasonal traffic:- Good/ Bad.
  • Small or Medium warehouse with less traffic:- Bad
  • Big warehouse with less traffic:- Very Bad
Hence we can say that the traffic is an important part of any warehouse. Maybe it is all time high traffic or strategic seasonal traffic. But high traffic in any warehouse is the key to success in the market and business. 

The Ideal Traffic for a Warehouse:-

It is simple to calculate the traffic of your warehouse for any product or commodities. You have to calculate outgoing supplies, incoming supplies and stored products and commodities in the warehouse. 

for any ideal warehouse traffic it is important that per hour outgoing supplies from warehouse are equal to per hour incoming supplies to the warehouse. also it important to maintain a proper stock of  the product in the warehouse is half of its outgoing supplies of a week, then you can say that it is the best and ideal traffic for your warehouse. But it is very tough to maintain this ratio. So To make this traffic as a base you have to maintain this condition for your product, warehouse and supply nature. 

If you have any questions regarding the traffic of the warehouse please write in the comment section of this blog post. 
Join Study Classroom