Before the goods reach the customer’s hands, their place is in the warehouse. Efficient management of this space is necessary for the proper functioning of the entire enterprise. The rules for accepting, storing, completing, moving and recording goods are determined by the warehouse management. How to manage it well?

Warehouse management – definition

According to the online Encyclopedia of Management, warehouse management is “the activity of an enterprise, the aim of which is the proper storage of material goods to secure the functioning of the enterprise “. This short definition covers a wide range of ways to logistic warehouse management.

The main goal of warehouse management is to create appropriate conditions for the constant supply of production, the complementation of materials for consumption, as well as the shipment of ready-made products. According to Z. Dudziński, the author of the Vademecum of warehouse management , optimal warehouse management should ensure the greatest effect with the least amount of work .

Efficient warehouse management – addition or necessity?

One of the pillars of a trading company is an efficient supply chain. Without it, the company does not fulfill orders on time, becomes disorganized, and employees cannot perform their duties properly. In turn, the operation of the supply chain is influenced by the logistics used in the company. It consists of numerous processes and activities, and one of the most important is warehouse management.

From the above list, the most important conclusion for the entire article emerges: warehouse management in a company conducted in accordance with the principles of logistics affects the efficient and smooth functioning of the entire company . Proper storage affects:

• organization of the entire company,
• speed of delivery of goods to recipients,
• completing and issuing orders in accordance with customer requirements,
• costs incurred in trading in tangible goods.

How to manage warehouse management – principles of logistics

The term without which warehouse management could not exist is logistics. It can be defined in several ways, but the key assumption is to meet the market requirements with a minimal financial contribution. This applies to the flow of material goods in all phases of this process – production, distribution or purchase.

Warehouse logistics is therefore defined as a set of activities related to the flow of goods through the warehouse . Proper warehouse management, using the principles of logistics and economy, allows for:

• warehouse management in such a way that the quantity of goods ensures the continuity of production, but does not generate excess storage costs,
• accelerating the flow of goods through the warehouse, as well as between individual sectors of the enterprise,
• identification and savings in terms of warehouse operations,
• error-free order picking, which will improve the service of the company’s customers,
• efficient shipment of finished products,
• fixed costs of employee maintenance.

Warehouse management is therefore a multifaceted activity for the benefit of the warehouse, employees and the entire company.

How to make warehouse management run properly?

In order to effectively conduct warehouse management and achieve all of the above benefits in the company, it is necessary to approach the problems logistically in three areas:

1. Procurement – receiving material goods from suppliers, temporary storage and issuing them for production.
2. Production – distribution of materials to individual production departments.
3. Distribution – storing finished products, assembling them into sets and directing them to recipients.

The exact definition of how to efficiently manage your warehouse management depends on the nature of your business. Along with the company profile, the size and type of stored materials (their requirements in terms of maintenance, length and storage temperature) differ.

However, there are universal rules that should be followed when managing your warehouse:

• maintaining an appropriate level of stocks,
• introducing modern solutions to improve the organization of work,
• reduction of transport costs,
• use of the largest possible storage capacity, i.e. for the storage of goods and materials,
• fulfillment of correctly completed orders on time, error-free deliveries and correctly issued invoices,
• good use of warehouse space – division of the warehouse into zones,
• advanced warehouse infrastructure: computing devices, packaging devices, software, means of internal transport (modern forklifts, etc.).

Utilization of storage space

No warehouse could exist without the usable space adapted to it. Proper use of this space is important for warehouse management, i.e. the maximum use of the available space . Each square meter costs the enterprise. At the same time, too small a space limits the amount of stockpiling.

Currently, the warehouse infrastructure offers many opportunities to use the space in the warehouse and to improve the warehouse management. Mezzanines, work platforms and high storage shelves increase the space for storing goods . If the warehouse is of an impressive size, mobile and sliding racks will be perfect.

The storage space is used not only for storing materials, but also for moving them. This is done by means of internal transport such as forklifts and pallets adapted to them. When planning the equipment of the warehouse space, you cannot forget about the correct layout of transport routes .

Modern solutions in warehouse management

Technical means for handling and storing goods in a warehouse today use more and more technological achievements. Modern solutions in the field of warehousing can be applied on a larger scale, using IT warehouse management systems . One of the ways to automate warehouse processes is to implement vending machines .

Warehouse vending machines are used to distribute items such as:

• personal protective equipment (masks, protectors, ear muffs, helmets, ropes, glasses, etc.),
• Workwear,
• tools (the so-called intelligent tool shop),
• consumables.

The machines give full control over the warehouse management in a very simple way: all data about products and their categories, inventory or demand for the goods issued are saved in the application cooperating with the machines. The software also allows you to configure the access of individual employees to specific goods, accelerate the flow of goods, as well as automatic records .

Warehouse management personnel receive immediately generated reports and can easily monitor the consumption of items in manufacturing companies . Thanks to this, they better plan future expenses and assortment.

As shown by examples of case studies from warehouses that focus on modern warehouse management, machines for the storage of health and safety products and tools allow you to reduce costs related to supply , constant access to goods and better management of the warehouse space.

Source materials:

Management Encyclopedia. Warehouse management

https://mfiles.pl/pl/index.php/Gospodarka_magazynowa 

 

FAQ:

What is warehouse management? 

In the company, the warehouse is a place for gathering resources and storing temporarily unused goods. Warehouse management allows for logistic management of processes related to these goods.

What is the purpose of warehouse management? 

The aim of logistic warehouse management is to streamline the supply chain with the lowest possible financial outlays, which will have a beneficial effect on the functioning of not only the warehouse, but the entire enterprise.

Is it possible to achieve savings thanks to proper warehouse management?

Yes – for example thanks to modern vending machines for warehouses, which allow you to reduce expenses on the distribution of material goods to employees by as much as 50%.