The Concept and Utilities of Mother warehouse in Supply Chain & Logistics
Sumit Ganguly
Manager Supply Chain Management- Eastern Zone, India
Address: 49, Regent Place, Tollygunge, Kolkata, PIN: 700040
Organization: Patanjali Foods Limited (Formerly Known as Ruchi Soya Industries Ltd)
Introduction:
In the world of modern business, efficient supply chain management is the cornerstone of success. Every stage of the supply chain, from production to delivery, plays a vital role in ensuring products reach consumers in a timely and cost-effective manner. Warehousing plays a pivotal role in the supply chain, providing a space for storage, consolidation, and distribution of goods. It serves as a strategic node between production and distribution, providing storage facilities for inventory and offering services such as distribution, transportation and order fulfilment by contributing significantly to the overall success of businesses.
Concept and Definition:
The Indian warehousing industry has witnessed remarkable growth due to various factors such as e-commerce expansion, rapid urbanization, the expansion of organized retail. Efficient integrated warehouse management is crucial for businesses operating in a competitive marketplace. An integrated warehousing solutions network brings together various aspects of logistics and supply chain management under one comprehensive system. It enables businesses to streamline their operations, improve customer service, and drive cost savings.
In this aspect concept of Mother warehouse or technically a Mother Hub acts as an aggregation and sortation centre for moving shipments from warehouse to delivery points across the network. It typically denotes a centralized hub that fulfil the demands of smaller hubs and retail markets ultimately helps to build an economic logistics system.
In current GST( Goods and Service Tax) regime also, it has been a successful implementation of material movement without any barriers in case of intra and interstate. In FMCG sector utility of mother hub is widely accepted due reason for single accountability access as well as reduction of various costs. Mother hub facilitates a single domain of inventory management and logistics support to all other smaller and regional distribution centres or direct deliveries. Many organized companies and organization now using such facility to minimize the unnecessary costs and develop new system to fulfil smaller to huge market demand.
