Warehouse management objectives
The objective of warehouse management is to optimize a functional area for supply and distribution. At a general level, the objective is based on guaranteeing a timely and continuous supply of the means of production and materials that are needed, in order to ensure uninterrupted services.
Managing stocks, processing orders, and distributing them is also part of warehouse management. His responsibility arises when receiving the units in the facilities and continues during their stay and maintenance in them until their subsequent treatment.
This process ends when the units are converted into orders and the responsibility is transferred to the distribution and management of the same.
The objectives of good warehouse management are
- Speed in deliveries.
- Optimization of the available volume.
- Reduction of transport and handling operations.
- Cost reduction.
What are the functions of the warehouse?
The functions of a warehouse will depend on a large number of business and physical factors, although the main ones are receiving, storing, maintaining and dispatching materials, registering exits and entries, and coordinating the warehouse Safety Barriers with accounting and inventory control.
Warehouse management benefits
- Properly managing the warehouse brings with it a host of benefits:
- Streamlines the development of logistics processes.
- Improves the quality of the product.
- Reduces administrative tasks and process times.
- Optimizes management at the investment level of current assets.
- Increase the level of customer satisfaction.
- Optimize costs.
10 key aspects to carry out for good warehouse management.
The warehouse is a key and fundamental structure that contains functional and physical elements that can provide benefit to the company.
1. The storage system
Storage will mean more or less efficiency. It is important to consider both the available storage space and the number of items that will be housed.
The storage system will directly impact the company’s profits. By reducing the costs associated with space, you save human capital, time, and minimize administrative tasks, which substantially reduces the workload of inventorying a warehouse.
Racks are the cheapest and simplest storage medium when stocks are not very large. The most important thing is that everything stored in them must be correctly identified and that these labels are visible.
2. The reception
This process is followed by any product that comes from a supplier for its subsequent classification, registration in the management system and storage in the facilities in an appropriate way while waiting to be sent to customers.
It must be verified that both the recipient and the content are correct, that the packaging is perfect and that there are no signs of tampering.
3. The cost of storage
Any item stored generates a cost based on its period of permanence, which will depend on the salaries of the department of warehouse management, transportation machinery, supplies, rental of the premises, etc.
4. The inventory
It is about making a physical count of the materials that are stored to compare the records that are kept. The objective of this action is to guarantee the availability of products to customers. Mistakes in inventory management can make the company lose money.
Today’s management programs help to have accurate data and can make predictions about what needs to be purchased.
It consists of grouping or ordering the articles according to their weight, type, dimension or shape. With a good classification, specific codes and locations can be assigned that will provide all the necessary information.
Managing orders quickly and efficiently results in a higher level of competitiveness and, therefore, in a higher volume of sales. The latter improves cash flow by balancing spending and sales.
6. Type of stored products
Since not all products have the same rotation or the same value, it is necessary to establish an effective system with which to prioritize them. One of the most popular codes is ABC.
- high-value products with low turnover.
- valuable products with a moderate turnover.
- low value products with high turnover.
Depending on the type of product, the A’s have a great impact on finances, so it is not good to have a large quantity stored, and the C’s must be monitored to avoid stock breaks.
Control is very important in warehouse management, since it encompasses all the storage, reception and movement processes within the warehouse management department.
8. Functions and objectives
It is important that an efficient flow of materials is achieved in the warehouse Safety Barriers and that it is really effective. Good design is essential for this.
The warehouse must be designed based on the product to be stored and the demand it has. But you also have to take into account the handling system, the production time, the arrangement of the items in the warehouse, the customer service, the offices that are required, how the aisles should be and the economy of scale. In the next post we offer you several tips to design the warehouse layout.
It corresponds to a tactical and strategic process, since it must provide solutions in terms of resources and must be aligned with the general objectives of the company and its policy. In this way, its competitive advantages will be enhanced.
In short, the management of the warehouse Safety Barriers supposes a great amount of benefits for the company and, for this reason, it is necessary to provide it with enough personnel and space to be very effective.