Warehousing may seem a straightforward process of storing inventory in an organised facility.
However, warehousing needs three basic concepts to function efficiently. These include capacity planning, inventory management, and retrieving and shipping.
We explore these essential features to help you understand their role in supply chain management. More importantly, this article highlights vital points to assess and consider when looking for a potential warehouse partner.
1. Capacity Planning
Space is a vital resource in any warehouse operation. Through capacity planning, the staff can assign areas where different products will be stored.
That way, they minimise wasted space and prevent unnecessary foot traffic. A well-planned warehouse arrangement also ensures items are picked and packed quickly.
A warehouse company can employ different strategies to ensure an optimised and organised storage space. For example, they can:
- use a computer program to create 3D models and simulate various warehouse layouts
- employ automated systems to streamline warehouse activities
- use mobile warehouse shelving for easy rearrangement
- implement warehouse slotting or arrange goods based on item velocity, size, weight, etc.
2. Inventory Management
Inventory management in warehousing is a multi-tiered concept. It involves several processes:
- Receiving: Warehouse staff accepts the products for storage, ensuring everything is in good condition. As it is the first step, incoming items must be accurately verified to avoid errors. The use of technologies and equipment helps speed up the receiving process.
- Storage: The staff moves all received items to the proper bins or pallets. They may use moving equipment to transport heavier goods. Slotting optimisation helps in creating an organised storage space.
- Climate control: Temperature, humidity, and air quality can affect the quality of some sensitive items. So, aside from organising the products or raw materials, the staff should also ensure they store them in favourable environmental conditions. Air conditioning systems, dehumidifiers, and temperature-controlled loading docks are some measures modern warehouses use for climate control.
- Tracking: Real-time monitoring of items that move in and out of the warehouse is crucial to inventory management. Staff would register all products in the warehouse management system (WMS) for easy and accurate tracking.
- Reorganising: As the warehouse continuously receives new products, existing inventory may need rearranging to optimise space. The staff should input any inventory change in the system to keep everyone updated.
3. Retrieving and Shipping
Once the warehouse receives an order, the staff retrieves the items and prepares them for outbound shipping. Similar to inventory management, this basic warehousing concept involves several processes:
- Order picking: The staff selects and retrieves products from storage for order fulfilment. It’s crucial to perform this task quickly and accurately to avoid delays or product returns. Most warehouses use technology to shorten retrieval time and reduce picking errors and costs.
- Packing and labelling: After picking, the staff consolidates the items, packs them properly, and labels them for delivery. Warehouses also use WMS to help with the packing process. For example, the system provides packing instructions or identifies the best packaging material to reduce the risk of damage.
- Shipping: All packed items go to the loading area so the carriers can bring them to their final destination. The warehouse must implement proper distribution planning during this stage. That way, shipments are well-coordinated, and distribution routes are optimised, reducing shipping costs and ensuring timely deliveries.
Choose an Effective Warehouse
A warehouse is a vital component of supply chain management. Businesses and manufacturers use them to store their inventory and support their growing operations.
However, imagine warehousing without its basic concepts. It will be chaos! Items will be stored improperly, fulfilling orders will be slow, and shipping costs will be sky-high.
So, when choosing a warehouse service provider, evaluate its workflow. Check how they utilise workforce and technology to streamline their operations. Ask about their storage system to determine whether their facilities align with your inventory requirements.
Contact Effective Logistics on 03 8376 3300 for assistance. Our warehousing services and staff ensure your inventory is in good hands.
