Warehousing and Logistics: Main Objectives and Processes

by / ⠀Career Advice / June 10, 2022
warehouse operations

Warehouse logistics is an essential component of the eCommerce supply chain. It includes all actions related to storing and transferring items in a warehouse, from receiving inventory to shipment. Ecommerce businesses using Rakuten benefit from organized warehouse logistics by saving employees’ time, delivering items and services to market faster, and lowering warehouse operations expenses.

Understanding warehousing logistics is critical to maximizing warehouse space since a warehouse is essential to regulating the flow of existing inventory between supply and demand.

What Are Warehouse Logistics?

Warehouse logistics is a mash-up of two terms: warehouse and logistics. While warehousing is the actual storage of inventory for sale or distribution, logistics is the element of the supply chain that deals with the planning, execution, and management of products and services movement between the source and the destination.

Warehouse logistics’ main objectives

The ultimate objective of warehouse logistics is to provide a reliable system while keeping operating costs low while providing high-quality services. It’s usually a combination of the following actions:

  • Catering to eCommerce businesses’ marketing requirements through supply chain management
  • Meeting customer demand based on production, raw materials, labor availability, and market trends
  • Reducing operational costs without sacrificing service quality
  • Maximizing storage space through inventory management
  • Ensure appropriate warehouse workforce and crew organization
  • Stockpiling in anticipation of customer needs
  • Keeping the essential security measures in place to improve warehouse logistics and protect the quality and integrity of products stored

So, to accomplish these objectives, logistics managers work in all areas of warehouse logistics.

Warehouse Logistics Operations and Areas of Work

Receipt and inventory storage, packaging items according to orders, and sending shipments to distribution centers are all aspects of warehouse logistics. To ensure the efficacy of each of these operations, it is critical to improving warehouse logistics by taking into account the following main areas of work:

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The Warehouse Layout

The first step in building your warehouse installation and attaining efficient storage facility management is to plan its layout. The technique will differ based on whether you are constructing a new facility or redesigning an existing building. Several key elements will influence this design, including:

  • The volume of physical inventory and inventory control
  • Material flows and stock turnover in the warehouse
  • Available space and exact location
  • Work team makeup, organization, and qualifications
  • The corporate management system and whether or not a warehouse management system is used
  • Furthermore, you must consider the existing storage systems and handling equipment when remodeling the current plan.

The layout design process should always begin with a thorough examination of your company’s requirements. As a foundation for warehouse logistics, treat this with a long-term perspective, anticipating the installation’s potential for development.

Materials Management and Storage Systems

Also, materials management, or the procedures involved in identifying, storing, and transferring physical goods, is the next key area of work in warehousing logistics. Industrial racks are used for storage in most warehouses. Indeed, the appropriate storage system is determined by the store inventory, the kind of product, the product unit load, and the associated expenses. Automated storage and retrieval systems (AS/RS) have gained prominence in modern warehouses, offering advanced solutions for efficient and automated handling of inventory so this might be an option for you to consider.

Aside from storage, materials management entails a variety of handling equipment that considerably impacts operations running smoothly. Automated systems controlled by software or humanly operated devices such as classic forklifts and pallet trucks handle equipment.

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Picking and Order Preparation

Specific warehouse logistics tactics are heavily influenced by picking operations. These include product movement and extraction from racks, order sorting, consolidation, packaging, and shipment.

Also, one of the most critical aspects of warehouse logistics means organizing the picking and order fulfillment process. Several techniques exist, based on the following factors.

  • Floor, middle, low, or height of the racks from which items are selected
  • Movement of goods: whether the operator travels to the goods in the distribution facilities or the commodities come to the operator via automated systems.
  • Picking methods for various items include batch, order-by-order, wave zone, or pick-to-cart picking.

Managing Stock and Inventory

Stock and inventory management is focused on maximizing the facility’s stock levels. Modern warehouses use software to give real-time insight into the volume of finished goods in storage. 

To coordinate activities, warehouse management systems (WMS) interface with enterprise resource planning (ERP). WMS optimizes location assignments, picking operations, and other processes in addition to real-time inventory tracking and document management. Voice picking and additional data reading and transmission devices connect computer systems.

Warehouse Safety

Different risks during the daily processes expose the logistics employees and the store products. That’s why safety is something that you, as a business owner, cannot overlook when it comes to storage logistics. Deal with it in three areas:

Preventive maintenance: Work in warehouses, and the distribution center entails repetitive actions, physical weight handling, storing products, long periods of standing, and other occupational hazards. A tired operator is prone to human error and is less productive. Doing a job safety analysis (JSA) and providing workers with tools and automatic systems that assist them in performing their activities more comfortably and ergonomically is a good idea.

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Goods security systems: The nature of the stock, as well as the misuse of automatic systems and manual handling equipment, can damage the installation and goods, as well as endanger employees. It is recommended to put signage throughout the building, set traffic regulations, and develop best practices for operating equipment.

Maintenance: It is also critical to do adequate maintenance on the installations and equipment for safety concerns. Ensure you conduct a thorough technical check of the racks regularly.

Logistics warehousing has its own set of organizational norms and specialized areas of work that center around a set of shared goals. Knowing how to grasp this discipline is complex — much more so in today’s logistics world, where unpredictability and changing purchasing patterns are reshaping management and processes. 

Also, we advise you to improve the administration of your installation by consulting experts who can help in fulfilling orders. This will ease transportation costs, provide customers with more affordable shipping costs, and improve your business revenue.

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