Whether you’re a small business or one with numerous locations, warehouse management is important. Systems and processes pertaining to these areas are critical when it comes to efficiency and customer satisfaction. They are also highly relevant to a business’ profitability and cash flows. Despite this, many companies struggle with warehouse management in one way or another. Through the course of helping multiple companies meet their warehousing needs, Fratogo has seen this situation unfold repeatedly. As a result, the following article highlights some key aspects all businesses should be aware of when it comes to warehouse management.
The Different Between Warehousing and Inventory Systems
Many businesses presume warehousing and inventory management are the same thing. But this isn’t exactly true. A simple way to think of these two management areas is that one is a subset of the other. Where inventory management involves the tracking of all goods from acquisition to the point of sale, warehousing is more specific. Warehouse management essentially involves the receipt, storage, location, and transfer of these goods. Thus, while warehousing is part of total inventory considerations, inventory oversight is more extensive. Inventory considers goods in warehouses as well as those in stores, in manufacturing lines, and in transit.
Understanding these nuances, it is important that companies appreciate the importance of a well-run warehousing system alone. Though this primarily represents the storage component of goods, how these locations run makes an impact. In general, warehousing is about volumes and speed, requiring effective layouts and workflows. Fratogo has helped many companies improve in these areas in an effort to help them function at a higher level. High-volume goods should be easily accessible for picking, packing, and shipping. High-value goods shipped less frequently should be safely protected and serially monitored. Naturally, establishing the best structure and processes for your warehouse takes in-depth considerations. But it is certainly time well spent.
Key Components of Warehouse Management
When it comes to setting up an efficient and effective warehousing system, the first step involves recruiting a quality manager. Not only should companies seek someone with warehouse management experience, but they should also look for one who is savvy with technology and is well organized. In addition to finding the right warehouse management software for the company, they can also assist with layout designs. Unless these aspects are in place, the chances of success are dramatically reduced. These are key aspects of warehouse management that Fratogo consistently pursues as a 3PL services provider.
The other major component of effective warehouse management involves quality workflows and processes. Decisions must be made about the type of inventory tracking to be used. Likewise, cycle counts and routine warehousing audits should be performed in order to prevent theft or loss. Other important warehousing processes include the type of accounting methods that should be utilized. And critically important in today’s world is the quantity, quality, and analysis of the data reported regarding warehouse performance. Businesses that are invested in efficiency and quality will have considered each of these areas of warehouse management in detail.
Warehouse Management Systems
In the modern world, effective warehouse management demands the use of warehouse management software. In many cases, such software is integrated within enterprise resource planning (ERP) software, which can be quite beneficial. But some companies choose to utilize isolated warehousing solutions only. In any case, software can provide many advantages. Companies enjoy real-time storage and inventory tracking data, demand forecasting, and staff productivity reports. Warehouse management software also provides a means for quality improvement, streamlining, and automation. It’s not surprising that the use of these technologies is essentially ubiquitous in today’s business climate.
The benefits that warehouse management software offers are without question. But that doesn’t mean that businesses necessarily need to purchase such software. In fact, warehouse management in general can be completely outsourced to 3PL service providers like Fratogo. In doing so, businesses can reduce costly investments in staff, staff training, and space acquisitions. They can also save costs by storing goods in various regional warehousing solutions, should the have large distributions. Also, 3PL companies tend to have vast networks that can better leverage massive amounts of data to businesses’ advantage. In any case, whether bringing warehouse management in-house or outsourcing it, it’s an area that deserves detailed consideration. As part of overall inventory management systems, quality warehouse management plays a critical role in companies’ success.