Warehouse Components

At a high level, the essential elements in a warehouse are an arrival bay, a storage area, a departure bay, a material handling system and an information management system. As part of the process for enabling a warehouse layout, you must define warehouse zone groups, and zones, location types, and locations.

Zones

Zones are logical or physical grouping of locations within a warehouse. A warehouse is divided into multiple zones based on its attributes, like package type and velocity codes. A Zone classifies a set of locations that share common properties. Inventory for a SKU is either stocked in a specific zone or in multiple zones and locations. A zone enables defining constraints for put away, retrieval, and picking of SKUs in the warehouse. For example, case storage and unit storage make separate zones. Camcorders are stored in the lock and key zone, while television sets are stored in the bulk storage zone.

Zone Groups

Zone Groups are logical or physical grouping of zones within a warehouse. Consider factors such as the physical characteristics of a particular area. You must consider the physical layout of the warehouse, both to determine storage capacities and to achieve optimal warehouse processes. For example, there might be areas where you can use only a certain type of forklift truck. Or, if your company has products from two competing brands, within the same facility, you might want to use the single warehouse but logically and physically separate the two operations by creating two zone groups.

Location Types and Profiles

Locations types define the logical or physical grouping of the warehouse locations. For example, you can create a location type for all staging locations. Location profiles are the grouping of locations that have the same warehouse location process policies. For example, items to which the same physical capacity constraints apply.

Locations

Locations are the actual physical space used to track where the on-hand inventory is stored and picked in a warehouse. Distribution centers often have thousands of locations, all controlled by a warehouse management system . Because products have different characteristics (dimensions, weights, and so on), dividing your locations often makes sense. While defining the zones, location types, and so on, one should consider how different areas in the warehouse are used for different processes.

Location Stocking Limits

Defines the physical capacity to carry the inventory. For example, if some locations within a warehouse can hold only one pallet per location, location stocking limits can be enabled.

Fixed Picking Locations

Multiple fixed picking locations can be used within the same warehouse and for product variants.

Fixed Packing locations Multiple fixed packing locations can be used within the same warehouse and for managing packing for various product variants.

Distribution Network Planning

To stay competitive in today’s tough market, the location of your warehouse is vital. To grow retail business need to offer to customers faster and affordable shipping time, which is dependent on the warehousing location as the location of the warehouse affects the transit time to ship orders to customers.

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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". Any warehousing operation must be able to receive inventory or freight from trucks at loading docks and then stow them away in a storage location. Receiving often involves scheduling appointments for deliveries to occur, along with unloading the goods and performing a quality inspection.

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Warehouse Staffing & Roles

Resource Planning is the process of planning for expected workload and determining the number of resources required to complete each activity in the warehouse. There are many types of warehouse positions, and they also vary by the employer, the scale of operations and location. Discussed here are generic positions applicable to warehouse management processes.

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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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Inbound Putaway Process

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 putaway. The spot where you store a particular product is called a location. One section of a warehouse might have small locations for light items; another area may have large locations on the floor for heavy items.

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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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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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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 Management

Warehouse management and distribution logistics involve the physical warehouse where products are stored, as well as the receipt and movement of goods takes place. Warehouse management aims to control the storage and movement of products and materials within a warehouse. These operations include the receipting of inwards goods, tracking, stacking and stock movement through the warehouse.

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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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