Businesses and companies store their stock of products and goods in the warehouse. They are aware of the fact that effective management allows you to satisfy customer orders quickly and cost-efficiently. It would help you to avoid customer complaints about wrong shipments and delays. Today, we’ll discuss warehouse management in supply chain management; its definition, steps involved in the process, advantages, and disadvantages.
What is Warehouse Management in Supply Chain Management?
Warehouse management in supply chain management is the method of managing the daily operations and activities of a warehouse. It comprises of planning, organizing, and receiving warehousing space, managing inventory, scheduling labor, and fulfilling customer orders. A close analysis of effective warehousing management would help you to see that it comprises integrating and optimizing various processes to make sure the collaboration of various warehousing operations to keep the cost low and amplify productivity.
Some of the key role warehousing management plays in SCM and it is as follows;
- Safe and secure storage
- Strategic location
- Order fulfillment
- Inventory management
- Distribution services
- Value-added services
- Better risk management
Process of Warehouse Management in SCM
Some of the main steps involved in the process of warehouse management in SCM are as follows;
Receiving stock in the warehouse is the first and most significant step in the warehouse management process. The receiving person should make sure that they are receiving the right items of the right quantity, proper functioning, and prompt receiving. Right, receiving would help you to avoid unnecessary expenses. When the receiver recognizes the wrong items that aren’t part of the deal, they send them back to the suppliers during this stage.
As the name implies, put-away is the second stage where you move the received items from the receiving docks to the ideal storage location. Accurate and efficient put-away process would make sure the safety of employees and stored stock items. However, it helps you in the following ways;
- Maximizing space allocation
- Easily tracking
- The low traveling time of products
- Amplifying warehousing experience
It is significant to store the stock items and products at the most appropriate location in the warehouse. You should keep in mind efficiency, space, and safety. In order to employ the optimum usage of your warehousing facility, you should keep in mind the following questions;
- Safe storage in the warehouse
- Temperature control for the perishable goods
- Maximum availability of storage space
- High visibility and easy tracking
- Easy access
Picking is the method when employees find and pick up individual items from the warehouse in order to fulfill customer orders. It is the most significant step in the process and it is responsible for satisfying customer needs and requirements. However, picking is the most expensive and labor-intensive activity in warehousing; optimizing the picking process would help you to improve profitability and decrease errors.
Packaging and packing is the method of preparing and covering the picked items for final delivery to the customers. The objective of packaging is to make sure the safety and damage-free package when it reaches the end consumers. Some of the key elements that you should keep in mind in the packing process are as follows;
- Ideal packaging weight
- Right packaging material
- Precise packing slip
- Know the fragility of items
Shipping is the final stage when the finished product leaves the warehousing facility. It is the final step in the warehousing process where you make sure that you are employing the right transportation method to deliver the final products to the end consumers.
Advantages of Warehouse Management in SCM
Some of the main benefits and advantages of warehouse management in supply chain management are as follows;
- Optimize the usage of the warehousing space to amplify the inventory storage
- Making inventory easy for all employees to find it
- Making sure sufficient staffing
- Fulfilling orders efficiently
- Coordinating communication among transportation companies and suppliers
- Offering high-quality services at a low cost
- Strengthening relationships among customers and suppliers
Disadvantages of Warehouse Management in SCM
Some of the main challenges and disadvantages of warehouse management in SCM are as follows;
When you are analyzing various warehousing operations, then it leaves a margin for error and mistakes. Limited visibility and transparency would result in the form of inaccurate inventory, improper usage of space, and overstocking.
Unoptimized warehousing processes have got limited progress of activities and a probability of inefficiency. Delayed processes would not only disrupt the warehousing operations but also decrease the customer satisfaction level.
If the warehousing staff receive, store, or ship the wrong items, then it would jeopardize the product. Accumulated damages are highly expensive to the growth of the company, negative reputation, and bad customer experience.
Various factors play a key role in the supply and demand of the product like economic circumstances, holidays, seasons, and weather cycles. It is difficult to have the right and exact information about the supply and demand of particular products and goods.
Conclusion: Warehouse Management in Supply Chain Management
After an in-depth study of warehouse management in supply chain management; we have realized that warehousing management is highly significant for your company’s success. If you are learning about warehousing in SCM, then you should keep in mind the abovementioned elements, steps involved in the process, advantages, and disadvantages.
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