Ultimate Guide to Warehouse Management

If you are a warehouse manager or director, you must be a pro at dealing with details. Knowing where your equipment is at all times seems impossible. Scanning equipment takes a long time. And as the cherry on top, your team sometimes packs the wrong items!

With warehouse management, you can tackle these challenges, making your warehouse run smoother and more efficient.

In this article, we will teach you how to master warehouse management, and with that, unlock the secrets to running a productive rental business. More specifically, these are the topics that we'll cover:

1.  What is warehouse management?
2.  Difference between inventory, stock and warehouse management
3.  Types of warehouses
4.  7 key warehouse management processes
5.  How to optimize your warehouse processes
6.  Creative ideas to ‘fun up' the warehouse
7.  Invest in a warehouse management system

As you can see, we've got a lot of ground to cover. But first, let's start with the basics.

So what is warehouse management?

At its core, warehouse management means controlling, analyzing and optimizing your warehouse activities. Think of overseeing your storage, order fulfillment, and shipment of your products.

So what does it mean when you have your warehouse management in check? In concrete terms: You and your employees know where all your equipment is at all times, what its current conditions are and when, where and how items need to be shipped. Sounds great, right?

Wait… what is the difference between inventory management, stock management and warehouse management?

Okay, at this point in your career, you've probably heard of the term warehouse management, but also inventory management and stock management. So what is the difference between these three?

Inventory management involves overseeing the ordering, storage, and tracking of goods within a warehouse. It focuses on maintaining optimal inventory levels, reducing stockouts, and minimizing holding costs.

On the other hand,

Stock management encompasses the handling and control of goods within the warehouse, ensuring accurate stock counts, proper organization, and efficient utilization of space.

Combine these two and you get:

Warehouse management which entails inventory management and stock management while encompassing broader operational aspects of the warehouse, such as order fulfillment, picking, packing, and shipping.

Now we know what warehouse management is, let's dive into the different types of warehouses.

Consider the different types of warehouses to choose from and avoid unnecessary costs in the future

Warehouses can vary in size, layout, and functionality based on the specific requirements of your niche. Some common types of warehouses include:

1. Public Warehouses: Public warehouses are owned by the government and offer storage space and services to multiple businesses on a rental basis (monthly fees). Although they are often not the most technologically advanced, they are the most affordable option. This makes them perfectly accessible for start-ups and small businesses.
2. Private Warehouses: Private warehouses are owned and operated by individual companies, and offer dedicated storage facilities tailored to meet your specific requirements. This type of warehouse will cost you more than public warehouses, but in return will give you more control over the size and layout.
3. Bonded Warehouses: Bonded warehouses are authorized by customs authorities to store imported goods before they are released for local distribution or re-export. This type of warehouse is perfect for companies that are dealing with cross-border trade.
4. Temperature-controlled Storage Warehouses: Equipped with temperature-controlled environments, cold storage warehouses are ideal for perishable goods like food, pharmaceuticals but also artwork! These warehouses can be refrigerated or frozen.
5. Consolidated Warehouses: A consolidated warehouse resembles a public warehouse, although it is owned by a third-party and offers flexible contracts instead of strict monthly fees. This type of storage receives small shipments from various sources and waits until they become big before shipping out. So, they provide a cost-effective solution for small companies with fluctuating storage needs.

Choosing the right warehouse will depend highly on the type of rental business you and your team are running. Is the business just taking off? Choose a low-cost warehouse like public or consolidated.

Need to ship equipment that is sensitive to external factors, such as temperature? Choose a temperature-controlled storage warehouse to make sure the quality of your equipment does not go to waste. For example, if you need to store film, Kodak recommends temperatures of 25°C for black and white film, and 10°C for color film.

Whatever it is, give yourself time to choose the right one, or reach out to other businesses for advice, as moving warehouses can be costly and time consuming.

Once you've made your decision and set up your warehouse, it's time to start thinking about the processes that take place in your warehouse!

Know your basics: key warehouse management processes

Before you dive further into the ins and outs of warehouse management, it is important to understand the basic processes first. The warehouse management process involves a series of activities to ensure efficient operations. Typically, these steps include from start to finish:

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Slotting

Determining the optimal storage location for each item based on factors such as demand, size, weight, and accessibility. In this process, you organize your warehouse to maximize space and efficiency, before you receive your goods.

Receiving goods

When receiving the items, the first step is to check on quality and the right quantity. Take this step with utmost care, as wrong items in your warehouse inventory can be immediately shipped back and not cause any further mistakes in the warehouse process along the way.

‍Putaway goods

The process of receiving and placing goods into their designated storage locations within the warehouse.

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Inventory storage

Most of the time, the received items need to be stored for a little while before being shipped to their (temporary) owner. Therefore, they need to be put in your warehouse inventory before being picked. This should be one of your most strategic actions, as it impacts space utilization, stock control and facilitates demand forecasting. This can break or make your overall warehouse efficiency!

So, our advice would be to digitize your inventory. By implementing inventory management software, you gain real-time visibility into stock levels, automate processes, and generate accurate reports and analytics.

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Picking orders

Time to set sail? When the item is ready to be shipped, it is time to pick it up from the storage location and pack it. For this process, the picker will have to receive a packing slip.

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Packing orders

Packaging the picked items securely for shipping while ensuring accurate labeling and documentation.

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Shipping orders

Coordinate the dispatch of packed items to the intended destination. Unless your business ships with its own vehicles, this often involves carrier selection, such as UPS, DHL or FedEx.

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