CENTRALISED STORAGE - Advantages and disadvantages table in A Level and IB Business Management

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Created by: emily_284
Created on: 29-12-21 15:58

CENTRALISED STORAGE

Advantages

Specialist staff are employed to maintain inventory, which improves speed of inventory handling and security.
It may be cheaper to store inventory in one large warehouse than the total cost of many smaller on site storerooms.
Easier for suppliers to deliver stock as centralised warehouses are often located near infrastructure such as motorways.

Disadvantages

Inventory has to be delivered to each division or department, causing delays.
Specialist staff need to be employed to maintain inventory, increasing wage costs.
Specialist equipment needs to be purchased and maintained.

Evaluation

Centralised Storage involves storing inventory in one central location in a large, purpose-built warehouse.

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