A coherent logistics system presupposes that a strong link should exist between every single element of the company’s production processes (Ismail, 2008). The reasons for combining private and public warehouses into a single system, however, may not be obvious to an outside observer at first. The above-mentioned approach is traditionally used by large companies in order to retain customers and at the same time, become an essential part of the target market.
According to the existing evidence, attracting the target audience to the company and the products that it has to offer is the primary reason for major companies to combine two different types of warehouses (i.e., the private and the public ones) into a single logistical system (Farahani, Rezapour & Kardar, 2011). Indeed, communication with clients is an essential part of any company’s existence, and creating a positive image of entrepreneurship by satisfying the customers’ needs is the key to becoming a success in the market.
While one may aver that the link between the logistics system adopted and the customer satisfaction rates is rather feeble, the two are, in fact, are related closely. The latter hinges on a fast and efficient system of delivery; therefore, it is imperative that devious departments of the company should be included in a single system and that the transportation processes, including the process of information transfer, should be optimized.
Another obvious condition, which private and public warehouses may be combined into a single entity under the necessity for the organization to enter the realm of the go-to-market deserves to be mentioned — traditionally defined as the phase of company development, which includes the design of strategies and tools, allowing the firm to integrate into the target market and connect with its audience (Friedman, 2012).
The creation of a product–supply networks is another reason for most organizations to incorporate private and public warehouses into a single system. This system of integrated services is quite popular among a range of major companies for understandable reasons. First and most obvious, the specified approach creates the premises for a faster transfer of supplies and raw materials, as well as the delivery of the final product to the target customers.
Unless a proper system is established, a company will be incapable of attaining customer satisfaction and creating the environment for proper communication with its suppliers. In other words, for a large company, combining private and public warehouses are the primary condition for efficient performance.
Claiming that the specified process should be part and parcel of any company’s operations, however, will mean making a very big leap. Though it does make sense for an average large company to facilitate a flawless transfer of materials and information between the private and public warehouses, the specifics of the company’s operations must be taken into account before taking the specified step.
The idea of combining private and public warehouses into a single logistics system is not new; it has been implemented for a number of times in order to make the process of data and product transportation impeccable.
As a rule, when speaking of large companies, the concept of private and public warehouses integration into a logistics system predisposes the premises for the outcomes such as customer satisfaction increase, development of a product–supply networks and promoting the company in the target market with the help of the go-to-market approach must be mentioned.
Farahani, R. Z., Rezapour, S. & Kardar, L. (2011). Logistics operations and management: Concepts and models. Waltham, MA: Elsevier.
Friedman, L. (2012). Go to market strategy. New York, NY: Routledge.
Ismail, R. (2008). Logistics management. New Delhi, India: Excel Books India.