FSLs can complement but not always fully replace traditional warehousing. Here’s why:
Complementary Role Not a Complete Replacement: FSLs are often used in conjunction with traditional warehouses to optimize distribution and speed up delivery to specific regions. They are particularly useful for high-demand areas. Traditional centralized warehouses still play a crucial role in managing large inventories and handling bulk shipments. FSLs focus on improving efficiency in specific regions rather than replacing centralized storage altogether.
Strategic Integration: The most effective logistics strategies often integrate both FSLs and traditional warehousing to balance inventory management, shipping efficiency, and cost-effectiveness.