Overview of Warehouse Processes

The basic function of a warehouse is to store goods. This means that they receive deliveries from suppliers, do any necessary checking and sorting, store the materials until it is dispatched to customers. Traditionally warehouses were seen as places for the long-term storage of goods. Now organizations want to optimize their customer experience and try to move materials quickly through the supply chain, so the role of warehousing has changed.

Given below are the list of activities that are generally included in today's ‘warehousing’

Receiving goods from suppliers.
Identifying the goods, matching them to orders and finding their intended use.
Unloading materials from delivery vehicles.
Doing checks on quantity and quality.
Sorting goods as needed.
Labelling the goods.
Moving goods to storage area.
Holding them in stock.
Moving materials within warehouse.
Picking materials for orders.
Packing and packaging.
Loading delivery vehicles.
Dispatching the order.
Inventory control and finance.

This is a generic layman view of the warehouse process. Now we will look at the same process from warehouse management perspective and do a deep dive into all of the warehouse activities understanding their drivers and industry wide used execution model.

Warehouse Management Work Processes

Warehouse management is one facet of supply chain management. The Warehouse management includes a wide range of sub-processes and activities to support the warehouse facility operating at an optimal level, at any time. Warehouse processes need to be integrated with other business processes such as transportation, manufacturing, quality control, purchase, transfer, sales, and returns. Any store, factory, or distribution center employs eight high-level processes for physical inventory:

Inbound Receiving Process
Inbound Put-away
Warehouse Picking Process
Warehouse Packing Process
Outbound Shipping Process
Warehouse Counts Process
Warehouse Returns Process
Warehouse Labelling Process
Warehouse Staffing and Roles
Miscellaneous Warehouse Processes
Warehouse Reporting

Inbound Receiving Process	When products arrive at a facility, there need to be a defined process to let them in. The process for accepting inventory when it arrives is called "Receiving".
Inbound Put-away	After products have been received and passed a quality inspection, they need to be stored so that you can find them when you need them. This process is called put-away.
Warehouse Picking Process	Order picking is the process of selecting items from a warehouse , to fulfill customer orders.
Warehouse Packing Process	The packing process allows you to validate and pack products into containers. The packaging is intended to provide protection for the item as it is being handled in the warehouse or when the item is being shipped.
Outbound Shipping Process	The final step is to send ship loads out of the warehouse once all the work that is associated with those loads has been completed.
Warehouse Counts Process	Counts are typically done to eliminate mismatches between the system and the actual inventory.
Warehouse Returns Process	A return is the process of handling the return of products from a customer to the distribution center.
Warehouse Labelling Process	Labelling is done to streamline warehouse organization and make sure workers can easily identify every section, rack, and carton.
Warehouse Staffing and Roles	Staffing is concerned with the planning for expected workload and determine the number of resources required to complete each activity.
Miscellaneous Warehouse Processes	Miscellaneous processes to manage the warehouse operations.
Warehouse Reporting	Preparation and availability of right kind of operational and inventory reports across the warehouse for effective control of warehouse operations.

What is the difference between Warehouse Management & Inventory Management?

The terms “inventory management” and “warehouse management” are sometimes mistakenly used interchangeably as they both deal with operations and products of industries. Despite their few similarities, there are many notable differences between warehouse and inventory management systems.

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Overview of Third-Party Logistics

Third-party logistics (abbreviated as 3PL, or TPL) is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services. A third-party logistics provider (3PL) is an asset-based or non-asset based company that manages one or more logistics processes or operations (typically, transportation or warehousing) for another company.

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Warehouse Consolidation

Transport operations are often divided into full load and part load and due to economies of scale, the unit costs are higher for part loads. Our customer needs several part loads delivering, so it can reduce costs by consolidating these into full loads. Then it gets all the part loads delivered to a warehouse near the suppliers, consolidates them into full loads, and pays the lower costs of full-load transport to its operations.

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Outbound Picking Process

When a customer wants a product that has been stored in the warehouse, the same need to be picked off the shelf (or off the floor) and get it ready for shipping. Depending on how big is the warehouse, picking can take a while. (Many distribution centers cover more than 1 million square feet.). Hence, warehouse order picking methods are an important aspect within any warehouse.

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Warehouse Labeling Process

Warehouses can be places where piles of packed or loose products occupy space. If left disorganized, it will become very challenging to identify products for packing or picking. Hence, proper organization of warehouse is very important. Warehouse labeling systems eliminate this problem by making sure products are easily identified and managed during the warehousing and shipping process. Labeling is the most functional and cost-effective way to keep your warehouse organized and operating efficiently.

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Business Case of Multiple Warehouses

Adding extra warehouses to business provides many benefits such as reducing shipping costs, increasing storage capacity, and having warehouses for specific purposes to simplify overall warehouse management. Multiple warehouses allow you to organize your inventory in a way that helps your business be more effective.

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What is a Warehouse & why companies need them?

All organizations hold stocks. In virtually every supply chain, gaps exist between when something is produced and when a customer is ready to buy or receive it. Stocks occur at any point in the supply chain where the flow of materials is interrupted. This implies that products need to be stored during this period of gap.

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Warehouse Packaging Process

Before shipping, businesses need to make sure that the items will arrive in good condition. Packaging is a form of protection against environmental threats that the product will face from the time it leaves warehouse facility until the time it reached the customer. The packaging is intended to provide protection for the item as it is being handled in the warehouse or when the item is being shipped.

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Warehouse Layouts

One of the most important decisions when running a warehouse is its layout. Warehouse layout defines the physical arrangement of storage racks, loading and unloading areas, equipment and other facility areas in the warehouse. A good layout aligned with the business needs could have a significant effect on the efficiency.

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Cross Docking Process

One of the warehousing best practices that retailers like Walmart, Amazon, and Target have adopted is known as cross-docking. During this process the inbound products are unloaded at a distribution center and then sorted by destination, and eventually reloaded onto outbound trucks. In real parlance, the goods are not at all warehoused but just moved across the dock (hence the name).

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