Warehousing: Prerequisite in Supply Chain

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Warehousing: Prerequisite in Supply Chain

“Trade isn’t about goods. Trade is about information. Goods sit in the warehouse until information moves them” -by C.J. Cherryh.

Warehouse is an organized space for the systematic storage and handling of goods & materials. We can use the words “warehouse” & “distribution center” conversely. Warehousing & Warehourse Management are part of the logistics management system, which is fundamentally part of the Supply Chain. Warehousing plays an essential role in the supply chain process. A warehouse is the spacious place for the storage or accumulation of goods. Storing goods throughout the year and freeing when they are required creates time utility.

The past few months have been unrivalled in the supply chain world. It’s not just that the ongoing global pandemic has put uncovered the twist and vulnerabilities of modern supply chains. There has also been unparalleled media attention paid to supply chain management. Learn Transformation will reveal Warehousing in Supply Chain Management.

What is Warehousing?

Warehousing is explained as gripping of responsibility for the storage of goods. With storage of goods all over the year & freeing them as and when they are required, warehousing generates time utility. Warehouse management is necessary to keep up an organized, uninterrupted flow of materials & goods from source to point-of-use. Since it’s such a condemning activity, warehousing knowledge is vital for anyone involved in supply chain operations. Raw materials from suppliers come across the warehouse, so all the information regarding where these goods have to go should be available, and then they hand over to the distribution chain to the customer. A warehouse is an active operation and can deliver a more beneficial return on investment than many people realise.

The warehouse is going through a huge transformation – thanks to technology. Efficiency & speed are pushing organizations to boost their warehousing capabilities.

Warehousing: Prerequisite in Supply Chain

How Warehouse Boosts Companies Profitability?

  • By growing investment stocks. For instance, products like coffee, where prices differs on a global scale, and stock can be gripped to be sold when the price is favorable.
  • By housing buffer inventory to smooth out variations in supply and demand. This is crucial for companies to maintain good customer service. Satisfied & happy customers bring repeat business with lower costs & more profit.
  • Warehouse assists in the efficient use of capital & labor within manufacturing & supply units in the organization. It permits a company to buy and stock more supplies when prices from the supplier are more favorable.

      Automation Impact on Warehouse

      Modern age warehouse is helping as a laboratory for the introduction of innovative Supply-Chain technologies. Automation is modifying virtually every aspect of warehouse management & distribution center operation. The age of e-commerce demands unparalleled levels of efficiency & speed of order fulfillment. Technological advances which have impact on warehouse:


      Robotics is having the most direct impact on the human workforce. The quick adoption of robots throughout the warehouse management system has led to keen cutting in staffing. The exposure of “cobots” has developed an environment where humans & machines work side by side, each attending to its natural strengths.


      RFID stands for Radio-frequency Identification, which uses electromagnetic waves to track objects in real-time. An RFID tag is attached to a product and can be monitored throughout the whole product lifecycle from a central database. Pros of using RFID over other identification techniques such as barcodes are that there is no need for a scanner, and it doesn’t need proximity or line of sight to the object. This assists to monitor the position & movement of inventory in the warehouse from a central location. It also assists to improve the accuracy of operations, specifically when integrated with other automated solutions such as automated picking leading the organization towards a successful digital transformation.

      *Artificial Intelligence:

      Artificial intelligence assists to optimize storage & revival. Systems driven by A.I. can report for several factors, to the point where the logic of placement might not be evident to the human eye. 

      Hand-picked for you: Artificial Intelligence will play vital role to turnaround any Business

      *Electronic Data Interchange (EDI):

      It is the concept of regular data transfer & synchronization between business partners and different verticals within a company. EDI helps to scale automation by automating transactions that happen regularly or according to rules. It reduces mistakes & errors in transactions and removes the need for data validation. These benefits help reduce the cost of doing business, boosts the speed of processing and support omnichannel commerce.


      Drones are used in many applications, and the technology is seeking its way to warehouses, too. In warehouse operations, drones are experimental & have shown notable potential for enhancing warehouse operations. Drones can be used to manage inventory and, less frequently, to pick some types of products in a warehouse. They can be used in existing warehouses without notable modifications and thus help to reduce the capital costs needed to implement new technology in transformation.

      Warehousing in Supply Chain Management

      Warehousing is an essential function of Global supply chain management, but often missed.

      1. Digital Warehouse

      Digital warehouse-design approach allows manufacturers experiment with various workflows, floor plans & other variables to assess the entire impact virtually. Benefits of Digital warehouse comprises considerable savings in operating expenses from productivity improvement. Using this, operations leaders can visualise the impact of changes in a wide range of factors, including order and shipment profiles, frequent demand and supply variations, automation choices.

      2. Manage KPIs

      You can’t manage the thing which you don’t measure, the same is quite pertinent for managing warehouses. Warehouse managers require to ensure precise tracking of Key Performance Indicators (KPIs) like demand forecast, inventory turnover, inventory accuracy, fill rate, etc. to deal with inefficiencies. Manufacturers can also place relevant metrics to define particular performance goals & share that information with stakeholders to get a detailed understanding of what they need to work toward. By ensuring these particular measures are in place and providing consistent feedback, it can assist improve productivity & remove supply chain management inefficiencies.

      Check out the Video

      3. Lean Warehousing

       In the context of warehouse management, the notion is to remove those wasteful processes that consume resources but do not add any additional value. Lean warehousing is the comprehensive concept aimed at tackling improvement opportunities across the supply value chain. Lean transformation warehousing targets many factors like:

      • Better recognized customer quality by limiting order deviations & delays, picking possible errors, and damaged goods.
      • Reducing warehousing operating costs by amplifying productivity, by cutting down unnecessary walking & searching, reducing waiting times, double handling, and rework, enhancing capacity planning & manpower allocation.

        Final Word

        The warehouse management service is one of the most significant elements of supply chain management and the logistics system. It enables an organization to retain its inventory and the data analysis in supply chain management helps to minimize the chances of delay for the shipments. Tracking the delivery times could become much simpler with the help of a warehousing management system.

        Frequently Asked Questions

        “4 Best Supply Chain Books”

        👉 Global Reader’s Click Below:

        1. The New (Ab)Normal: Reshaping Business and Supply Chain Strategy Beyond Covid-19
        2. Greensight: The Sustainability Guide for Company Directors
        3. Operations and Supply Management 4.0: Industry Insights, Case Studies and Best Practices (Future of Business and Finance)
        4. The End of the World Is Just the Beginning: Mapping the Collapse of Globalization

        👉👉India Reader’s Click below:

        1. Made in Future: A Story of Marketing, Media, and Content for our Times
        2. Operations and Supply Management 4.0: Industry Insights, Case Studies and Best Practices (Future of Business and Finance)
        3. Fashion Logistics: Insights into the Fashion Retail Supply Chain
        4. Supply Chain Management 2/e: Text and Cases

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