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Discuss the advantages and disadvantages of centralised stock storage.

Discuss the advantages and disadvantages of centralised stock storage.

Answers

Lydia
? Stock may be ordered in bulk and economies of scale taken advantage of
? Reduced risk of pilferage as staff may be employed to monitor issues of stock
? Stock is maintained in appropriate conditions which reduces waste
? No space is taken up in departments with storage
? Specialist staff handle stock more efficiently
? Centralised warehouse can be cheaper than using multiple warehouses
? Centralised ensures consistent stock handling procedures
Disadvantages
? More time is taken to access stock – physically moving the stock to department and the paperwork involved
? Additional staff increases costs
? Cost of specialist equipment and storage facilities
? Not reflective of actual stock usage in each division/branch
lydiajane74 answered the question on June 1, 2018 at 15:05

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