A set of procedures and activities known as warehouse operations make sure that items enter and exit the warehouse without any problems. Warehouse operations involve several steps. There are multiple activities that need to be taken care of. Each step needs to be carried out carefully to ensure smooth and successful warehouse operations. As per statistics, the warehouse management market stood at USD 4.16 billion in 2019. It is expected to grow at a CAGR of 9.2% to reach USD 7.90 billion by 2027.
In this article, you will learn all about the activities that go on in a warehouse and the ways to manage them efficiently. Read on to find out!
Warehouse Operation Detailed
Warehouse operations include receiving the goods, storing them systematically, packing them appropriately, shipping them timely, and maintaining accurate accounting. To manage these tasks, the warehouse owners require hiring adequate manpower. Different tools and technology are also used to give way to smooth operations in warehouse facilities. Warehouse Management System (WMS) are employed by most warehouses to accomplish various activities systematically. Europe reportedly dominated the WMS market in 2021 with a market share of 32.6%. This software helps in managing various aspects of the warehouse operations efficiently. Planning the workflow, tracking the inventory levels, and assessing the performance becomes easy with the use of this integrated platform.
The Workflow in Warehouse Operations
The workflow in warehouse operations is as follows:
- Receiving Goods
This step involves receiving the goods to be stored in the warehouse. While this may seem simple, it involves several tasks such as checking the goods received and comparing them with the purchase orders (POs). It also includes assessing the product quality and ensuring that the items selected are accounted for. This is followed by loading the goods carefully to take them to the warehouse facility. This step is mostly taken care of by a business partner or vendor.
- Storing
This second step in warehouse operations is quite crucial. The goods received must be stored appropriately to ensure that the further steps can be carried out in a systematic and timely manner. Warehouses comprise different kinds of storage spaces to match the storage needs of different kinds of goods. Let us take a look at wareouse storage spaces:
- Cold Storage Units – These units include refrigerated shelving systems or dry ice packs to keep certain kinds of products fresh.
- Cage Shelving Systems – They are made of vertical metal frames that are filled with metal wire mesh panels used to store boxes.
- Pallet Racking Systems – They make use of metal frames that are filled with wooden boards.
- Bulk Bins – They are used for the storage of loose products such as rice and coffee beans.
- Picking
The orders are then picked and loaded for shipment. Different types of picking systems are used in the process. Let us take a look at the same:
- Gravity Fed Conveyor Systems – In this system, the boxes get pushed down to a belt. This belt then carries the boxes for loading.
- Mechanical Turntable Systems – This system enables the operators to find a product using the touch screen. It can also be located with the help of scanning equipment. Thereafter, robotic arms are used to pick the products.
- Robotically Guided Vehicles – These are used to move around the items in the warehouse.
- Returns
This includes managing the goods returned by the customers or suppliers. It involves the below-mentioned steps:
Receiving the Goods – The goods returned by different sources are received at the warehouse. At the time of receiving the goods, the team at the warehouse checks whether the goods are in good condition or not. The staff members document the discrepancies and share them with the relevant department.
Thorough Inspection – As the report is sent to the relevant departments, their teams inspect the goods thoroughly. They identify whether those goods can be repaired and resold or should they be discarded. This step often requires testing the products to check their functionality. The warehouse staff may be required to consult the manufacturer during the process.
Segregation of Goods – On the basis of their condition, the goods are segregated into different categories. Common categories under which they are grouped include resalable, repairable, and scrap.
Processing – Based on the category they belong to, the returned products are processed. This includes repairing and replenishing them for resale. The goods that aren’t repairable are disposed of. Warehouse owners try to discard them in an eco-friendly manner.
Maintaining Record – Records are updated according to the action taken on different returned goods. The information about the condition of the returned goods, the reason for the return and their disposition is recorded.
- Data Collection and Analysis
Data collection and analysis form a crucial part of warehouse operations. Data related to the inventory, orders, equipment and manpower engaged in the warehouse tasks is collected. Inventory data includes information about the type of goods stored in the warehouse and their quantity. Order data includes details about all the incoming and outgoing orders. Data about the manpower involves the tasks being undertaken by the warehouse workers and their performance. Equipment data includes data related to the usage, performance, and downtime of machines and equipment being used in the warehouse. By assessing the collated data, warehouse managers can make informed decisions to enhance productivity and lower the cost.
Technology in Managing Warehouse Operations
The use of advanced technology enables smooth warehouse operations. Warehouse management systems ensure greater efficiency, more productivity, and better safety for the staff members. Also known as warehouse inventory software, it is available in different types. This includes barcode scanners, voice recognition software, and RFID readers. The software system is used to conduct almost all kinds of warehouse operations including receiving, storing, packaging, and picking. The use of this system helps automate the processes involved. It reduces the need for carrying out various types of warehouse activities manually, thereby lowering the scope of human errors. This helps in cutting down on the overall cost. The flow of inventory through the warehouse becomes easier with the use of this system.
Moreover, with the use of this management system, you can collate all kinds of warehouse days in real time. It also tracks the performance and predicts demand for goods which helps enhance the operations. Statistics reveal that 60% of WMS have mobile capabilities. They enable the monitoring and tracking of inventory in real time.
Here are some of the ways in which you can enhance the efficiency of your warehouse operations:
- Implement an Efficient Warehouse Layout
An efficient layout and systematic placement of items can help streamline the warehouse activities. Grouping similar products and designing the warehouse to enable the smooth movement of goods can help in this direction. Besides, you can place frequently shipped items closer to the packing area.
- Optimise Inventory Levels
To optimise warehouse activities, you should take measures to avoid conditions like overstocking and understocking of inventory. The just-in-time inventory management method helps to tackle this problem.
- Warehouse Management System
Deploying a warehouse management system that automates the majority of the warehouse activities will help to enhance the operations carried out in the warehouse. The system provides real-time data. You can use this information to better manage your warehouse operations. According to the Logistics Management report, the warehouse management system is used in 85% of the warehouse operations.
- Make Use of Automation
In this modern competitive environment, it is essential to automate warehouse activities to attain maximum efficiency. Automation helps to reduce the time and workforce involved in the carrying out of various activities.
- Expedite Order Picking
Picking orders accurately without taking too much time is important to meet the delivery deadline. This can be done with the automation of the warehouse. Employing barcode scanners and pick-to-light systems can help with faster order processing.
The Fundamental Responsibilities in Warehouse Operations
The fundamental duties in warehouse operations are discussed below:
- Receiving – Receiving goods at the warehouse is the first process. This involves inspecting and assessing the incoming goods to verify their accuracy.
- Storing – The items are labelled properly and stored systematically.
- Safety – A fundamental duty of the warehouse staff is to ensure the safety of the goods stored in the facility.
- Picking – This involves picking the items and preparing them for shipment.
- Packing and Shipping – Packing the items appropriately so that they remain safe while shipping is another fundamental duty.
- Inventory Management – It is essential to count the items in the inventory regularly and update the inventory management system accordingly.
- Maintenance – It is essential to keep the warehouse clean and keep the items dust-free.
- Compliance – It is important to ensure that the operations carried out in the warehouse comply with the regulations set for the same.
Inventory Management Vs. Warehouse Management
Inventory management includes all the processes related to inventory such as ordering, storing, and maintaining it. Determining the inventory levels, identifying the items to be restocked, and setting reorder points are some of the activities that form a part of inventory management.
Warehouse management includes all the warehouse operations. This includes overseeing the warehouse activities including receiving, storing, picking, packing and shipping goods. Creating and implementing efficient warehouse layouts, hiring warehouse staff, and overseeing their activities also form a part of warehouse management.
Warehouse Operation Management: Definition
Warehouse operation management includes managing all the activities of the warehouse including receiving, storing, moving and maintaining the goods. It also includes planning, organising, and improving various aspects of warehouse management. The warehouse operation manager, along with his team, needs to ensure efficient management of warehouse activities. The manager must develop and implement effective strategies to accomplish these activities.
Distribution Center and Warehouse: Difference
Although warehouses and distribution centers are both used to store goods however they differ in certain aspects. Here is a look at the key differences between them:
- Distribution centers are larger facilities that are used to distribute goods to different locations including retail stores, warehouses as well as customers. On the other hand, warehouses mostly store and supply goods within a particular location.
- Distribution centers usually offer a wider range of services as compared to warehouses. These include return processing, cross-docking, and order fulfillment. These services help in distributing goods to multiple locations.
- Distribution centers handle larger volumes of shipments as compared to warehouses.
- Distribution centers are mostly more automated. They make use of technologies such as automated storage and retrieval systems, conveyor belts, and robotics. These technologies help optimise the flow of goods. While some of these technologies are also used in warehouses, they are usually less complicated and easy to operate.
Conclusion
Warehouse operations include a vast number of activities carried out by warehouse staff with the use of advanced equipment and technology. Warehouse management systems are employed at most new-age warehouses to accomplish these activities efficiently. Research shows that between 2022 and 2030, the global Warehouse Management System market is expected to grow at a compound yearly growth rate of 16.1%. It is likely to reach USD 11.08 billion by 2030. The use of these advanced systems helps automate various tasks thereby saving time and effort. Incorporating technology also helps cut down on the cost. It has been observed that warehouse management systems help reduce cost by 56%, improve accuracy by 67%, and enhance efficiency by 48%.
