In any supply chain environment, effective warehousing and logistics management is key to ensure business success. Owning your own warehouse offers drinks businesses numerous opportunities to streamline operations, reduce costs and improve customer satisfaction. In this blog, we take a look at the benefits of having your own warehouse and how Bevica can give you the features and functionality to keep your stock, logistics and customers visible at all times.
There are two main types of warehouses that the business can own:
- Bonded warehouse – A bonded warehouse is a secure space in which goods are held duty suspended. Excise duty and VAT declarations on these items are deferred until the goods are removed from the bonded warehouse.
- Non-bonded warehouse – A non-bonded, duty paid, or ordinary warehouse, is a secure space where any duties declarations, if applicable, have been made on the items held within the warehouse.
Six benefits of owning your warehouse
Whether your business opts for an excise bonded, duty paid warehouse or both under one roof, there are a number of benefits running your own warehouse can bring to your business.
1. Guarantee of end to end duty compliance
If a business opts to run an excise bonded warehouse, they will have the ability to defer excise duties and VAT until the goods leave their warehouse. However, it is important for this type of warehouse has all processes and procedures in place that can ensure that the business remains HMRC compliant at all times.
2. Operational control and flexibility
Owning your warehouse will give you the freedom to customise the space according to your specific requirements. Whether it’s designing an optimal layout for efficient receipting, cross docking, storage and dispatching, or implementing workflows that best suit your varied product types, the control is in your hands. This autonomy can give you the flexibility to adapt quickly to changing business needs.
3. Improved stock control
Having your own warehouse allows for centralised control of your inventory. This can lead to more accurate stock management, reduced overstock or stockouts, and better forecasting. Your warehouse can be at the centre of your business management systems, integrating seamlessly with inventory, purchasing and sales, leading to real-time end to end visibility, reporting and analysis and improvement decision-making processes.
4. Smarter customer service
Effective warehouse management is a cornerstone of smart customer service. With direct control over your warehousing, you can optimise picking and delivery alongside returns to ensure quick and accurate order fulfilment. This will lead to better customer satisfaction, and as a result, improved business reputation.
5. Cost efficiencies
As well as a vital hub of operations. your warehouse can also be the gateway to both saving and making money for your business. Over time, owning a warehouse can be more cost-effective compared to managing a third-party warehouse as it eliminates ongoing rental costs. There is also the potential for generating additional income if you decide to provide warehousing services to other businesses.
6. Risk mitigation
Owning a warehouse means that you have control over its maintenance and can ensure that the property is kept in optimal condition. Regular upkeep of both the building and the IT systems within it reduces the risk of unexpected disruption due to structural problems or equipment failures, safeguarding your business operations.
How Bevica can help you effectively manage your warehouse
Developed over the past 20 years and powered by Microsoft Dynamics 365 Business Central, Bevica is the leading business management solution for the drinks industry. Whether your warehouse is excise bonded or standard, Bevica has all the WMS and HMRC reporting features you need to keep your stock, logistics and customers visible at all times.
Bevica’s WMS features include:
- Unlimited warehouses, each setup appropriately
- Seamless integration of supply chain and warehouse functionality from inventory forecasting at the outset to efficient picking methods at the end to ensure optimal stock levels are maintained at all times.
- Multiple methods available for receiving stock, picking stock and tracking internal warehouse movements
- Segregation of duties between office and warehouse
- Automatic addition of orders to the warehouse manager’s schedule once order is completed.
In addition, Bevica’s HMRC Excise Duty Reporting features include:
- HMRC Ledger audits every movement in and out of duty suspended status
- Automatic calculation of excise duty
- Ability to create W5/W5D declarations as needed
- Automatic generation of W1 compliant month-end reporting
- Ability to manage other proprietors’ duty requirements (if warehouse space is being sublet).
Find out how Bevica can help your business
To find out more about Bevica’s warehousing and HMRC reporting features, and how it could help modernise and improve your business processes and productivity, book a demo with one of our expert team today.
