Divisional Warehouse Structure

In any warehouse structure, there are weaknesses and strengths, and each company must choose which structure best suits their layout and inventory process. Structure usually falls into one of three possible forms: divisional, functional or a combination of the two, often referred to as a matrix. This article will cover the first type: the Divisional Structure.

Divisional structure separates the inventory workers on the basis of the areas in which they function: examples would be geographical (Store 1, North-West Region, etc.) or customer relationship (sales, returns, repairs, etc.) or product (electronics, fixtures, projects, etc.). Each division has its own responsibility and management including concerns such as maintenance, finance, warehouse, marketing, and so on. Changes that occur at the divisional level are flexible and allow for issues to be resolved quickly due to the decentralized nature of the structure.

While one warehouse for each division allows for each to self-manage, implement divisional improvements and separate analyses within each division, the same processes being conducted in each separate division can mean, and often means, that labor and resource consumption is being duplicated in each division. Another shortcoming of the divisional structure is that information exchange often suffers when someone working in sales in Division One, for example, may not be communicating or enacting any forms of standardized practice like the ones being used by someone working in sales in Division Two. One division may generate greater profits due to their in-house special promotions while another division may not be.

If your business best suits the Divisional Structure in any of its forms, use of SIMMS 2012 Inventory Management software minimizes the weaknesses by universal usage of networked transactions and stock coordination. Thus, companies can retain their divisional processes while drawing from a more centralized command of both physical stock and information available to all divisions.

For more information on how SIMMS 2012 can help you with your divisional structure goals, visit www.simmssoftware.com or email sales@kcsi.ca.

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