Warehouse Management and How it Works

Warehouse management affects customer satisfaction and also the costs of the supply chain. Therefore, warehouse management is an important factor to gain profits and strengthen your company's competitiveness.

Warehouse management activities are part of the logistics supply chain. Along with the times, management is not limited to the space used for storage of goods, but can also provide value through a variety of services.

Having a warehouse management system or warehouse management system is part of the solution to achieve operational optimization. This can have the effect of resulting in reduced costs, increased productivity, and a better experience for consumers.

What Is Warehouse Management?

Warehouse management consists of activities that design and implement a series of processes to optimize the storage of goods and ensure the achievement of the following benefits:

• Speed up the transit of goods through the warehouse
• Ensure correct product identification
• Maximize the use of available space
• Minimize handling of goods
• Accurate inventory keeping
• Ensuring timely and correct delivery
• Increase staff productivity

Warehouse processes or warehouse processes can be classified under five main tasks:

1. Reception

When the goods arrive, it is necessary to accurately record the staff ID data, unload the goods, and check their conformity with the bill of landing.

2. Storage

After identifying the goods, it is necessary to provide space in the warehouse for the goods according to volume, weight and turnover.

3. Control of inventories

It is necessary to know not only the products held in the warehouse, but also their location and the target of their movement.

4. Picking

Means selecting and collecting products in the warehouse to fulfill the ordered delivery.

5. Shipping or Delivery

It is a procedure for documenting shipments, carrying out physical inspection of cargo to ensure conformity with the goods, and loading it into the appropriate transport vehicle.

How Warehouse Management System Works

The purpose of using this system is to automate tasks and speed up operational performance and eliminate errors. Warehouse management systems need all kinds of information to accurately monitor goods and prepare reports that validate the productivity and results of every task performed in the warehouse. The type of information required consists of:

• Information related to warehouse management, such as performance and work results
• Information relating to the possibility to view and trace goods, in other words being able to monitor and locate goods or cargo on every route taken from the origin of the shipment to the destination by using systems such as barcodes and RFID labels

For a successful management system implementation, you should focus on the following aspects:

• Aim for easy management system integration with your ERP, as you need to share information between them to make it easier to make informed decisions.
• Make sure you can record codes such as barcodes and RFID labels that can record the entry, movement, collection and release of goods more easily.
• Conduct an initial assessment of your process to eliminate unnecessary moves and tasks so that the implementation of the new management system is built on an agile process.

Improving Warehouse Effectivity

The way to increase warehouse productivity is to make the best use of available space by using management and technology solutions. Here are some principles that can be used to increase warehouse productivity and have a positive impact on company profitability:

• Use the available space maximally and effectively. It's not easy to get space to expand your shed, but you can make the best use of all the vertical space efficiently.
• Pay attention to tasks such as shelving, replenishment of inventory, and location of goods as they make it easier to find and collect products and avoid shortages or excess supplies.
• Design workflows to minimize bottlenecks in the warehouse and avoid unproductive distractions among employees.
• Determine the location of the shelves related to the circulation of goods so that the placement and collection are efficient.
• Automate procedures by using computer systems or robots to transfer and place goods in an effort to save time and reduce errors.
• Hear input from your staff on how to improve operational performance. Staff work in the field around the clock so they are more familiar with operational issues that occur and can provide more efficient solutions.
• Assess operational performance regularly and be open to changes so you can implement a system of continuous improvement.

More Efficient Warehouse Design

The warehouse layout should aim to maximize its capacity. Here are some sample solutions you can try:

• Selective racking

You can use it to place up to two pallets from front to back, reducing the front space for each type of item. This system can be used to reduce the number of aisles between shelves, thereby making better use of warehouse space.

• Mezzanine

Mezzanines are platforms placed at different heights and positions so you can use all the vertical space in the warehouse. Mezzanine can be used to store goods or as an office space.

• Drive In

Useful when we store the same product in bulk. Consists of several racks that connect without aisles between the shelves, then using a forklift to raise the load to the place where the goods will be moved and arranged.

Currently, efficient warehouse management is essential to maintain a company's competitiveness in the business environment. Optimal warehouse management should reflect additional services, reduced costs, and the overall value it can contribute to the supply chain. This is one of the important keys to ensure your company continues to meet its profitability goals.