Morlind - 20 July 2009 08:14 PM
Someone mentioned in another thread about setting up fewer relationships using warehouses…but I don’t understand the difference. It seems I’m still having to set up the exact same number of relationships…it just adds another layer in between. Am I doing something wrong?
Here’s what I’m doing:
1. Large store—
a.) I find 10 suppliers for 10 different products; and
b.) I then add the 10 products to my store (using the “add product” drop down).
1. Large warehouse—
a.) I find 10 suppliers for 10 different products; and
b.) I then add the 10 products to my warehouse (using the “add product” drop down).
It doesn’t seem to save me time from adding relationships…it actually adds an entire layer between the factory and store. I understand there’s a benefit of having more space in the warehouse versus the factory, so I’m not saying warehouses aren’t necessary. But I would like to know if I’m doing extra work somehow in setting up my relationships. It seems like double work to add both the supplier AND the product. But I’m not sure my product would be there if I didn’t do both. Help!!
Hi Morlind,
The effect only comes into play where you have more than one supplier for one product and multiple customers
For example: 10 farms supplying 5 products to 15 stores
Not using a warehouse:
Each store has 50 relationships (10 farms x 5 products)
Total relationships for 15 stores - 750
Using a warehouse:
Warehouse has 50 relationships (10 farms x 5 products)
Each store has 5 relationships (5 products x 1 warehouse)
15 Stores x 5 relationships = 75 relationships
Total relationships 75 +50 = 125
Hope this makes sense. If you have a small operation it definitely makes sense to supply directly.
J