What is warehouse management?
Warehouse management is the process, control, and optimization of warehouse operations beginning with the receipt of inventory into a warehouse or multiple warehouses and continuing until items are moved, sold, or consumed. Warehouse management is the supervision of warehouse operations. Receiving, tracking, and storing inventory, as well as training employees, managing shipping, workload planning, and monitoring the movement of goods, are all part of the job.
What exactly is a warehouse management system (WMS)?
A warehouse management system (WMS) is software that is designed to optimize warehouse operational processes. Implementing a warehouse management system (WMS) provides complete visibility into real-time inventory levels and storage, staff productivity, demand forecasting, and order fulfilment workflows within a warehouse.
Warehouse management systems are important because they eliminate manual processes and guesswork, saving time and providing a more accurate snapshot of what’s going on inside a facility without the need for continuous warehouse audits.
This data assists warehouse managers in identifying areas for improvement and tracking progress in order to drive optimizations throughout the supply chain, from the time inventory arrives at the loading docks to the time it is shipped to its next destination.
Warehouse management software includes tools for driving strategic big picture improvements as well as those for monitoring day-to-day operations. What a management team sees in the warehouse management system will be different from what a picker or packer sees on the warehouse floor if they rely on the system for determining what to pick or pack next.
warehouse management procedures
Warehouse management is one aspect of supply chain management process. Retail order fulfilment, storage, inventory management, shipping, and distribution are all affected. Having an all-in-one solution allows you to see what’s happening in real-time across the warehouse’s various functions, such as inventory being received, orders being packed, shipments being labelled, and any other movement of goods.
1. Inventory management
Inventory tracking is the process of monitoring stock levels so that you know which SKUs you have in your warehouse and where they are stored, or if they are in In transit from a manufacturer or on its way to a retailer.
Inventory management informs you of how much product is available for shipment if a customer orders an item now, as well as when you should order more based on projected volume.
As you expand, you will most likely turn over inventory more quickly, open new locations, and expand your product lines. This emphasizes the importance of inventory accuracy and tracking.
2. Selection and packing
Picking and packing are two of the most important tasks performed in a warehouse. A warehouse management system should generate pick lists for each picker in order to retrieve items as efficiently as possible. Zone picking, wave picking, and batch picking are all examples of this.
For each new order, the picker will be given a packing slip detailing the items ordered as well as the warehouse storage locations. The order will be picked up by the picker from their respective locations.
When an order is picked, it is given to a packer, who is in charge of securely placing the items in a box or poly mailer, adding any necessary packing materials, and affixing a shipping label to it.
3. Receiving and stockpiling
Any warehousing operation must be capable of receiving inventory or freight from trucks at loading docks and storing it in a secure location. A warehouse management system must be able to scan in each new box received along with the inventory quantities it contains.
It will then be transported to its short-term or long-term inventory storage location and scanned once more. Warehouse management software should provide each user with clear instructions on how to receive, unpack, retrieve, pick, pack, and ship inventory.
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4. Delivery
Shipping carriers such as DHL, USPS, and FedEx will pick up orders from the warehouse and ship packages to their next destination based on the delivery options and shipping services you provide to customers.
Once the order has shipped, your warehouse management system should be able to automatically send ecommerce order tracking information back to your store, allowing your customers to track their shipments.
5. Reporting
A warehouse management system should provide operational and inventory reports that are ready to use across the warehouse. This could include order fulfilment accuracy (total mis-picks, mis-packs, etc.), total orders fulfilled by the hour to measure staff efficiency, orders shipped on time, and much more.
There are also reports on people’s operations, such as inventory forecasting, to help with labor management and staffing needs. A warehouse management tracking system allows you to quickly determine which employees have completed safety training, as well as those who have licenses and certifications to operate specific equipment and other regulatory requirements that must be met in order to operate a safe warehouse.
3 characteristics of warehouse management system
If you insist on running your own warehouse, make sure you do your homework and find a warehouse management system that meets your company’s specific requirements.
1. Connectivity software for your store
Integrations with your online stores will make everything run more smoothly, from sending individual tracking information back to customers to monitoring sales trends in order to meet demand. The warehouse management system will generate pick lists that optimize each picker’s workflow based on the logic that matches your warehouse design and items ordered by feeding in your sales channels.
It should priorities orders that were placed first or request expedited shipping, in addition to picking similar orders that take inventory in the same area or rows, so you can keep promises to customers.
2. Software that works with your warehouse equipment.
Depending on how your warehouse is configured and operated, you’ll want to ensure that any warehouse management system you use is compatible with inventory scanners, terminals, labels and printers, scales, handheld or wearable devices, as well as other physical equipment or hardware. If not, remember to account for any additional purchases you’ll need to make.
3. Proven Return on Investment
In addition to hearing how other businesses, including those of a similar size and industry, have found success with a specific warehouse management system, look for examples of time and money savings demonstrated by the software, such as:
per hour of time saved percent improvement in accuracy or error reduction money saved or recouped Increase the speed or throughput of order processing. If you don’t understand how the warehouse management system will improve warehouse operations, you won’t be able to justify the investment.
The 5 Warehouse Management Fundamentals
Managing the warehouse is not an easy task; it requires proper planning that is based on some solid fundamental points to be focused on. If you manage your warehouse with these fundamentals in mind, you will see excellent results.
Warehouse Management Focused on Customers
It is self-evident that not only your marketing strategies, but also your warehouse strategies, should be tailored to the needs of your customers. They will not advise you on how to manage your products. Nonetheless, their product preferences and purchasing behavior will tell you what type of inventory you should keep in your warehouse so that it can be shipped immediately and not delayed due to operational errors whenever an order is placed. You must strike the proper balance between your productivity and product management based on customer preferences.
Control and manage your warehouse with a solid workflow.
Knowing what should be done is not as difficult as putting that knowledge into action. If you devise a strategy for some departments, you must ensure that the strategy is carried out as flawlessly as possible.
You must create proper workflows, processes, rules, and protocols for the warehouse workforce to follow in order for everyone to work in sync and achieve a common goal.
Create a system that is ready to adapt to changing conditions.
Workflows, protocols, and rules are important, but being able to change strategies instantly and work in the direction of improved strategies is also critical.
It is possible that your data will suddenly show that trends are changing, and you will need to change your workflow or a portion of it. The entire team, including the warehouse management system, should then be able to switch to a different plan of action with as little friction as possible.
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Data reveals the path.
Instead of making a decision and then looking at the data, look at the data first and then make a decision. It is critical to let your data guide you, whether it is data on customer behavior or information on inventory performance.
Even after you’ve made a decision based on the data, you should keep an eye on the information/data. Never assume that everything will be or is going perfectly because there will always be something that needs to be improved. As a result, warehouse management is not a job where you can sit back and relax while everything takes care of itself.
Embrace Technology – Walk with Time
It is critical to keep up with ever-changing technology. You never know when software or robotics-enabled equipment will be useful in streamlining your warehouse operations or enabling you to become an Omni channel e-commerce business.
Companies such as Nike pay millions of dollars to the Boston-based predictive analytic firm “Collect” to develop software that can forecast demand.
Warehouse and inventory management software, data collection tools, and other robotic instruments can all be beneficial. As a result, it is critical to support technology in warehouse management. However, you must be certain of the technology you use. It should be functional and worth the money spent on it.
Warehouse Management Technologies
With the introduction of computerized solutions, new cyber-physical solutions supplanted manual methods. They improve the processes by assisting businesses in gaining greater control over their inventories. One of the most significant benefits of their use is business intelligence.
Barcodes
They serve as identification tools and are directly applied to the cartoons/products. They are inexpensive, efficient, and widely used by nearly every business today. To ensure seamless management, barcodes are used at every stage of the supply chain.
Robotics in the Warehouse
Robots are increasingly being used to reduce the number of touches. This reduces the number of errors made when handling inventory. It also reduces employee proliferation and misplacing while saving a significant amount of time per transaction.
The Internet of Things (IoT)
As IR 4.0 continues to defy industry norms, warehouse owners are taking a step forward by incorporating IoT into their operations. This has the potential to fundamentally alter how businesses interact with their inventory and the supply chain as a whole.
