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.

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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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 Count Process

Inventory is money, and hence businesses need to perform physical inventory counts periodically to make sure that their inventory records are accurate. The traditional approach to conducting inventory counts is to shut down a facility during a slow time of year to count everything, one item at a time. This process is slow, expensive, and (unfortunately) not very accurate.

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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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Types of Inventory Count Processes

While dealing with lots of inventory in a warehouse, lots of things can go wrong. Shipments may not have the right number of units in them, or they could get damaged somewhere along the supply chain. Discrepancies in the stock may arise as part of every inventory control, and need to be corrected immediately after the inventory control procedure has been finished.

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Miscellaneous Warehouse Processes

At the end of each inventory control, the Contractor provides the Ordering Person with an inventory report which contains a list of all stock adjustments. The Ordering Person uses the report to create, by use of his/her own means, necessary value and accounting adjustments related to the stock. Let us look at some to the mislaneous warehouse processes not covered earlier.

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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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Types of Order Picking Methods in the Warehouse

There are many different types of picking in a warehouse and each one works as a customized solution for each business. Depending on the size of your warehouse and inventory, the manpower you have on hand, and the number of customer orders made each day, there may be certain methods that are more efficient for you than others.

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Warehouse Returns Process

In the normal course of business, customers are likely to return orders from time to time due to various reasons and business should design processes the manage and accept such returns. A well designed returns management process can reduce costs and issues associated with returns or exchanges.

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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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