KLF Central Warehouse

KLF Central Warehouse
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KLF Central Warehouse
The presence of many warehouses in different regions has made the delivery process very long, and hence it takes a lot of time for a product to reach a client who has ordered it. Therefore, it is wise for the KLF Electronics to adopt a central warehouse where all the orders can be made. The new strategy needs improved logistics where the company should have many vehicles which can deliver goods to various cities near the central point. Also, the management needs to organize with various airlines that travel to different states so that they can deliver the products near to the clients within the stipulated time.
The management needs to collect data on the number of client orders that are made from various states so that they can know the exact mode of transportation of the goods could be applied. For instance, it would be unrealistic for the firm to transport minimal products to a particular city. It is recommended that the company should also subcontract other transportation companies for the little number of orders made by the clients.
The strategy will be very advantageous for the firm since it will have to be more competitive in the market. It will ensure that the goods are delivered within a short period. Also, the central warehouse will help the management to note the areas that have a high demand for the products and hence the method of transportation will be improved (Rushton, Croucher, & Baker, 2014).

Furthermore, the firm will save the cost that it could have used to maintain the other five warehouses. However, the strategy has some disadvantages since it needs improved management at the central point so that the orders of the clients are noted and goods delivered within the deadlines.
Reference
Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.