WAREHOUSE OPERATIONS AND OPTIMIZATION | Seven value-added warehouse activities:

In this blog, we will talk about the warehouse and its importance. Further, our focus will be on fundamental warehouse activities. In addition, we will look at how these activities can be carried out to improve not only the efficiency of the warehouse but also the efficiency of the entire supply chain and achieve higher order fulfillment rates.

Hello, I am Rashid and in this blog, we will discuss the various activities of the warehouse. And we will see how these warehousing activities optimize the entire supply chain process. 

Why are warehouses necessary? For example, the gadget that you currently have in your hand, was there a need for the warehouse when it was created?

Yes, absolutely. Each part has its own journey. All the parts used in it must have been stored in some warehouse at some point. Warehouse is very important in production. Due to the warehouse, we can store, ship, and further distribute the parts, components, and products from one single location. Apart from this, it also helps us to manage our inventory. If there are the right number of locations and warehouses in your logistics network, it also helps to minimize your transportation costs.

7 Value-added Warehouse Activities:

The following are seven value-added activities that take place in the warehouse.

Seven value-added warehouse activities, Warehouse Operations

S.no.	Activities
1.	Receiving
2.	Pre-Packaging
3.	Put-away
4.	Storing
5.	Order Picking
6.	Packing
7.	Shipping

Receiving:

This is the first process that takes place in the warehouse in which the goods are received in the warehouse. These processes include physically receiving the materials, inspecting the material (quantity and damage), and checking its compatibility with the purchase order (We have to check whether we have received what we ordered and we do this with the help of the purchase order). Apart from this, identification of the goods and their delivery to the destination, and the most important task, preparing a receiving report.

Warehouse Inventory Receiving

How to measure the cost of receiving:

• The cost of receiving can be found in the formula given below.

Cost of receiving

How to calculate the receiving efficiency:

• The receiving efficiency can be found by the "Inventory received per hour".

How to calculate receiving cycle time:

•  Receiving cycle time can be found in the formula given below.

Receiving cycle time

Receiving labor productivity:

It can be calculated by the "volume of goods received per warehouse employee per hour."

Method of optimizing the receiving process:

• We can optimize the warehouse receiving process by receiving materials correctly and efficiently. We must prevent the accumulation of different consignments at the receiving docks.

Pre-Packaging:

The second important process of warehousing is the pre-packaging process. When the consignment is received in bulk quantity, they are packaged later in smaller quantities or consumer size or combined with other products to form kits or assortments.

Put away:

The third process of warehousing is the put-away process. The process in which we remove the goods from the place where they were received is called the put-away process. For example, removing goods from the dock. It also includes transportation or placing of materials in a specific storage area. Finally, recording and identification of all movement of where the materials are placed. Basically, it takes into account warehouse capacity and priority. Put away determines how efficiently our inventories are stocked and how easily it is accessible.

Inventory Put-away

Measuring the cost of put-away:

• The cost of this process can be ascertained by the methods given below.

Measuring Put-away cost per line

Measuring the put-away accuracy:

• The accuracy of this process can be ascertained by the methods given below.

Measuring the put-away accuracy

Measuring Put-away productivity:

Put-away productivity = Stock per warehouse, employee per hour. 

Storing:

The fourth and most important process of warehousing is the storing process. Storing refers to a process in which materials are stored in their most appropriate storage area from the time of production to the time of consumption or putting items under warehouse control. This can maximize the space utilization within the warehouse.

Warehouse Storage

You can store more products or components if you have properly managed your storage area. This allows you to stock more goods at a time, which helps you to give the best service to your customers.

Order Picking:

The fifth process of warehousing is the order-picking process. Order picking is the warehouse process that refers to collecting the required quantity of exact products to fulfill one or more customer orders. 

By improving this process, we can control the cost to a great extent because it is the most expensive process of warehousing. This will not only increase the efficiency of the warehouse but also increase the efficiency of the entire supply chain.

Packing:

The sixth process of warehousing is the packing process it is the key process used to fulfill customer's orders. In the packing process, warehouse officials consolidate picked items according to a sales order or delivery note and prepare them for dispatch to a customer. The packing process consists of choosing appropriate packing materials along with a suitable container to pack the product. During packing, the package is weighed and its labeling is also done. During the packing process, full care is taken to ensure that the goods do not get damaged while leaving the warehouse.

Shipping:

The final stage of warehouse processes. The process of sending outgoing shipments of products from the warehouse to the customer is called shipping. This process will be considered successful only when the delivery item reaches the right customer at the right quantity, at the right time, at the right address, and in the right condition. For this, it is necessary to choose the right mode of transportation and a trusted delivery partner.

Conclusion:

In this blog, we have looked at what activities happen in the warehouse that increase operational efficiency and overlay the approach for a more responsive supply chain. These warehouse activities play an important role in the smooth functioning of the supply chain in various industries. From receiving and storing goods to shipping, warehouses act as the backbone of effective logistics management.

Frequently Asked Questions (FAQs):

Q.1. What are the warehouse activities?

Warehouse activities include many tasks that relate to the storage, handling and movement of goods within the facility. By optimizing these processes, you can streamline your warehouse operations, minimize costs and errors, and achieve higher order fulfillment rates.

Q.2. Why are warehouse activities important?

Warehousing delivers a dominant location for businesses to store, manage, and distribute their goods to end customers. It decreases the costs of obstacles involved in inventory monitoring and management, as well as reducing recruitment requirements and functioning costs.

Q.3. What role does technology play in warehouse activities?

We use difference tools; one of the most important tool we use for real-time visibility is Warehouse management systems (WMS).

Q.4. What challenges do warehouses face in their operations?

Challenges in warehouse management includes, such as inventory inaccuracies, unnecessary handling of goods, and changing in customer demands.