Essentials of Warehouse

Management
STAGES
1. Receiving
2. Storing and Stacking
3. Material Flow and Movement
4. Packaging and Tracking, IT
5. Marshalling and Dispatch
6. Safety
7. Lighting
1.Receiving

Objective:
To receive the right product, in the right quantities, in
the right condition, weight, and dimensions all at the
right time
Steps - Receiving
● All the material flows in and out of the dock
1. Dock Management ● Firm delivery appointments (eg. ASN), quick unloading
times, balance labour

● Transfer of ownership of goods

2. Transactions
● Purchase order details - scanned, verified, accepted

● Easier to measure, stack and track

3. Product Labeling ● Supplier info, quantity, purchase order no., product ID,
description etc.

● Received material is checked for damage

4. Inspection
● Claims made, goods returned
Steps - Receiving

● Rush high-demand items through the receiving process

5. Cross Docking ● Softwares match outgoing orders/factory orders against
scheduled inbound deliveries

● Take corrective actions to drive continuous

improvement
6. Metrics
● Dock to stock time, Receiving errors, Dock Utilization,
Supplier shipping errors etc

● Perform operations such as stock storage, order status,

7. RFID
paper processes, sorting, loading/unloading
2. Storing and Stacking
Four basic kinds of warehouse storage :
Pallet Racking

➔ Most common and essential component of logistical

stock storage and movement
➔ Goods which are delivered and stored in boxes and
requires inventory logging.
➔ The most important considerations with pallet racking are
access/movement, weight, stability and space
➔ Weight limits must be strictly adhered to and all pallet
racking must be inspected and maintained regularly
➔ Aisle space required will depend on specific space
requirements or limitations, Eg Forklift access etc
Pallet Racking
13 main types of pallet racking :

➔ Carton Flow Racking/Carton Live Storage – bays with roller tracks and gradients,
so that stock can roll down and be replaced
➔ Cantilever Racking – Storage utilising beams which anchor at one end, primarily
used for timber, piping, plasterboard and other long loads
➔ Coil Racking – Ysystem of spooling cools, allowing lengths to be cut.
➔ Double Deep Racking – Pallets stored two rows deep
➔ Drive-In Racking – Pallets placed so that they can slide back on a rail
➔ Drive-Through Racking - 2 side access
➔ High-Bay Racking – Racking with racks fixed to the walls and roof for higher storage
➔ Mobile Racking – Racking with sensor technology
➔ Narrow Aisle Racking – A narrower system for increased storage
➔ Pallet Live Racking – Racking with inclined rollers, also known as gravity flow
racking
➔ Push Back Racking – Racking with deeper aisles so that stock can be ‘pushed’
➔ Shuttle Racking – A shuttle is built into the shelving system which moves the pallets
to the back of the aisle
➔ Vertical Racking – Upright storage for long stock, secured by metal arms
Shelving
➔ Stock sits on static shelves rather than mobile pallets, so cannot
be retrieved via forklift.
➔ Shelving is ideal for quick, easy access to stock.
➔ Applicable for small, light items requiring manual picking and
placement – such as agricultural produce, clothing, machine parts
and components and small products. Anything too heavy to carry
alone can’t be stored this way.
➔ Many shelved items need to be handled with care. Height is the
main thing to take into consideration after weight, as high shelves
require ladder access

There are two main types of static shelves:

➔ Short Span Shelving – Better suited to smaller stock items,

although most systems are adjustable.
➔ Long Span Shelving – Larger units with space for bigger items
Mobile Shelving
➔ Used for archiving and data storage, mobile shelving uses
storage shelves fitted with a traction system.
➔ Stock kept in this environment can be kept in closely packed,
compact storage when access isn’t needed.
➔ Smaller premises where space is at a tight premium, mobile
shelving represents an ideal way of making the most of the
available storage space.
➔ Mobile shelving units are on a level track way, with the track
either built into the floor or mounted on top.
➔ A clear definition of the type of flooring in the premises is
needed,to lay tracking which will be stable, remain in place and
not degrade the floor integrity.
➔ Mobile shelving solutions use a locking mechanism on the
shelves to keep them secured.
➔ Manual or automatic mobile shelving system is possible.
Multi-tier Racking
➔ Multi-tier racking is ideal to take full advantage of the vertical
space in the warehouse.
➔ Multi-tier racking systems have different tiers, like floors, to
access stock manually all the way up to the maximum limit of
vertical storage.
➔ This is achieved with a system of mezzanine flooring and stairs,
or scissor lifts.
➔ The storage is very dense, so it’s most effective for large
quantities of stock with a relatively small individual unit size.
➔ Mezzanine Flooring : Construction of a second floor above
existing aisles, which provides extra shelving space, working
areas for staff to pick and pack or check and move stock on.
Storage & Stacking Strategies
Two basic Strategies :

Allocation Strategy

The layout of individual functional areas within the warehouse is determined with the help
of the allocation strategy.

Movement Strategy

Govern the use of storage units for storing, relocating, or retrieving goods. The aim is to
achieve a high degree of efficiency when storing, relocating, and retrieving goods by
skillfully utilizing resources within the available warehouse space`
Storage & Stacking Strategies
Allocation Strategy

➔ Fast-moving goods concentration

➔ Fast-moving goods concentration with dynamic/Static retrieval
➔ Fixed and free storage space allocation
➔ Equal distribution strategy
➔ Storage space adaptation
➔ Single-article and mixed-article storage
➔ Minimizing partial storage spaces
Storage & Stacking Strategies
Movement Strategy

➔ Single game strategy

➔ Double game strategy
➔ Routing strategy
➔ Relocation Strategy
➔ Aisle changing strategy
Material Flow and Movement
•Movement of the units as they enter the warehouse, move
around it, and finally exit.
•Everything that enters the warehouse must exit.
•This flow in a warehouse can be simple or complex,
depending on each company, the degree of automated
systems, the in-house operations carried out with the goods,
the quantity there is of it and the way it is moved.
Simple Flow
Units sent by the supplier are used, without dividing these up.
Medium Flow
Normally found in warehouses with single or combined picking operations.
Complex Flow
Intermediate handling areas and can require various operations that in turn
need flows of a certain complexities.
 ABC Analysis

Classification basis Consumption

A. High rotation: Units enter and exit continuously. These items are in high demand.
B. Medium rotation: Units enter and exit in smaller volumes than in A.
C. Low rotation: Items that spend the most time in the warehouse, and are in low
demand.
Inventory Movement –FIFO method
•Companies operating on the principle of "First in, First Out" first goods received
for sale became the first goods sold.

•Perishable products or units subject to obsolescence, such as food products or

designer fashions, commonly follow the FIFO method of inventory valuation.
Inventory Movement –LIFO method

● Uses current prices to count a measure called "the cost of goods sold," as
opposed to using what was paid for the inventory already in stock. If the price
of such goods has increased since the initial purchase, the "cost of goods
sold" measure will be higher.

● Non-perishable commodities like petroleum, metals and chemicals are

frequently subject to LIFO accounting.
Material Handling Equipment
•Conveyors, Belt and Live roller.
•Automatic Guided Vehicles (AGVs)
•Automated Storage and Retrieval Systems
• Horizontal and Vertical Carousels
•Robotic and Conventional palletizers and de-palletizers
5. Packaging & Tracking

Objective:
Informative and safety storage and tracking for
successful delivery of the product in its orginal
condition.
Packaging Functions for Logistics

➔ Facilitate distribution
➔ Standardization
➔ Protect both product and the environment
➔ Provide information about conditions and locations
Level of Packaging

➔ Primary packaging
➔ Secondary packaging
➔ Tertiary packaging
➔ Group packaging
Tracking Mechanism

➔ RFID (Radio Frequency Identification)

➔ RTLS (Real Time Location Systems)
➔ IoT ( Internet of Things)
5. Marshalling and Dispatch

Objective:
To pick and consolidate items of the order and check
for omissions or errors; update order records.
Package Orders, prepare shipping documents and load
goods on the vehicle
Steps - Marshalling & Dispatch
● Items required from stock selected from storage and
Order picking
brought to marshalling area

● Goods required for order are brought together and

Marshalling checked for omissions or errors; order records are
updated

● Stop defective items at the door

Quality Control
● Improve accuracy and reduce returns

Orders
● ● are packaged,
Lorem shipping
ipsum dolor documents are prepared
sit amet
Update information
Dispatch
system and goods loaded on vehicle
● Sed do eiusmod tempor incididunt ut labore
● Operate an information system
Effective dispatch → Improving warehouse
efficiency
1. To avoid confusion and prevent reporting errors, define dispatch process and
ensure adherence to it ; provision of adequate training to warehouse staff.
2. Picking Lists : Having picking lists ready printed everyday before arrival of the
picking team saves time.
3. Courier Integration : direct integration between the ecommerce platform and
chosen courier(s), can save time that would otherwise be spent on manually
entering tracking codes and delivery addresses. Barcoded labels can automatically
be printed and tracking codes assigned to orders.
4. Improving Picking efficiency : Selecting picking based on area system, zone
system or multi order system.
6. Safety
Safety is of prime importance.
➔ Regulated by a series of standards from the Occupational
Safety and Health Administration system, OHSAS. The
main focus of OSHAS is to prevent work-related injuries,
illnesses, and deaths.
➔ All necessary safety gear should be provided to the
warehouse workers for their safety and health.
➔ They should be trained in proper use and care of the gear.
➔ No unnecessary activity should be permitted in the
warehouse or on warehousing equipment.
7. Lighting
Warehouses and industrial buildings exhibit unique
characteristics: few windows, high ceilings, elevated
shelving, and large floor surfaces. All these factors
require a very specific lighting system that adapts and
conforms to the following needs:
1. Reduce maintenance costs and respect the environment
2. Increase work productivity and operational efficiency
3. Improve workers’ safety, working conditions and overall well being
Lighting
There are four types of lighting commonly seen at warehouses - Fluoroscent (white),
Metal Halides (bluish white), High pressure sodium (emits amber/golden light),
natural light (eg. skylight)

Quantity of light in the vertical plane is important in warehouses when items are
stored on stacks. Good Quality lighting is equally important i.e freedom from glare,
shadows, extreme contrasts, correct direction, distribution and visual fatigue.
Supplementary luminaries in places where tasks such as loading into trailers may
require more lighting.

LED fixtures have become the buzz tool in the lighting industry and they are very well
suited to warehouse lighting. They offer better performance. They utilise 60% less
energy than traditional lighting systems; designed to reduce energy consumption costs.
Thank You