The market is constantly evolving with a competitive global business scenario. As a business, it is essential to find innovative ways that deliver value to their customers at all times. The market dynamics are changing with competitors in interest, and changes must be made in terms of product, cost, services, and quality. This has paved the way for logistics management with advanced and effective systems compared to the current solutions. Recent decades have witnessed the shift where logistics are required even for small and medium scale businesses.
What is warehouse management?
The warehouse is defined as an important component of the basic logistics process, which includes activities in the field of supply management or the organisation of import and export. In other words, the entry and exit of goods in the organisation. Warehouse logistics is one of the directions of the general theory of logistics, which solves the problems of organising a warehouse, forming a system for receiving, accounting, and placing stocks in a warehouse. It thus includes all the varied and complex factors – organisation, movement, and management – involved in the warehouse.
Having a warehouse management solution ensures that an organisation can effectively look into enterprise resource planning to manage inventory in real-time based on inbound shipments and the latest orders. Warehousing services such as storage and logistics are essential as it brings in additional profits by creating a system with a flow of information. Improving logistics management requires efficient collaboration between multiple teams throughout the entire organisation’s supply chain. Collaboration enhances visibility and helps understand how different systems work, and the entire supply chain can be treated as a single unit.
How does warehouse management work?
It is important to have optimum warehouse management for warehousing services. A warehouse management system involves a list of operations that involves running day-to-day tasks to improve the operational efficiency of staff, inventory, equipment, and safety with shipments and other stocks present in the vicinity.
A warehouse management system gives your operations the tools to optimise efficiency, giving you more time to plan and understand your supply chain logistics. Warehouse management systems are available as stand-alone solutions or larger systems such as enterprise resource planning (ERP) and supply chain management (SCM).
An integrated system combined with traditional management tools creates warehouse-wide synergies to improve logistics from inventory receipt to shipment. Indeed, warehouse management is a safe way to improve warehousing services and a must in a modern warehouse.
An effective warehouse management system provides better inventory control and management, which means you can keep your items safe and avoid product degradation, theft, or accidents. And that’s a fundamental step to offering the best warehousing services. Understanding your existing warehouse and logistics is essential so that you can recognise the lack of functionality when choosing a new system.
To succeed in today’s e-commerce world, you need to ensure your sales channels and markets sync with your warehouse process and inventory management. As companies grow and their warehouse operations become more complex, it becomes more and more important to ensure that order pickers can match products optimally.
What is inventory management?
Inventory and its management deal with the stock supply and demand; it tracks the inventory at all times to estimate the sale of the goods. Inventory management ensures that goods are available, depending on the market demands. It helps ensure that there is always enough stock to fulfil customer orders.
An organisation must have a fully functioning inventory management system to limit the chances of running out of stock.
It involves storage goods handling. Once the items are sold, the inventory performance results in revenue; therefore, it’s important to strategically plan the inventory to offer a consistent cash flow and not end up being a liability. A good management system helps keep track of best-selling items and helps identify the low-performing assets. This allows managing the stock based on importance to avoid wastage and losses.
How does it operate?
An inventory management system is responsible for maintaining detailed records of every stock that leaves or enters the warehouse; this helps keep track of the product flow. Inventory management is an important function that coordinates and controls the flow of goods needed to run a business. Simply put, inventory is a commodity owned by a business that it intends to sell. For example, if you are a clothing retailer, products become inventory when you purchase shirts, dresses, suits, and accessories from your suppliers.
In inventory management, goods are delivered to the receiving area, usually in the form of raw materials or components, and placed in storage areas or on shelves. The systems track stocks of goods, sometimes across multiple warehouses. The management software can keep track of serial numbers, expiration dates, and other important inventory information.
Types of inventory
There are different types of inventory based on the product and industry type. Raw materials, work in progress, finished goods, packaging materials, service inventory, excess inventory, and much more. The product type and purchasing trends can be understood and improved with warehousing services such as inventory management.
By using these types of compact systems and by applying technologies that enable optimal inventory tracking and control, warehousing services and efficient distribution activities help create value in the supply chain. Warehouse management techniques allow an organisation to improve its positioning in the market by streamlining processes, improving customer experience, building structured stock management competitively, increasing flexibility and responsiveness. Warehouse management systems are not just an inventory management system; they take control of the entire warehousing services, from inventory control and management to order fulfilment.
Benefits of having a management system
Improving cash flow – inventory management can help to spend on items that sell; this helps keep the cash flowing and avoid any wastage with unsold stock. It also helps to identify the areas affecting the product’s performance by making necessary improvements to the product handling methods.
Space management – The warehouse management system not only minimises the need for safety stock but also regularly improves the available space in the warehouse by systematically and efficiently identifying products in terms of receiving, packing, and shipping areas. Ensuring the actual use of storage space avoids additional costs associated with overstocking.
Your warehouse layout should facilitate the logical flow of inventory, from receipt and inspection to picking and packaging, to ensure operations are completed quickly and smoothly. The cramped and congested layout makes it difficult for inventory management personnel to access and leaves little room for critical processes such as receiving, increasing the risk of human error.
Quality products – A robust warehouse management system enables organisations to deliver the best quality products and services in time to their customers. When customers are given timely delivery, it helps improve customer engagement as warehouse management keeps track of products while they are on route to be delivered. Ensuring product safety also builds trust, and customers will be naturally inclined to do business with your organisation.
Ease of product/stock handling – This task is especially challenging when an organisation needs to manage thousands of SKUs spanning multiple warehouses. Effective management aims to effectively manage the movement of materials in warehouse operations. Warehouse processes are concerned with the internal movement and storage of materials within a warehouse are guided by inventory systems. Warehouse managers are also responsible for ensuring that racks or pallet racks are available to protect inventory, maintaining product quality during storage until they leave the warehouse.
In the digital world, to manage these processes in both directions, warehousing services have inventory systems, a combination of software tools that simplify everything from placing an order to delivery to the customer’s door. Whether you choose self-storage or rent a warehouse, you can find inventory software or apps that easily manage and track your inventory and reduce the time it takes to conduct inventory audits. It’s best to buy a fully integrated process if you want to manage your inventory across your entire business ecosystem. Warehouse management is essential to keep track of the products your business has and maintain optimal levels to fulfil customer orders quickly.
Vahak is an online marketplace that understands these problems and helps connect organisations and marketplaces with logistics providers to ensure their business is never delayed. With the Vahak application, warehouse management systems can effectively track the status of their shipments and make sure that your customers receive their orders on time. With a wide network spread across India, get your shipments delivered to you and your customers efficiently without any hassle with Vahak. Click here to download the app and get started.