Warehouse management is an aspect of logistics that focuses on managing inventory within warehouses, distribution centers, and retail locations. It can be one of the most difficult aspects for companies to handle because it often presents an organization with many regulatory requirements they must adhere to.
Within this article, we will explain what is warehouse management from the view of logistic management.
Operational Aspects of Logistics involved in Warehouse Management
The operational aspects of logistics involved in warehouse management include the following:
– Receiving materials from shipping carriers
– Shipping materials from warehouses to customers.
– Storage & inventory management: storing and managing inventory within the warehouse or other facilities.
– Transportation: shipping and transporting materials to customers through various transportation modes (sea, road, rail, and air)
– Stock control: maintaining records on inventory levels.
– Traceability: tracking of materials from their point of origin to the warehouse and back again
The following are some of the important aspects of warehouse management from the aspect of logistics:
Warehouse management is a component of logistic management. Warehouse management from the view of logistic management will include the following topics:
- Warehouses are considered as one type of distribution center within a supply chain, which means they are an integral part of the “logistics” which is what they are specifically tasked to be. If you were to think about it, warehouses exist within certain geographical locations and serve as storage centers for goods.
Warehouses, more so than other distribution centers, are more likely to handle goods on an automated basis. This means that you’ll usually find the use of conveyor belts, robotics, etc. in logistics solutions today which is why warehouses tend to be more automated than other distribution centers.
- Logistics warehouses offer storage facilities for finished goods or raw materials. They also serve as a physical transfer point where products are stored and then transferred to the appropriate line-of-business fulfillment facilities (i.e., stores for retail businesses).
- Logistics warehouses, as well as distribution centers which we’ll talk about in a bit, are crucial components of any supply chain. They allow the smooth and efficient flow of information and material within organizations and even across organizations.
- Warehouse management is all about creating an efficient storage system where products are stored safely, organized by product type or characteristics, and also according to location. Warehouse management is truly an art that requires certain skills that are relatively hard to learn.
- Warehouse management is both an art and science, which means that the principles involved are not fixed but rather subject to change depending on the industry, type of product stored in the warehouse, etc.
Warehouse management is closely tied to logistics (i.e., transportation). Therefore you’ll often find warehouse managers tasked with improving the transfer of materials between locations or even within locations. Instead of making decisions, they’ll consult with transportation planners to figure out where products need to be stored for optimal use by their customers.
Key points of warehouse management from the view of logistic management
1. Warehouse management is the combination of various tasks that are necessary to ensure that warehousing is carried out efficiently.
2. Warehouse management in logistic management refers to the principles and methods used by logistics managers in warehouses in order for goods to be received, stored, and dispatched effectively and efficiently.
3. Warehousing functions need effective warehouse management meaning that warehousing functions should be undertaken meaningfully, timely, and correctly with adequate resources provided and without wasting resources which will reduce costs for both businesses and customers.
4. Warehouse management is a combination of various tasks that are necessary to ensure that warehousing is carried out efficiently.
5. There are many factors that affect the efficiency of a warehouse management system, for example, materials handling equipment and its performance, capacity planning for goods receipt and storage, efficient work planning and workforce scheduling, goods processing and product picking/packing, forecasting accuracy, and facility layout.
6. The objectives for warehouse management are to ensure effective warehouse management so that goods can be received, stored, and dispatched efficiently.
7. Warehousing functions are activities that are required within a warehouse to fulfill the purpose of the organization. Such activities include materials handling, retailing, receiving, storing, and processing of goods, etc.
8. Warehouse management is an extension of the managerial systems applied in domestic environments, for example with regard to domestic warehousing.
9. Warehouse management is a combination of various tasks that are necessary to ensure that warehousing is carried out efficiently.
10. Warehouse management encompasses activities such as planning and scheduling, processing and inventory control, logistics management, customer relations, and educational needs of those engaged in the warehouse function.
11. It is not all about warehousing as it encompasses other functions such as management, planning, and other activities which link with the warehouse function such as human resource planning, etc.
12. Warehouse management is a combination of various tasks that are necessary to ensure that warehousing is carried out efficiently.
13. Point-of-sale (POS) systems are designed to perform the specific functions of the POS environment, such as receiving and restocking inventory, managing customer service issues, contacting customers about special sales or products, and other tasks related directly to customer demands and sales transactions.
14. The first step in proper warehouse management is a material requirements planning process that addresses both production and inventory requirements simultaneously.
15. In a supply chain, warehouse management is also influenced by the competitive nature of the business.
16. The warehouse manager coordinates the activities in the warehouse to ensure that it runs smoothly and effectively.
17. Warehouse management doesn’t only concern with managing goods but more with human resource development and maintenance which is a crucial factor in the industry today as workers need to be well trained and developed to perform their job well and within a stipulated time frame.
18. The warehouse manager should also develop a clear understanding of what is expected from them by the organization or customer.
19. Warehouse management deals with the coordination and management of activities in a warehouse so that goods can be received, stored, and dispatched efficiently to meet customer needs, whilst reducing costs and improving service levels through good housekeeping techniques.
20. In the technology sector warehouses are getting smarter with inventory, data entry, and bar code scanning becoming more widely used. Computerization has made it easier to track inventory and keep records which improves productivity tremendously.
It’s imperative that you know how warehouse management ties into logistic management, so let’s explore some logistics first. Logistics is often defined as the implementation of systems, processes, measures, or activities for managing or controlling operations within an organization. Logistics is one of the sub-sectors of distribution management.
Warehouse management is probably one of the most important logistics sub-sectors because it involves storing, collecting, and retrieving products that are essential to any business. Like other logistics sub-sectors, there are several different types of warehouses such as material handling warehouses (MWH), distribution warehouses (DWH), and storage & retrieval warehouses (SR Warehouse). Many organizations use all these different warehouses at the same time.
Want to know more:
- Which of the following is a function of warehouse management software?
- How can warehouse management reduce costs?
- What is order management?