What is Warehouse Logistics? How to Manage a Warehouse (2024)

Products ordered online go through several stages before arriving at your doorstep.

Small businesses may need to retrieve goods from storage, manually record the details, pack them, and hand them over to a shipping agent.

But big brands use extensive networks of warehouses, where goods move along shelves, conveyor belts and loading docks, where they are electronically catalogued, stored and prepared for shipment.

Warehouse logistics done right can speed up order fulfillment, reduce costs, and increase profits. Customer SatisfactionOn the other hand, inefficient warehouse logistics can result in delayed shipments, incorrect orders, and damaged goods.

Learn how to streamline your warehouse logistics to avoid issues, reduce costs and improve customer satisfaction. Learn tips and technologies to optimize your warehouse logistics. Inventory controlThis includes picking and packing processes, warehouse operations, etc.

What is Warehouse Logistics?

Warehouse logistics refers to managing the flow of goods and information within a warehouse. WarehouseFrom receiving and storing inventory to picking, packing, Fulfilling ordersThese include inventory management, order processing, materials management, quality control, etc.

The goal of warehouse logistics is to improve warehouse efficiency and Customer Satisfaction Fine-tune your warehouse space and reduce order fulfillment times.

Warehouse Logistics and Supply Chain Management

Warehouse logistics and supply chain management These are closely related but different concepts. Warehouse logistics focuses specifically on the processes and activities within a warehouse, such as receiving, storing, picking, packing and shipping goods.

The scope of supply chain management is broader and includes planning, coordinating and controlling all activities across the supply chain, from raw materials to production, sales and distribution. Procurement Warehouse logistics, delivery of finished products, Supplier Relationship Management, Demand forecastingtransportation, and Reverse Logistics In case of customer return.

Tips to improve warehouse logistics

Effective logistics can make your warehouse operations more efficient and reduce costs. Here are seven tips to help you overcome common logistics challenges and turn your warehouse into a smoothly functioning machine.

Introducing a warehouse management system

a Warehouse Management System (WMS) is a software solution that enhances and automates warehouse management processes. It provides real-time visibility into stock levels, order status, and employee productivity. It is the foundation of a well-functioning warehouse logistics system. Warehouse managers use it to monitor inventory management and devise strategies to improve warehouse logistics, including reducing waste and ensuring safety.

Inaccurate inventory tracking and lack of real-time information can hinder efficient warehouse logistics and lead to stock-outs, overstocks, and incorrect decisions that lead to increased costs. A WMS can help you: Barcode scanningFeatures like automated picking routes and real-time data analytics improve operational efficiency and accuracy.

Popular WMS options include: Oracle’s NetSuite WMS, SAP Extended Warehouse Managementand Blue Yonder WMS.

Optimize warehouse layout and storage

A cluttered warehouse with an inefficient configuration slows down logistics, wastes time, increases labor costs, and creates safety hazards. For example, food distributors may struggle with expired products without real-time tracking, causing financial losses and health risks.

To solve these problems, warehouse managers can optimize their warehouse layout and storage systems. By analyzing the current layout, identifying bottlenecks, and redesigning storage space, efficiency can be maximized. Strategies such as zone picking can be used to ABC Analysis Stock quality grading and use of vertical space through appropriate shelving and racking systems improves storage density and reduces travel time for pickers.

Streamline the order picking process

Technology such as barcode scanners and voice-directed picking tools can help minimize travel time, reduce errors, and improve overall picking efficiency. To streamline order picking, consider implementing picking strategies such as batch picking, wave picking, or zone picking.

• Batch picking. This method reduces travel time and improves efficiency by grouping similar items together and collecting multiple orders at the same time.

• Wave picking. This picking strategy releases orders in waves at predetermined intervals, allowing pickers to focus on specific sets of orders and increase productivity.

• Zone selection. Dividing your warehouse into separate zones and assigning each picker to a specific zone can reduce travel time and allow pickers to become familiar with the products in their area.

Leverage automation and technology

Manual processes and outdated technology can cause inefficiencies, errors, and a lack of real-time monitoring throughout your supply chain. Don’t shy away from automation and technology to address these challenges. Radio Frequency Identification (RFID), Automated Guided Vehicles (AGVs), and Voice Directed Picking provide accurate real-time data so you can track and monitor your inventory levels. Key Performance Indicators (KPIs)Improve processes such as receiving, warehousing, and order fulfillment.

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

Improve warehouse logistics with voice picking solutions Order FulfillmentSporting goods retailers can use a voice-picking solution, where workers wear a headset and give voice instructions on which item to pick and where it is located in the warehouse.

Establish an efficient returns management procedure

Customer returns are common due to product defects, incorrect orders, and dissatisfaction. Returns Management Costs can increase and strain a company’s supply chain. If your warehouse doesn’t have a streamlined process for inspecting, repairing, and disposing of damaged goods, storage costs can increase and inventory discrepancies can occur.

To establish an efficient returns management, Return Policy Clarify acceptable reasons, deadlines, fees, etc. Then, set up a dedicated returns processing area in your warehouse where staff can quickly inspect and sort returned items and determine the appropriate disposition, whether that be restocking, refurbishing or disposal.

Barcode scanning and an integrated inventory management system can help you accurately track returned items, update stock levels in real time, and minimize errors.

Invest in employee training and development

Some companies are outsourcing their logistics third party Investing in employee training is essential for providers, as well as those who manage their own warehouses. Poorly trained warehouse staff can make more mistakes, mishandle perishable items, fail to track stock levels accurately, and increase the risk of accidents.

These issues can be addressed by implementing training programs on safety protocols, material handling techniques, inventory management, proper equipment use, etc. This will help employees reduce mistakes and equip them with the knowledge and skills they need to do their jobs efficiently.

Continuously monitor and analyze performance indicators

Continuously monitor and analyze KPIs such as order accuracy, Inventory TurnoverUnderstanding production, delivery, and timely delivery rates is critical in identifying trends, bottlenecks, and areas of improvement that could otherwise result in inefficiencies, increased operational costs, and challenges in meeting customer demands.

For example, say a business has set an order accuracy KPI of 99.5% but realizes that it’s currently at 95%. To address this, they could implement a barcode scanning system and provide additional training to their staff to improve their accuracy rate.