What is warehousing logistics? How to Manage a Warehouse (2024)

The product you order online goes through several stages before it reaches your doorstep.

Small businesses may retrieve items from storage areas, manually record details, package and hand over products to shippers.

However, big brands use extensive warehouse networks where items move along racks, conveyor belts, and loading docks while being electronically cataloged, stored, and prepared for shipment.

Well-executed warehouse logistics ensures faster order processing, lower costs and higher profits customer satisfaction. However, inefficient warehouse logistics can mean delayed shipments, incorrect orders, and damaged goods.

Here’s how to streamline your warehouse logistics so you can avoid problems, reduce costs, and increase customer satisfaction. Learn tips and techniques for optimizing your system Inventory managementpicking and packing processes, and warehousing operations.

What is warehousing logistics?

Warehousing logistics refers to managing the flow of goods and information within the warehouse storehousefrom receiving and storing inventory to picking, packing and Shipping order. It includes inventory management, order processing, material handling and quality control.

The goal of warehousing logistics is to improve the efficiency of warehouses and promote customer satisfaction By fine-tuning warehouse space and reducing order processing time.

Warehousing Logistics and Supply Chain Management

Although warehousing logistics and supply chain management Closely related, they are different concepts. Warehouse logistics focuses specifically on the processes and activities within a warehouse, such as receiving, storing, picking, packaging, and shipping goods.

Supply chain management has a broader scope. It involves the planning, coordination and control of all activities throughout the supply chain, from raw materials to purchase to finished product delivery. Including warehousing logistics, Supplier relationship management, Demand Forecasttransportation, and reverse logistics For customer returns.

Tips for Improving Warehouse Logistics

Effective logistics creates efficient warehouse operations and reduces costs. Here are seven tips to help you overcome common logistics challenges and transform your warehouse into a well-oiled machine:

Implement warehouse management system

A Warehouse Management System (WMS) is a software solution that enhances and automates warehousing processes. It provides instant visibility into inventory levels, order status and employee productivity. It is the foundation of a well-functioning warehouse logistics system. Warehouse managers use it to oversee inventory management and develop strategies to improve warehouse logistics, such as reducing waste and ensuring safety.

Inaccurate inventory tracking and a lack of real-time information can hinder efficient warehouse logistics and lead to poor decisions that can lead to out-of-stocks, excess inventory and higher costs. Implement WMS – with the following features Barcode scanningautomated picking routes and real-time data analysis—can improve operational efficiency and accuracy.

Popular WMS options include Oracle NetSuite WMS, SAP extends warehouse managementand Blue Yonder’s WMS.

Optimize warehouse layout and storage

A disorganized and inefficiently configured warehouse will slow down logistics, waste time, increase labor costs, and bring safety concerns. For example, food distributors may dispose of expired products without immediate tracking, resulting in financial losses and health risks.

To address these issues, warehouse managers can optimize warehouse layouts and storage systems. Analyzing the current layout, identifying bottlenecks and redesigning storage spaces can maximize efficiency. Regional selection and other strategies, ABC analysis Use of vertical space for grading stock quality and with appropriate shelving and shelving systems can increase storage density and reduce picker travel time.

Simplify the order picking process

Technology like barcode scanners or voice-guided picking tools can minimize travel times, reduce errors and improve overall picking efficiency. To simplify order picking, consider implementing picking strategies such as batch picking, wave picking, or zone picking:

• Batch picking. This method involves grouping similar items together and collecting multiple orders simultaneously to reduce travel time and increase efficiency.

• Wave pickup. This picking strategy releases orders in batches at predetermined intervals, allowing pickers to focus on a specific set of orders and increase productivity.

• Area selection. By dividing your warehouse into different areas and assigning each picker to a specific area, you can reduce travel time and increase your pickers’ familiarity with the products in their area.

Leverage automation and technology

Manual processes and outdated technology can lead to inefficiencies, errors and a lack of immediate monitoring throughout the supply chain. Don’t shy away from automation and technology to address these challenges. Radio frequency identification (RFID), automated guided vehicles (AGVs) and voice-guided picking provide accurate, real-time data. This allows you to track inventory levels, monitor Key Performance Indicators (KPIs)and improve processes such as receiving, putting away and order fulfillment.

In addition to WMS, transportation management systems (TMS), Inventory management softwareas well as other warehouse management software solutions such as Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) system. Physical automation tools such as conveyors, sorters, and automated storage and retrieval systems (AS/RS) can also streamline material handling processes.

You can also improve warehouse logistics by using voice picking solutions to speed up order completion. Sporting goods retailers can use voice picking solutions, where workers wear headsets and give verbal instructions on which items to pick and where to find them in the warehouse.

Establish an effective returns management procedure

Customer returns are common due to product defects, order errors, or dissatisfaction. low efficiency Returns management It will increase costs and strain the company’s supply chain. If your warehouse lacks streamlined processes for inspecting, repairing, or disposing of damaged items, it can result in increased storage costs and potential inventory discrepancies.

Establish efficient returns management and formulate clear return policy Outline acceptable reasons, time limits and any fees. Then, create a dedicated returns-handling area in the warehouse where staff can quickly inspect, classify and determine the appropriate action for returns, such as restocking, refurbishment or disposal.

Barcode scanning and integrated inventory management systems can help accurately track returned items, instantly update inventory levels, and minimize errors.

Invest in employee training and development

Some companies outsource logistics to third party suppliers, but for those who manage their own warehouses, investing in employee training is critical. Undertrained warehouse workers can lead to more errors, mishandling perishable goods, inaccurately tracking inventory levels, and increasing the risk of accidents.

To address these issues, implement a training program that covers safety protocols, material handling techniques, inventory management, and proper equipment use. This provides employees with the necessary knowledge and skills to reduce errors and complete their jobs efficiently.

Continuously monitor and analyze performance indicators

Continuously monitor and analyze KPIs such as order accuracy, Inventory turnoverand timely delivery rates are critical to identifying trends, bottlenecks, and areas for improvement. Without it, there can be inefficiencies, increased operating costs, and challenges in meeting customer demand.

For example, a company might set an order accuracy KPI of 99.5%, but realize that the current accuracy is 95%. To address this issue, it could implement a barcode scanning system and provide additional employee training to improve accuracy.