Historically, a landlord
would rent out a warehouse and leave the internal design and kitting out to the
tenant. Logistics providers are increasingly looking to allocate their capital
differently, rather than tying up large up-front amounts of working capital
into racking, shelving and design. The high cost of remodelling a warehouse to
compete with other dark stores prompted some retailers to outsource their
warehousing function. Which one of the following options would favour the
outsourcing of the warehousing function?

Question

Answer

When it costs the organisation less to hold stock at
their facilities than keeping items at a leased warehousing facility

Answer

When the organisation’s quality requirements for
storing products are so stringent that other warehousing facilities cannot meet
them

Answer

When there is capacity available at the manufacturing
plant to receive and keep ordered requirements until needed in production

Answer

When the organisation has inadequate facilities or
better investment possibilities exist in having another warehouse facility
store the product

Crowdly

Historically, a landlord would rent out a warehouse and leave the internal desi...

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