The Ultimate Guide to Efficient Warehouse Management: Centralized vs. Decentralized

Drawing from my experience with the game, this guide explores the two primary warehouse systems—Centralized and Decentralized. I'll break down each system to help you understand their strengths and how to use them effectively!

Intro

DISCLAIMER

I am not a native English speaker, so please forgive any grammatical errors or incorrect word choices. I have used AI assistance to help write this guide.

This guide is inspired by From Clutter to Clarity: A Guide to Streamlining Your Warehouse By Heartlance

In this guide, I will explain two types of warehouse chain systems. In my opinion, neither system is inherently "better" than the other, as each has its own strengths and weaknesses. This guide will not delve deeply into how warehouses operate, so I recommend reading From Clutter to Clarity: A Guide to Streamlining Your Warehouse by Heartlance for more detailed information.

Centralized Warehouse

A Centralized Warehouse system involves using dedicated warehouses to store your products. From these warehouses, products are then distributed to your stores based on specific business needs.

In this system, a Main Hub is utilized to manage overlapping products that are required across different business types, such as paper bags or soda cans.

Please take a look at this diagram



If the diagram is unclear, here's a brief explanation: Your imported products are first delivered to the Main Hub. From there, they are distributed to other warehouses dedicated to specific business types. These warehouses then distribute the products to your stores. Each "Main Warehouse" must support up to 16 destinations, which is why an I1 Warehouse is necessary.

It’s important to note that you'll need a logistics manager with 100% primary skill to handle deliveries to 16 locations. Each "Main Warehouse" can therefore support 15 stores and 1 additional warehouse. If you have more than 15 stores of the same type, this additional warehouse serves as a replica of your Main Warehouse, so it’s essential to double your stock in each warehouse. I will explain this process further in another section of this guide.

Example:

Let’s say you need to import 10,000 cheap gifts daily for your gift shop chain. The imported gifts are first stored in the Main Hub. From there, they are sent to the Gift Shop Warehouse, which then distributes them to your individual gift shops.

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Why do you use Main Hub?

A Main Hub is crucial in a Centralized Warehouse system because it allows you to efficiently manage and distribute products that are needed across multiple types of businesses.

For instance, many stores now sell secondary products. Take a florist business, for example: in addition to flowers, it might also sell both cheap and expensive gifts. A Main Hub enables you to store and distribute these secondary products efficiently to multiple types of stores.

Moreover, certain items, like paper bags, are universally required across all types of businesses. Having a centralized Main Hub ensures that these common items are readily available and can be distributed to all of your Main Business type warehouses as needed.

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Pros of a Centralized Warehouse System:

• Stockpile Specific Products: Since each warehouse is dedicated to a specific business type, you can focus on stockpiling essential products for that business. This is particularly useful during events like a Global Backorder, where having a 10-day stock reserve can keep your operations running smoothly. For example, your Gift Shop warehouse won’t waste space on food items, which aren’t relevant to a gift shop.
  
  
• Simplified Inventory Management: With dedicated warehouses, it's easier to track inventory and allocate stock to your stores, especially when managing a large number of stores. This system streamlines the process of monitoring stock levels and ensures that each store gets the products it needs efficiently.

Cons of a Centralized Warehouse System:

• High Initial Costs: Setting up an I1 Warehouse with full pallet shelving is very expensive, with costs around $1.2 million per warehouse using this blueprint. This makes the initial investment quite expensive.
  
  
• Extensive Warehouse Requirements: You'll need to rent most of the available warehouses in the game to support your operations, which adds to the complexity and cost.
  
  
• Time-Consuming Setup: Setting up the system can be time-intensive, as you’ll need to manually drive trucks to each warehouse to assign them.

Decentralized Warehouse

Unlike a Centralized Warehouse system, which focuses on organization and efficiency, a Decentralized Warehouse system is much simpler. In this setup, one warehouse supplies products to all types of stores, regardless of their specific business type.


Building a decentralized system is generally less complex and more affordable. You'll need fewer warehouses to rent and furnish, which significantly reduces costs and setup time.

This system is ideal for players who are just learning the game or those who prefer a more casual approach without the need to manage complex logistics. If you want to enjoy the game without worrying too much about warehouse management, a decentralized system is a great option.

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Pros of a Decentralized Warehouse System:

• Lower Initial Costs: Setting up a decentralized system is cheaper compared to a centralized one. You'll need fewer warehouses and logistic managers, which reduces both rental and staffing expenses.
  
• Easy Setup: This system is straightforward to establish, as it aligns with how the game initially teaches players to use warehouses. It's a more intuitive approach, making it easier for new players to get started without much hassle.

Cons of a Decentralized Warehouse System:

• Harder Inventory Management: With all types of products stored in a single warehouse, managing inventory can become difficult, especially during backorder events that halt the supply of specific products for 10 days. Space constraints may make it harder to stockpile certain items compared to a centralized system.
  
• Harder Tracking: When managing dozens of businesses, it can be tricky to track which warehouses supply which stores. The lack of organization in a decentralized system makes it harder to pinpoint inventory distribution and manage stock effectively.

How much should you buy your stocks?

Understanding Importer Mechanics

When using the importer, it's important to know how the ordering and restocking system functions. If you set an auto restock for 10,000 units and you already have 6,000 units in stock, the game will only order the difference needed to reach 10,000 units—so, in this case, it will order 4,000 units to replenish your stock.

Alternatively, with the one-time purchase option, the importer will fulfill the entire quantity you specify regardless of your current stock levels. If you order 10,000 units using this option, you will receive all 10,000 units in addition to what you already have. This understanding helps manage your inventory more effectively and ensures you can adjust stock levels as needed.

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To estimate the stock needed for your products, first determine the capacity of pallets and storage shelves using this website[biggerambitions.com].

Next, check the "Inventory & Pricing" tab in BizMan for your business.


For example, if a supermarket sells about 8700 units of Ice cream over 7 days, it means approximately 1240 units are sold daily. If you have multiple stores, multiply this number accordingly. Even with just one store, it’s important to order more than the daily sales figure—ideally doubling or tripling it. This helps manage the impact of Backorder Events, which can halt supply for 10 days and ensures you maintain sufficient stock and profitability.

When calculating stock requirements, factor in the variety of store types selling a product. For example, if ice cream is sold across three different store types and your total daily sales amount to 3,000 units, you should consider ordering 6,000 to 10,000 units daily to ensure sufficient supply.

Why Order Extra Stock?

Ordering double the calculated daily sales might seem excessive, but it's a strategic approach to managing inventory effectively. Here’s why:

• No Expiration Dates: Since the game doesn't have expiration dates for products, you can stockpile as much as needed without worrying about spoilage. This allows you to maintain a robust inventory without waste.
  
  
• Easier Stock Duplication: Having a larger stock in your central warehouse simplifies the process of duplicating inventory when opening new warehouses. For example, if a new warehouse needs 3,000 ice creams, having double the amount in the parent warehouse (6,000 units) ensures you can supply both your existing stores and the new ones efficiently.

In the late game, a centralized system offers significant advantages. It efficiently manages the increased demand and complexity associated with multiple stores. Centralized systems streamline inventory management and distribution, ensuring all store types are adequately stocked as your business grows. For instance, if you need a 10-day stock of ice cream and you sell 3,000 units daily, you would need 30,000 units in reserve. This equates to roughly 2 pallet shelves, highlighting the benefit of a centralized system in handling large quantities and simplifying inventory management.

One Time Purchase vs Auto Restock

A one-time purchase can be more profitable in the long run, especially during shortage events that drive up product prices. This option requires more micromanaging but provides stable profits by allowing you to stock up fully before such events.

On the other hand, auto restock simplifies inventory management but can lead to reduced profits during shortage events.

In the late game, if you're not concerned about money and prefer stability in terms of profits, opt for the one-time purchase option to stock up for 30 days and reorder accordingly. If you prefer a more hands-off approach, the auto restock option is also effective, providing convenience even if it means facing potential profit fluctuations during shortages.

Additionally, if you have sufficient stock to cover the duration of a shortage or backorder event while using the one-time purchase option, you can benefit from a significant profit boost. During these events, demand for products increases, allowing you to maximize profits if your stock levels are adequate.

Which systems should you use?

As mentioned earlier, neither warehouse system is inherently "better"—each has its own advantages and drawbacks. To help you decide which system to use:

Opt for a Centralized Warehouse System if:

• You have substantial funds, with more than $10 million in the bank and are making $500K per day.
  
• You are comfortable with micromanaging and handling repetitive tasks.
  
• You enjoy min-maxing every aspect of the game.

A centralized system is also advantageous for long-term save, as it can more easily adapt to new business types and features introduced by the developers.

Choose a Decentralized Warehouse System if:

• You are new to the game and want to learn the mechanics without complexity.
  
• You prefer a simpler, less hands-on approach.
  
• You want a more relaxed gameplay experience, focusing on eat-sleep-repeat and letting the money accumulate over time.

A decentralized system is better suited for casual players, as it simplifies inventory management and allows you to focus on other aspects of the game. By automating many tasks and using fewer, multi-purpose warehouses, you can enjoy a more relaxed gameplay experience while managing other strategic elements.

Conclusions

Thank you for reading my guide. I hope it has provided you with a better understanding of how warehouse systems work in this game.

Ultimately, the choice between a Centralized and Decentralized Warehouse System depends on your play style, financial situation, and how much detail you want to manage. Both systems have their advantages, so choose the one that best suits your gameplay preferences and goals.

This guide was created with the assistance of ChatGPT to ensure clear and comprehensive information.

[Hoshizo]

can you back the diagram pls

[Hoshizo]

very nice thanks

[epicnessen]

the diagram is gone for centralized!

[Purr]

I believe all the importers on the dock are the best suppliers for your business. Currently, the margin of your selling price is so high, that you don't even need to worry about the best price. What you need to watch out for is the import index price which you can see in Marketinsider, the price index will be locked when you sign a contract with the importer, which means you should sign a contract with the importer when the import price index is less than 1.0.

[Gaimkore]

TRhanks was just looking for this actually just posted asking for this

now I need to find a guide for purchasing goods which supplier for best price