Explore Warehouse Management with Crucial Processes and Top Principles

Start learning about warehouse management basics before you take up any online course on the same.

Warehouse management ensures the optimisation of operational costs, utilisation of inventory, and fulfilment of orders. Without it, on-time delivery suffers, which leads to customer dissatisfaction and loss of opportunity to earn revenue. 

Understanding warehouse management requires familiarity with its principles and processes, which today’s blog will help you explore. 

What is Warehouse Management?

Warehouse management refers to handling all operations in a warehouse. The coordination of tracking and managing inventory, planning and controlling the movement of goods, and all such activities fall under it.

Before delving, let’s explore some key concepts. 

Meaning of Warehouse 

A warehouse refers to a commercial storage facility for goods to help the supply chain. In the world of supply chain management, there are three types of warehouses – raw materials, semi-finished goods, and finished goods. 

The common duties in a warehouse include the following. 

1. Maintaining a record of receipts for each good
2. Verification of goods
3. Maintaining safety of goods 
4. Preparing orders for dispatch
5. Keeping record of inventories, tracking demand and supply, etc. 

All these duties are carried out in dedicated areas within a warehouse. 

1. Loading and unloading docks
2. Reception area for verification
3. Storage area
4. Order preparation area
5. Dispatch area
6. Warehouse technical area for forklifts 
7. Warehouse administrative area

How is a Warehouse Different from a Distribution Centre

A warehouse needs to be strategically located so that transportation costs are optimised. Note that it can also be synonymously used as a distribution centre. But, the single point of difference between a distribution centre and warehouse, is that order fulfilling is not incorporated in a warehouse. 

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Difference Between Warehouse Management and Inventory Management

Both these concepts deal with storage and movement of goods from one point to another. But there are some notable differences between the two. 

Inventory management focuses on the levels of inventory and all the information related to trends from sales and levels of stock. On the other hand, warehouse management focuses on tracking the movement of goods on the ground level. You can also say that inventory management is the first process involved in warehouse management. 

Warehouse management is about managing the entire storage facility, while inventory management is dealing with quantity. 

Common Roles in Warehouse Management

• Warehouse Manager – Carrying out all tasks related to operations efficiently and ensure compliance with state or national laws. 
• Warehouse Supervisor – Reporting to the warehouse manager regarding inventory levels, managing employees under them, etc.
• Stocker – Handling deliveries, shelving appropriately, managing a warehouse management system, etc.
• Warehouse Worker – Tagging shipments, maintaining records of working and defective items
• Receiver – Receiving shipments, monitoring inventory levels and reporting, etc. 
• Shipping Specialist – Tracking orders, reporting shipment errors, etc. 

Find the top online logistics and supply chain courses

Warehouse Management Processes

The processes in warehouse management include the following. 

Inventory Tracking 

Keeping a continuous track of inventory is a necessary process. Otherwise, it can lead to over- or under-stocking. It is through inventory tracking, a warehouse remains organised. 

Picking

This process refers to receiving the goods. These items have dedicated package slips that include the storage location and what was ordered. 

Packing 

Once the goods are picked they must be prepared for shipment. This stage refers to packing, and the shipment must include the package slip. 

Receiving 

The receiver must ensure that what was ordered is received in the right quantity at the predetermined time. 

Shipping 

This stage of the warehouse management process is to ensure the goods are transported in the right vehicle and delivered to customers on time. 

Warehouse Management Principles

Making sure the warehouse operates without any bottleneck, there are a few standard principles of warehouse management to consider. 

Ensuring Stock Levels are Optimised At All Times

When the stock level rises more than the demand, it will cost for storing the items. At the same time, it is important to consider the unforeseen circumstances. This is why, warehouse management software are required that provide an accurate picture. 

Related: Demand Forecasting

Bringing Efficiency to Every Transaction

From shipping to receiving, all processes should be efficient. Ultimately, it will affect the supply chain. 

Controlling Movement and Storage

Every stock level must be detailed, and that is possible through proper controlling. In short, it is about taking corrective actions at the right time in case of any deviation. 

Read more about controlling in management.  

Making Sales Order Processing Efficient

Sales order processing happens at the warehouse. It includes steps such as receiving order, generating the sales order, picking and packing, shipping and invoicing. All these steps need to be efficient from the get-go. 

Read more: What is Logistics Management?

Focussing on the Customer

It is essential to ensure the customer is satisfied with on-time delivery with the right product and appropriate packaging. 

Parting Thoughts

These are the fundamentals of warehouse management that you should know. Get started to learn more about it by choosing courses such as Warehouse Management: Inventory, Stock and Supply Chains on Alison and Warehouse Management in Logistics & Supply Chain Management on Udemy.