This document provides an overview of warehouse operations including inbound and outbound processes. Inbound processes include receiving, put away, and storage of products. Receiving involves inspecting shipments and verifying counts. Products are identified through UPC codes, part numbers, or descriptions. Outbound processes involve order picking, checking, packing, and shipping. Order picking involves using product identification numbers on pick tickets or sales orders to retrieve items from storage locations for orders.

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Chapter 3 – Warehouse Operations
Inbound Processes
Receiving
Put Away
Storage
Outbound Processes
Order Picking
Checking, Packing, Shipping
Inbound Processes – Receiving
Although product arrives at random intervals, it is to be unloaded immediately and staged
for put away. Product will be inspected for damage and either accepted or rejected. A signature
will be required for all receipts. Common carriers typically leave a paper receipt, while postal
services (UPS, FedEx, etc.) typically capture an electronic signature. In all cases, the person
accepting the shipment must verify that the number of packages signed for are received.
An additional, more thorough inspection, of product is to be conducted to validate the
shipment received. The person receiving the shipment will look for damage not visible from
initial inspection, verify counts, and take note of descriptions and part numbers used to identify
product.
Product Identification
Product can be identified in one of three ways at the present time; all of which require a
manual inspection of the product received. Regardless of the method used, careful attention is
required by the inspector/receiver to match physical product to paperwork (packing slip) that
almost always accompanies any shipment.
One method, is to identify product by the UPC (Universal Product Code); or more
simply, by the numbers that appear underneath the barcode on most products. When this method
is used, oftentimes it is the last five to six characters that appear here that are used on the
accompanying packing slip.
Another method, is to identify product by its’ part number; not to be confused for a UPC.
Unlike a UPC; which can always be located underneath the barcode, there is no standard manner
in which part numbers are marked (if they are) on the product or its packaging. Typically, a part
number will be preceded by either the words: “PART NUMBER”, “PART #, and/or “P/N”. This
list is not meant to be all inclusive.

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Product Identification – Check Digits
Some items carry a character in their part number that are used to indicate some special
distinction of the product; typically quantity. This is best illustrated by the current inventory of
hose that are kept in stock. The last number of most hoses are either; 0, 4, or 6.
Zeros, are more of a placeholder and carry no real meaning of their own.
A four is indicative of the measurement being twelve and half feet in length.
A six is indicative of the measurement being fifty feet in length.
Product Identification – Empirical Identification by Description
Although this is the third type of identification mentioned earlier, this is a special enough
case to warrant specific guidance. Some products, typically those purchased from another
distributor can be made, specifically and consciously difficult to identify. This stems from the
practice of some vendors to mask their products so that the distributor appears to be the sole
proprietor of a product.
The net effect of this practice is that identifying a product that has been shipped via this
manner can be difficult, if not impossible, to identify. The identifying number/code used on the
packing slip can sometimes be an administrative, purchasing code and might not be present on
the product or its packaging. Care must then be taken to identify the physical product to the
packing list via the description given on the packing slip. This information can sometimes appear
on a label on the product (in whole or in part) or via common sense observation.
An example of such a product: Item Number: PG-EFB30-6IBC; Description: FUSE
BLOCK, 6 GANG W/IND BUSS AGC, 30 AMP W/COVER (5015). This is an item that was
purchased under the Product Number/Code: EFB30-61BC because the vendor identified it as
such. However, that identification is not located anywhere on the individual item or its
packaging. Unless one happens to possess technical knowledge pertaining to the product to
make an identification then the only markings present that assist in its identification reside
within the description: (5015). The characters: “PG” are a vendor code that is explained later
in the text.
Inbound Processes – Put Away
Product must be put away/stored in a storage location; ideally this location will be
predetermined so as to facilitate the retrieval of the product at a future point.
Special care must to be taken concerning the presentation of the pick face; the 2-
dimensional surface (often, but not always, a label) that contains the identifying markings
described earlier. The pick face needs to face outward from the shelf, to assist with the
identification and selection of product.
In cases where an identifying mark either isn’t present or its current location would be
obstructed from view when placed in its storage location; product will then require a manual

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marking with a marker. This marking will now serve as the identifying marking for the purposes
of future identification.
Overstock Locations
While not an ideal status/location of any particular product; the overstock location is a
necessary function/location within the warehouse. This location houses the additional quantities
of product that is not being stored at a storage location. As inventory numbers for a particular
stock are depleted, it is from the overstock location that replacements will first be obtained for
restocking.
As overstock locations are typically located either high above, or on lower shelves below
product, it is important to mark product that has been designated for overstock with its
identifying markings, in a larger and legible manner, with a marker. The purpose of this mark is
to make the overstocked item easier to be identified and found at a future point, so that it may be
used for either restocking or for fulfilling an order.
Another issue concerning overstock locations is space efficiency. In the absence of an
electronic tracking system, product placed in an overstock location must be placed where it is
visible; meaning that different products cannot be stacked behind each other.
Pallet Tags
At the present time there is no standard method for labeling pallets. The purpose of
labeling a pallet is so that the contents of a pallet can be identified and located. At present, the
current convention consists of a brief description of the pallet (ex: Cut Hoses), identifying
markings (UPC or P/N), a quantity of each, and the date.
Currently, two terms have commonly been associated with the date: Palletized and
Inventoried. Although the meanings of each are synonymous, an attempt to formalize the
meanings will be made here.
PALLETIZED – Should be an indication of when the pallet was assembled. While the
word “palletized” is not necessarily required, a date on a pallet tag by itself should carry this
meaning. This term is to indicate a physical action took place.
INVENTORIED – Should be used sparingly and only for the purpose of accompanying
an inventory activity within the warehouse. This term is to indicate an administrative action took
place.
Although it is conceivable for a pallet tag to share both terms, it should not be a source of
confusion, as it is a mere remark.
Storage
The storage location of a product is important because the specific location of a product
determines (to a large extent) how quickly and at what cost it will be to retrieve it for a customer.
This requires managing a second inventory, not of product, but of storage locations. To do this
effectively, it is important to know when storage locations are available, how large they are, how

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much weight they can bear, and any other special handling/storage requirements not otherwise
listed here.
Outbound Processes – Order Picking
On receipt of a customer order either a Sales Order or Pick Ticket will be produced to
guide the order-picking and shipping processes. A Sales Order indicates a brand new order,
while a Pick Ticket indicates that a previous, incomplete order is being filled. A product’s
identification number/code (UPC, Part Number, and Description) will appear on both a Sales
Order and Pick Ticket underneath the Item column of the relevant document.
Order Picking Documentation
It is worth-while to note that a Pick Ticket carries with it an indication of whether or not
there is sufficient inventory of product on-hand to fill an order. This assists the picking process
in that in the event there is not sufficient quantity at the storage location, additional product
might be found in an overstock location.
A Sales Order carries with it pricing information. This information can sometimes be
useful in addressing questions regarding units of measure when filling an order.
Order Picking – Product Identification
At the present time bin locations are not available for referencing product. This requires
that product be identified by the means described in the Inbound – Receiving portion of this
document; UPC, Part Number, and/or Description. Pulling an item by description alone should
be done only with caution, as descriptions can be incomplete and be shared across products.
Although attempts have been made in retaining the original, unmodified product
identification number/codes have been altered to include a vender code on them. At the time of
this writing, Company Name stocks over 1,500 unique products in inventory across more than
50 vendors at its Physical location warehouse location.
Order Picking – Vendor Codes
At present, attempts have been made to retain the original, unmodified identification
markings of product to simplify identification when receiving and pulling product. Only in a few
instances have identification markings been administratively altered.
Hose clamps; for example, have numbers omitted because they are the same across a
significant number of product lines. Cable ties; another example, have characters omitted
because the vendor in which they are purchased from have already altered and relabeled product
with a sticker that retains some of the manufacture’s markings on the package. Stickers can
sometimes fall off or not be applied; in addition to be subject to fading.
Additionally, each of the over 50 vendors previously mentioned have been assigned an
abbreviated vender code that has been affixed to the beginning of all product identification
number/codes. Theoretically two or more products could share the same identification
number/code (as identified thus far)

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The net effect of this system is that pulling an order requires possessing a “vendor map” of the
warehouse. This further requires inventory to be arranged in some logical order. Shelving
product by vendor identification in sequential order is problematic and labor intensive, but is
oftentimes the manner used.
Some product is shelved by utility, or application