Written by Marijn Overvest | Reviewed by Sjoerd Goedhart
Fact Checked by Ruud Emonds | Our editorial policy
Warehouse Management — Everything About Supply Chain
Key take-aways
- Warehouse management involves overseeing all warehouse activity, such as tracking inventory, saving costs, and ensuring smooth operations.
- Effective warehouse management ensures accurate inventory control, streamlines order fulfillment, reduce costs, and enhance efficiency.
- Warehouse management processes include receiving, put-away, storage, picking, packing, and shipping,
Warehouse management encompasses all the processes and principles involved in running the operations of a warehouse. However, what is it?
In this article, we will discuss what warehouse management is. We will talk about the importance and the processes involved in managing your warehouse. Additionally, we will tell you some tips on improving your warehouse management.
Once you are done reading this article, you will have a deeper knowledge on how you can manage your warehouse. Thus, you can effectively use some of our tips to improve your warehouse management. So without further ado, let us now start!
Warehouse Management:What is it?
Warehouse management means managing and controlling everything that happens in a warehouse to handle goods efficiently. It includes tasks like receiving and storing inventory, fulfilling orders, and shipping products.
The main aim of warehouse management is to keep track of inventory, save money, and make operations run smoothly. This is done by using different methods, technologies, and procedures that help organize the warehouse and manage inventory effectively.
Why isManaging Your Warehouse Important?
A recent study conducted by Oracle revealed that a staggering 82% of American consumers express concern over the potential impact of supply chain disruptions, such as delivery delays.
This highlights the significant influence of warehouse management, which serves as a vital element within the transport and logistics sector.
Additionally, warehouse management holds significant importance for businesses involved in physical goods. It ensures that businesses maintain accurate and efficient control over their inventory levels. By carefully tracking and managing stock quantities, businesses can avoid stock outs or overstocking.
Streamlined order fulfillment is a critical aspect of warehouse management. By establishing well-organized product placement and efficient processes, businesses can fulfill customer orders quickly and accurately. This leads to improved customer service, increased customer loyalty, and positive word-of-mouth recommendations.
Another significant aspect is the cost reduction achieved through effective warehouse management.
By utilizing warehouse space wisely, maintaining proper inventory control, and optimizing processes, businesses can minimize expenses associated with storage, labor, and transportation. This optimization enhances profitability and allows businesses to allocate their resources more effectively.
Accurate demand forecasting is another valuable outcome of warehouse management. Through data analysis and monitoring inventory trends, warehouse management enables businesses to make precise predictions about customer demand.
This empowers them to plan procurement and production activities efficiently, avoiding inventory shortages or excessive stock.
Furthermore, warehouse management enhances operational efficiency by optimizing workflows, reducing errors, and maximizing resource utilization.
These improvements lead to smoother processes, shorter cycle times, increased productivity, and improved overall operational effectiveness.
The WarehouseManagement Process
So, what exactly goes on in a warehouse? For you to become an expert at warehouse management, it is important to understand the tasks and processes involved.
Here are the common operations that happen in a warehouse:
1. Receiving
Before starting any other work, a business needs to bring its inventory into the warehouse. During the receiving process, warehouse staff receive shipments or goods from trucks at the loading docks.
They count the items to make sure they have received the correct quantity. They also check the condition of the goods and keep records of the received inventory.
2. Put-away
After the inventory has been received, it must be stored in the appropriate location. Warehouse putaway involves moving the inventory from the receiving area to the correct storage area.
There are various methods for warehouse putaway, and it may require some trial and error to determine the most suitable approach for your business.
Ultimately, you should select a putaway strategy that aligns with the characteristics of your inventory, such as its type, volume, and variety. It should also take into account the available space and storage options in your warehouse.
3. Storage
In most cases, it is necessary to store inventory in the warehouse for a certain period of time until orders are received. Choosing the right inventory storage approach is a crucial decision that can greatly impact your warehousing operations.
Typically, in ecommerce businesses, they tend to store inventory on warehouse racks using pallets or bins. This allows each product variant (SKU) to have its own designated storage location.
4. Picking
Once an order has been confirmed and processed, the next step is to gather the required inventory from the shelves.
Depending on the level of technology and automation implemented in your warehouse, you can generate pick lists or create them manually for each picker.
These lists help the pickers retrieve items in the most efficient manner. Various methods can be used, such as zone picking, wave picking, or batch picking.
When a new order is received, the picker is provided with a packing slip that contains a list of the items ordered and their corresponding storage locations in the warehouse. The picker’s task is to collect the specified products from their respective storage locations.
5. Packing
After the order has been selected, it is passed on to a packer, whose role is to prepare it for shipment.
This involves carefully placing the items in a box or poly mailer, ensuring their secure arrangement, and including any necessary packing materials. Finally, the packer attaches the shipping label to the package.
6. Shipping
Depending on the delivery choices and shipping services provided to customers, shipping carriers such as DHL, USPS, FedEx, and UPS will collect the orders from the warehouse and transport the packages to their intended destinations.
Once the order is shipped, it is important that your warehouse management system can automatically transmit tracking information for ecommerce orders back to your store. This enables your customers to conveniently track the progress of their shipments.
Tips to ImproveYour Warehouse Management
Below are some tips to improve your warehouse management:
1. Automate your warehouse
Automating your warehouse can help you reduce human error and speed up common warehouse operations. Warehouse automation can include technologies such as barcodes, RFID, automated storage and retrieval systems (AS/RS), and warehouse management software (WMS). These technologies can help improve inventory accuracy, reduce errors, and increase efficiency.
For example, implementing a WMS can help businesses optimize their warehouse operations by improving inventory management, order management, and labor management processes. Automating your warehouse can lead to increased speed, accuracy, and productivity, ultimately enhancing profitability.
2. Safety is a priority
Prioritizing safety can help you avoid accidents and injuries in the workplace. Warehouse safety should be a top priority for businesses, as it can help prevent injuries, reduce workers’ compensation claims, and improve overall productivity.
Some safety measures that can be implemented include providing proper training to employees, using safety equipment such as hard hats and safety glasses, and maintaining a clean and organized warehouse environment. Regular safety inspections can also help identify potential hazards and address them before they become bigger problems.
3. Tracking right KPIs
Tracking the right key performance indicators (KPIs) can help you measure the effectiveness of your warehouse management and identify areas for improvement. Some KPIs that can be tracked include inventory accuracy, order fulfillment time, order accuracy, and labor productivity.
Tracking these KPIs, businesses can identify areas where they are excelling and areas where they need to improve. This can help them make data-driven decisions and optimize their warehouse operations.
4. Conduct regular inspections
Conducting regular inspections can help you identify potential issues and address them before they become bigger problems. Regular inspections can include checking for damaged or expired inventory, ensuring that equipment is functioning properly, and maintaining a clean and organized warehouse environment.
By conducting regular inspections, businesses can identify potential hazards and address them before they lead to accidents or injuries. This can help improve overall safety
WarehouseManagement Software
Here are some of the warehouse management software available in the market:
1. Fishbowl Inventory
Fishbowl Inventory is a popular warehouse management software that offers comprehensive inventory management, order management, and labor management features. It is designed for small and mid-sized businesses and can be integrated with an ecommerce platform.
2. Cin7 Core
Cin7 Core or formerly known as DEAR Systems is a cloud-based inventory management software that offers a range of features and functionalities to help businesses manage their inventory, order management, and labor management processes effectively. It is designed for small and mid-sized businesses.
3. PULPO WMS
PULPO WMS is a warehouse management software that offers complete supply chain process audits. It is designed for businesses of all sizes and structures.
4. Orders in Seconds
Orders in Seconds is a comprehensive warehouse management system that enables businesses to optimize their warehouse operations by improving inventory management, order management, and labor management processes. It is designed for small and mid-sized businesses and can be integrated with an ecommerce platform.
Conclusion
Warehouse management plays a pivotal role in ensuring the efficient functioning of the supply chain. Businesses benefit from accurate inventory control, streamlined processes, and reduced costs. Employing best practices, such as automation, safety prioritization, tracking key performance indicators, and regular inspections, contributes to enhanced warehouse management.
Frequentlyasked questions
What is Warehouse Management?
Warehouse management means managing and controlling everything that happens in a warehouse to handle goods efficiently. It includes tasks like receiving and storing inventory, fulfilling orders, and shipping products.
Why is it important?
It ensures that businesses maintain accurate and efficient control over their inventory levels. By carefully tracking and managing stock quantities, businesses can avoid stock outs or overstocking.
What are the common operations in a warehouse?
The common operations in a warehouse are receiving, put-away, storage, picking, packing, and shipping.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.