What is warehouse management in logistics is very crucial to know for every business in this modern age. While in supply chain, products are moved from manufacturer to the ultimate user, it goes through several processes. One such process is storing the products while they are not in transport. This storage part is known as warehouse management in logistics.
Warehouse manages the aspects of receiving, storing and shipping in the right amount and at the right time for numerous products. And one most basic ways to optimize the warehouse management process is with warehouse logistics.
What is Warehouse Management?
Warehouse management is the process that covers all the elements that are involved in running the day-to-day operations of a warehouse. Managing the receival of the goods, storing them, scheduling labor, managing people and inventory, fulfilling the order requirements by shipping the goods to the right location.
An effective and efficient managementof all the above processes from reliable warehouse service providers aid in increasing the warehouse’s productivity and reducing costs. Hence, warehouse management optimization is one of the crucial parts of supply chain management.
What is a Warehouse Management System?
Warehouse management system (WMS) is a software solution that brings efficiency in the day-to-day operations within a warehouse. It is like a central control of each and every operation in the warehouse.
This way, the warehouse managers can track the availability and transfer of inventory within the warehouse. All the processes are automated with the help of wireless devices in automobiles as well as barcoding to keep a track on receiving, picking, and packing, storing, and shipping. This ensures accuracy and efficiency in each and every process.
Role of Warehousing in a Logistics System
There are several roles that a warehouse takes up in the entire supply chain process. The roles that a warehouse takes up are:
1. Transportation
A warehouse that offers an overall service, they manage the movement of goods from the supplier to the buyer. In this process, they become the middle party between the supplier and the buyer who takes care of both of their needs where they aid supplier in transporting the goods and storing them in relevant spaces and for the buyer, to receive the goods at a convenient location.
2. Managing Quality Controls
Evry product received by the warehouse is accurately managed in terms of quality. This quality check includes the exact size, number, weight, and configuration of every product. The quality is recorded as well as stored at a relevant place and at a relevant temperature to maintain the product’s quality. Along with the quality, a check on the correct quantity is also taken care of, to keep a track on the order requirements and its fulfilment. This way, the customer gets the goods in the best possible form.
3. Customer Service
Every customer’s expectation from the supplier or a warehouse are clear, first, they want a qualitative product, which a supplier sends to the warehouse that they qualitatively store and deliver to the customer. Second, order fulfilment at the right time and in the right quantity, which is taken care of by the warehouse with the WMS software.
4. A warehouse also provides protection of products in case of unwanted event occurrence. In such situation, they thrive to fulfil the order with proper communication and effective distribution using WMS software for checking on inventory.
5. The warehouse smoothens the entire process and becomes a link between the supplier and buyer to fulfil the order in the best interest of both the parties.
Functions of Warehousing in Logistics
The major functions performed by a warehouse in logistics system are planning, organizing, coordinating, and controlling the entire operation to fulfil the orders placed by the buyers in an effective and efficient manner. The complete process is handled efficiently with the help of the centralized WMS software that helps in keeping a track on goods (receival, storage and shipping), labor (human resource around the warehouse operations), documentations, quality checks and implementation of all the activities.
Inventory Management vs Warehouse Management
Since the terms inventory management and warehouse management are most of the times interchangeably used, there is a difference between the two:
- Inventory management is accepting, storing and shipping the products for and effective materials or order fulfilment
- Warehouse management includes all the aspects of warehouse operations involving the transport, storage, shipping of goods, labor management, documentations, monitoring, tracking and reporting.
So, inventory management is a part of warehouse management and warehouse management is a wider term compared to inventory management in supply chain.
Types of Warehousing in Logistics
There are different types of warehouses that an organization can reach out to:
1. Public Warehouse
There are several commercial warehouses owned by Government agencies for the public to use and store their products at. They are the public warehouses which are mostly used by small businesses with small order sizes.
2. Private Warehouse
Large retail houses, e-commerce giants, wholesalers and such businesses have their own warehousing facility that stores and deliver goods of only their organization are private warehouses.
3. Bonded Warehouse
When goods are imported from foreign countries, they are subject to custom duties. Until a business (that has imported goods from the foreign country) pays the import duty, the products are stored at the bonded warehouse and authorities provide the bonds against the business’s products.
4. Smart Warehouse
A warehouse using AI to automate their processes is a smart warehouse. The processes are handled by drones and robots which increases its efficiency and helps in fulfilling orders faster compared to a normal warehousing facility.
5. Distribution Centres
A business who requires to just store their small consignments for a short duration of time, uses distribution centre kind of warehouse that avails them this facility. A considerable amount of goods is received and shipped in a short duration of time from this warehouse.
Conclusion
Warehouse management in logistics is as important as production at the manufacturing unit. An efficient warehouse facility aid in optimizing the process to reduce costs and increase effectiveness.
