Apparel & Shoes

In the footwear & apparel industry, there are two major types of logistics centers: regional warehouses and central warehouses.

For the regional warehouse model, factories send footwear and apparel to regional warehouses, and then the regional warehouses distribute them to various stores. The central warehouse model is equivalent to sending all the factory apparel to the central warehouse (distribution center), and then the central warehouse (distribution center) dispatches them to stores across the country.

1. Regional Warehouses

Regional warehouses are a traditional concept. In the past, due to the influence of transportation, informatization, and local-related policy factors, the market was divided by regions. Now that enterprises' businesses are constantly growing, the efficiency of distribution centers will become a bottleneck for market expansion. It takes relatively long time to send footwear and apparel from various factories to regional warehouses and then from regional warehouses to various stores. Each regional warehouse is basically independent in each region. For footwear and apparel enterprises, it is relatively difficult for the marketing department to grasp the sales of goods in various regions and stores as well as the popular factors reflected by feedback.

2. Central Warehouses

Central warehouses involve sending footwear and apparel from all factories to the central distribution center and then dispatching them to stores across the country, which facilitates unified management and unified delivery. Relatively speaking, central warehouses make it convenient for the marketing department to grasp the popular factors in various regions and stores, including the color numbers and specifications of apparel, and it is more convenient or flexible to formulate restocking and stocking strategies.

What factors are prompting more and more footwear and apparel enterprises to choose to use automated equipment or automated systems in warehousing nowadays?

a. The increase in land costs.

b. The rise in construction costs as well.

c. The increase in labor costs, the decline in labor stability, and the growing difficulty in recruiting workers. It is very difficult for young people in front-line warehousing to work continuously and for a long time in the same position, which is a significant hidden cost for enterprises.

d. The main purpose of choosing automated warehousing is still to improve the efficiency and accuracy of distribution and to occupy more of the market faster and more promptly.

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