A warehouse is a facility for storing goods and materials until they are needed. Warehouses track inventory as it arrives and is dispatched. There are different types of warehouses including public, private, and government warehouses. Warehouse management involves receiving and organizing inventory, scheduling labor, and fulfilling orders. An effective warehouse management system optimizes these processes to increase productivity and reduce costs. Key warehouse processes include receiving incoming inventory, storing inventory, and outbound order fulfillment and shipping. Location, costs, inventory tracking, and safety are important factors to consider for effective warehouse management.

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WAREHOUSE
MANAGEMENT

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WAREHOUSE AND WAREHOUSING
WAREHOUSE is a place where raw material or manufactured goods
are stored until they are exported or distributed to be sold
WAREHOUSIG is the process of storing physical goods or inventory
in a warehouse or storage facility before they are sold or
distributed. Warehouses safely and securely store and protect
products in an organized way, making it easy to track an item’s
location, when the items arrived, how long the item has been
there, and the quantity on hand.

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TYPES OF WAREHOUSE
1) Public Warehouse
2) Private Warehouse
3) Government Warehouse
4) Co-operative Warehouse
5) Bonded Warehouse

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WAREHOUSE ACTIVITIES
 Receive goods
 Identify the goods
 Dispatch goods to storage
 Hold goods
 Pick goods
 Marshal shipment
 Dispatch shipment
 Operate an information system

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What Is Warehouse Management?
Warehouse management encompasses the principles and
processes involved in running the day-to-day operations of a
warehouse. At a high level, this includes receiving and organizing
warehouse space, scheduling labor, managing inventory and
fulfilling orders. An effective warehouse management involves
optimizing and integrating each of those processes to ensure all
aspects of a warehouse operation work together to increase
productivity and keep costs low.

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Functions of Warehouse Management
System
Tracking Stock :-
One of the primary functions of warehouse management systems is the effective tracking
of the stocks that are coming into the warehouse and later dispatched to their respective
places of order. This function gives the manager the perfect insights to measure and know
the availability of stock and exactly when it will be the optimal time for restocking in the
warehouse.
Picking and Shipping :-
The second most important function of a warehouse management system is to look after the
picking and shipping activities of a warehouse. This being said, it means, that the assurance of
the correct product being received and shipping is taken care of by the WMS alone. With the
presence of a manual system, quite often the missing data and inefficient tracking led to the
confusion of missing or wrong receiving and shipping of products.

7. zLayout Design :-
As a warehouse, it is very essential to keep its layout design very much in order. A
warehouse management system helps you to draw your warehouse’s layout design in its
correct way. It enables placing your products within the designed layout in a much more
efficient manner with a logical setting working in its algorithm. The factors that are
responsible for creating this systematic layout design are accessibility, demand, and weight.
This allows smooth operations and looks after a seamless way of managing your products
being correctly placed in the warehouse.
Managerial Information :-
Being one of the biggest fundamentals for making the foundation of warehouse management
strong, WMS is designed dedicatedly to give productive insights. Being a cornerstone to the
transportation and logistics industry, a warehouse management system offers a bountiful of
essential business information that can be accumulated in the form of reports. These reports
are vital for managers who are managing the warehouse to help to analyze the current wave
of operations and locate the improvements that are on the highest priority to be adopted.

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Labour Management :-
Managers can monitor the performance of the warehouse workers using the
key performance indicators. Use of software that provides effective labor
management solutions is crucial for obtaining real-time data about employee
performance and efficiency. So, it is easier for logistic companies to come up
with incentive policies that will maximize employee productivity and eliminate
the problem of workforce shortages.
Order Processing :-
Another critical function of WMS is to oversee the order processing inside the
warehouse. A WMS helps fulfilling products accurately and ensure timely
delivery of products. There is a minimal expense associated with incorrect
stocking of orders and shipment to mismatched clients, hence reducing the
overall cost of warehousing.

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Key Warehouse Process
Key warehouse process must be known to anybody who is
interested in warehouse design or warehouse operations. Broadly,
warehouse processes can be classified as inbound, storage &
outbound.
Inbound is receiving goods in to warehouse and outbound is
dispatching goods as per customer requirement. Whereas, storage
is ensuring goods are stored safely in the warehouse.

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Inbound processes
Pre Receipt Notification, Recording and Tracking
Receipts have name of item, their quantity, Its UOM (Unit of Measurement)
and all the information related to that specific item. Serial no, Lot no,
manufacturing and expiration dates, statuses of various inventory statuses,
rules of default receipt status these elements should be tracked. For getting
speedy inbound process we need to reduce entering the information
manually.

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Load Arrival:-
Most of the companies working in supply chain management plans
preliminary inbound in order to complete every Logistics Service. There is
no possibility for error as the information of all receipts is entered
automatically within few minutes like reserving docks, area to stag,
advance appointments.
Bar Coded Information:-
Barcoding is specifically concatenation of store and register id, date,
transaction incrementor for that specific store or register. With the help of
all the data mentioned hash function has been applied to it and it appears
in the same pattern so that all the data regarding date, store and register
name kept secret.

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Tracking:-
This includes tracking of License Plates of the trucks. RFID Insider
is used for this tracking purposes.
Put Away:-
Put away is finally moving the goods to their destination. It include
serial no and lot no information.

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Receiving Process
1. Delivery/appointment creation.
2. Delivery arrives at DC.
3. Traffic office Verifies Carrier paperwork
and creates receiving pocket.
4. Trailer is spotted to receiving door
and is now ready for unloading.

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5. Trailer and is assigned to an inbound door.
6. Freight is unloaded and staged for receipt.
7. Item is received System generates receiving tags
for each item on pallet.
8. Receipt tags for each item are scanned. Pallets
are hauled to a drop location
10. Pallets are slotted to the location

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Types of receiving
 Single SKU pallet receiving:- In this process single items are received
on pallets and then slotted to their destined slots (Prime or Reserve).
 Multi SKU pallet receiving:- This receiving process provides user
capability of receiving multiple SKUs on one pallet and slot them to one
reserve slot.
 Assortment freight receiving:- This receiving process provides user
capability of receiving Parent SKU's or Child SKU's and sort it down into
child item labels.
 Problem freight receiving:- This receiving process provides user
capability of receiving Problem freight and slot it to a problem area where
this will be handled by the QA group.

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Outbound processes :
Quality Check:
This is one of the most important process in inbound as well
as outbound. Some products have their expiry dates. Hence
this is one of the crucial part of outbound process so that
customer would be able to get best product in case of its
quality.

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Inventory Management
Inventory management is a significant step in the supply chain. It refers to
tracking stock quantities in and out of the warehouse. It tracks inventory
items from order to delivery, and helps businesses figure out how much
new stock to order and when
Sales order:
Sales order is an indication for the customer that he is ready to purchase
products.
Pick and Pack:
Discrete order picking, batch picking, wave picking, zone picking, forward
picking process for TL & LTL shipments, cluster pick, paper based pick and
pack these are some picking methods used for outbound.

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Types of Order Picking
 RF Order Picking:- In this picking process the order filler uses a
RF hand held gun that will direct him on how much quantity
needs to be picked from which slot and where it needs to be
dropped. This is the most commonly used picking method.
 Voice Order Picking:- In this picking process order filler uses a
voice console that directs him through voice commands on how
much quantity needs to be picked from which slot and where it
needs to be dropped. Order picker has to train the voice console
and create his profile to be able to use it. This method is also
widely used for picking

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 Pick by Label:- In this picking method pick labels will be
generated after the orders are released and the labels will have
the pick information that will be used by the order fillers to perform
picking. This method is usually used where the retailers don't have
the RF or Voice picking capability.
 Pick By List :- Here the pick lists are printed on normal Lexmark
type of printers after release wave and the order fillers use this list
to manually pick the items. This method is usually used when any
of the above types of picking is down. Low end retailer who cant
afford to have RF or Voice or Label picking use this method.

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Benefits of a warehouse management system
 Optimized Space and Lower Operating Expenses
 Inventory Visibility
 Effective Labor
 Traceable Materials
 Optimized Supply Chain
 Effective Shipment Management providing better Customer
Service

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Break Bulk Consolidation & packaging
Break bulk consolidation is an ideal service for companies that are
managing products that have components manufactured in different
places. In break bulk consolidation, we receive products from
different manufacturers and repackage them as one product for end
users.

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Factors to be considered for location of
the warehouse
 Rent Rates & Taxes
 Workforce Availability, Labor Skills & Costs
 Roads, Highways & Traffic Flow
 Proximity to Airport, Railway Stations & Ports
 Markets & Local Environment Factors
 Building Availability & Utility Costs

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Factors Influencing the Warehouse
Costing Model
Land and Facility Cost:
The calculation of this cost element depends on whether the facility is
acquired or rented. Cost is worked out based on a per sq ft rental rate
considering the advances, brokerage and security deposits.
Manpower / Labour Cost:
There is a need to arrive at a detailed man-power cost, which must include
skilled and unskilled labour cost, operating staff comprising of in-house
and contracted workforce, management staff, etc. Detailed costing should
consider monthly salary, training cost, bonus, staff welfare, or any other
monetary perks, etc.

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Capital Expense:
Warehouse amenities such as Material Handling Equipment (MHE), Hand
Held Devices (HHD), racks, pallets, office equipment, etc come under the
category of capital expenses. Factors to be considered, apart from the cost
of the amenities, are, the life of the equipment (to determine the
depreciation value), interest percentage on the cost of the equipment and
the annual maintenance cost, to decide the monthly cost of the
infrastructure
Operation Expense:
Operational expenses are not fixed but vary and it recurs, say monthly or
weekly, based on the usage. In this category are electricity and fuel cost,
communication cost, stationery and consumables cost and other incidental
expenses.

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Automated Storage and Retrieval System
An Automated Storage and Retrieval System (AS/RS) is a combination
of equipment and controls that handle, store and retrieve materials as
needed with precision, accuracy and speed under a defined degree of
automation. Systems vary from smaller automated systems to larger
computer controlled storage/retrieval systems totally integrated into a
manufacturing and/or distribution process.
Automated storage and retrieval systems are used in a variety of areas
to support processing and picking throughout a facility:
• Order picking: Retrieving and presenting required inventory to
pickers
• Storage: Providing dense long-term buffering for small or large
items that are slow- to medium-movers

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• Kitting: Providing an area to group component parts for assembly
• Consolidation: Providing a dynamic area to hold parts and items until all
pieces of an order can be merged ready for shipment. Often used for
consumer, B2B and store orders.
• Assembly: Storing work piece components for later production
• Production: Storing tooling and component parts for manufacturing
processes
• Replenishment: Storing excess inventory for restocking of ancillary
picking systems
• Security: Providing an enclosed storage environment with software
access controls
• Retail: Providing a large quantity of parts and items at a customer
service desk. Keeps workers in front of customers instead of walking and
searching in back rooms.

27. zAS/RS environment one would find one or more of the following
technologies:
• Unit-load AS/RS – Machines that store large loads (usually 1,000+
pounds), typically on pallets with storage rack structure, reaching 100
feet or more tall.
• Mini-load AS/RS – Operating the same as a unit-load AS/RS, a mini-
load AS/RS handle lighter loads, usually weighing less than 1,000
pounds
• Vertical lift modules (VLMs) – VLMs consist of a column of trays in the
front and back of the module with an automatic inserter/extractor in the
center that stores and retrieves the required trays
• Shuttles – Shuttles are used for the automated handling of totes, trays,
cartons or all three in the same system – for either warehousing or
manufacturing.

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• Horizontal carousels – Ideal for storing small parts and pieces,
horizontal carousels are comprised of a series of bins that rotate
horizontally around a track.
• Vertical carousels – Rotating vertically, like a Ferris wheel, vertical
carousels house a series of shelves or carriers to provide high-density
storage.
• Cube-based storage – Ultra-high density goods-to-person piece
picking system which utilizes robots to store and retrieve inventory
bins from a cubical storage grid.

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Risks Involved in Warehousing
Theft and Impropriety
As a company that sells physical products, there is always the possibility of
theft. When conducting interviews for your team, be sure to include a robust
background check for each candidate. It’s also good to watch for any
unexplained gaps or termination of employment.
Indoor and Outdoor Security
By their very nature, warehouses are filled with tens of thousands, if not
millions of dollars worth of products. All it takes is a few unsavory
individuals hatching a plan, sneaking in, and helping themselves to the five-
finger discount.

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Natural Disasters: Fires, Floods, Earthquakes, and More
While natural disasters can happen at any moment, there are plenty of steps you
can take to mitigate damage risk. Choosing a warehouse location that isn’t
excessively dry, hot, or close to large bodies of water is wise. It’s also important
to check the natural disaster history in your preferred area, as this can highlight
other risks to defend against, like earthquakes or hurricanes.
Workplace Equipment
Warehouse staff rely on specialized and potentially dangerous equipment to get
work done. Employees should be well accustomed to the tools they use daily.

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