Overview of Warehousing
Vinothkumar Jayapathi
SAP S4 MANAGER - Logistics, Extended Warehouse management(EWM), Warehouse management
1.????? TYPE OF WAREHOUSING – BASED on LAYOUT DESIGN & FUNCTIONALITY
?1.1.??? Warehouse Types based on Functionality?
1.1.1??????? Distribution Center (DC)
·????Focuses on quick movement of goods rather than long-term storage.
·???Located near major transportation hubs for fast delivery.
·??????? Example: Walmart’s regional distribution centers
1.1.2.????? Fulfillment Center (FC)
·??????? Used by e-commerce businesses for order processing and shipping.
·??????? Integrates with warehouse management systems (WMS) for real-time tracking.
·??????? Example: Amazon Fulfillment Centers.
1.1.3.????? Cold Storage Warehouse
·??????? Stores temperature-sensitive goods like food, pharmaceuticals, and chemicals.
·??????? Uses refrigeration or freezing technology.
·??????? Example: Ice cream storage facilities.
1.1.4.????? Smart Warehouse
·??????? Uses automation, AI, and robotics for inventory management.
·??????? Improves efficiency, reduces errors, and speeds up operations.
·??????? Example: Amazon and Alibaba’s AI-powered warehouses.
1.1.5.????? Hazardous Goods Warehouse
·??????? Stores chemicals, flammable liquids, and toxic substances.
·??????? Requires special safety measures and government compliance.
·??????? Example: Warehouses storing industrial chemicals.
1.1.6.????? Reverse Logistics Warehouse
·??????? Handles returned products, repairs, recycling, and disposal.
·??????? Important for e-commerce and sustainability efforts.
·??????? Example: Electronics recycling centers.
1.1.7.????? Raw Material Warehouse (PRODUCTION SUPPLY Warehouse)
·??????? Stores raw materials for manufacturing industries.
·??????? Example: Steel and plastic storage for automotive factories.
1.1.8.????? Finished Goods Warehouse
·??????? Stores completed products before distribution.
·??????? Example: Furniture warehouses storing ready-to-ship products.
1.2.??? BASED ON STORAGE TECHNIQUES AND LAYOUT
1.2.1.????? Automated Warehouse
·??????? Uses robotic systems and AI for storage and retrieval.
·??????? Reduces human labor and improves order accuracy.
·??????? Example: High-tech warehouses with conveyor belts and robotic pickers.
1.2.2.????? Cross-Docking Warehouse
·??????? Goods are directly transferred from inbound to outbound trucks without long-term storage.
·??????? Reduces inventory costs and speeds up supply chain processes.
·??????? Example: Supermarket supply chains.
1.2.3.????? High-Rise Warehouse
·??????? Uses tall racks and automated retrieval systems to maximize space.
·??????? Ideal for urban areas with limited land.
·??????? Example: Multi-story warehouse facilities.
1.2.4.????? Climate-Controlled Warehouse
·??????? Maintains controlled temperature and humidity levels for sensitive products.
·??????? Example: Medical supply warehouses.
1.3.??? DETAILING THE WAREHOUSE TYPES:
?1.3.1.??????? Distribution and Fulfillment centers (DC & FC) : Distribution Centers (DCs) and Fulfillment Centers (FCs) are key components of modern supply chains, ensuring the efficient movement of goods. While both serve as logistics hubs, they have distinct roles in warehousing and order fulfillment.
Distribution and Fulfillment (D&F): A warehousing operation that involves receiving, storing, picking, packing, and shipping goods to customers or retail locations. Fulfillment centers focus on direct-to-customer orders, while distribution centers serve retailers and wholesalers.
Distribution Center (DC) is a warehouse that temporarily stores and distributes goods to retail stores, wholesalers, or fulfillment centers. DCs focus on bulk storage and efficient transportation of inventory. Fulfillment Center (FC) is designed to handle direct-to-consumer (D2C) orders, typically for e-commerce and online businesses. FCs focus on fast and accurate order processing, packing, and shipping.
1.3.2.??????? OMNICHANNEL?: Omnichannel refers to a seamless, integrated approach to retail and supply chain management where customers can shop, order, and receive products across multiple channels—online, in-store, mobile, and marketplaces—without friction. In warehousing, omnichannel fulfillment ensures smooth inventory management and order processing regardless of the sales channel.
Strategies of Omnichannel
·??????? Buy Online, Pick Up In-Store (BOPIS)
·??????? Buy Online, Return In-Store (BORIS)
·??????? Ship-from-Store
·??????? Dropshipping
·??????? Third-Party Logistics (3PL) Integration
1.3.3.??????? PRODUCTION SUPPLY WAREHOUSE is a facility that stores and manages raw materials, components, and semi-finished goods required for manufacturing. It ensures a steady flow of materials to the production line, preventing delays and maintaining efficiency.
Functions of a Production Supply Warehouse:
1.????? Material Storage – Holds raw materials, components, and subassemblies needed for production.
2.????? Just-in-Time (JIT) Delivery – Supplies materials to production lines only when needed to reduce inventory costs.
3.????? Kitting & Pre-Assembly – Prepares kits with required parts for specific manufacturing processes.
4.????? Quality Control – Inspects incoming materials to ensure they meet production standards.
5.????? Inventory Management – Uses warehouse management systems (WMS) to track stock levels and prevent shortages.
6.????? Replenishment & Staging – Moves materials to designated areas near production lines for quick access.
7.????? Returns & Waste Handling – Manages defective materials, scrap, and recycling processes.
Kanban is a lean inventory management system used in warehousing and production to ensure a smooth and efficient flow of materials. It operates on a pull system, meaning stock is replenished only when needed, reducing excess inventory and waste.
1.3.4.??????? CROSS DOCKING (CD) : Cross-docking is a supply chain strategy where incoming goods are directly transferred from inbound shipments to outbound trucks with little to no storage time. It helps reduce inventory holding costs, improves order fulfillment speed, and enhances supply chain efficiency.
Type : Opportunistic Cross-Docking, Manufacturing Cross-Docking, Post-Distribution Cross-Docking, Retail Cross-Docking, Pre-Distribution Cross-Docking
1.3.5.??????? 3PL?- Third-Party Logistics (3PL) is a service where businesses outsource their logistics, warehousing, and distribution operations to an external provider. 3PL companies handle storage, inventory management, order fulfillment, shipping, and sometimes returns processing, allowing businesses to focus on sales and customer service.
Types : Standard 3PL, Service Developer 3PL, Customer Adapter 3PL, Customer Developer 3PL
1.3.6.??????? OPEN STORAGE?: A warehousing method where goods are stored in an open area without enclosures, racks, or shelves, typically used for bulk or oversized items. - Bulk Raw Material, Agricultural Products,
1.3.7.??????? FLOOR STORAGE?: A storage method where goods are placed directly on the warehouse floor rather than using racks or shelves. It is often used for large or heavy items.
1.3.8.??????? RACK STORAGE: – A system of storing goods on racks or shelving units to optimize space and organization. It allows for easier access, inventory management, and efficient picking.
Carton Flow Racks – Used in order-picking systems where boxes or totes slide down inclined rollers for easy access.
Pallet Flow Racks – Heavy pallets move forward on a sloped track as items in front are removed, commonly used in FIFO (First In, First Out) storage.
Racking System Parameters
·??????? Load Capacity: Maximum weight per shelf or rack level, ensuring structural stability.
·??????? Beam Levels: The number of horizontal shelves or tiers in a racking system.
·??????? Pallet Positioning:
o?? Selective Racking: Each pallet is directly accessible.
o?? High-Density Racking: Pallets are stacked deeply for space efficiency.
·??????? Material Handling Equipment Compatibility: Ensures racks are designed for forklifts, reach trucks, or automated systems.
1.4.??? Key aspect in warehouse Layout:
Warehouse layout is the physical arrangement of storage, equipment, and operations within a warehouse. A good layout maximizes space, improves efficiency, and promotes smooth, safe workflows by minimizing handling times and travel distances.
1.5.??? Design consideration of Warehouse Layout
·??????? Space Utilization
·??????? Product Flow
·??????? Storage Systems
·??????? Picking Methodology
·??????? Safety and Accessibility
·??????? Technology Integration
·??????? Receiving and Shipping Areas
·??????? Employee and Equipment Workflow
·??????? Buffer and Reserve Storage
·??????? Scalability and Flexibility
1.6.??? Common Warehouse Layout Configurations
1.6.1.??????? Straight-Line Layout: This layout has a simple, direct flow from receiving to shipping, with storage in between. It’s suitable for warehouses with a simple product flow.
1.6.2.??????? U-Shaped Layout: A U-shaped layout allows products to move smoothly from receiving, to storage, to picking, packing, and shipping. It minimizes unnecessary movement and is commonly used in warehouses with high order volumes.
1.6.3.??????? Grid Layout: This layout uses a grid of aisles and storage areas to organize products. It is efficient for large warehouses with diverse products and high inventory turnover.
1.6.4.??????? Dynamic or Adaptive Layout: This flexible layout adapts to changing needs, allowing easy adjustments to storage space or product locations
1.7.??? LAYOUT DESIGN BASED ON AISLE, STACK, LEVEL, DEPTH
1.7.1.??????? Aisle
The space between storage racks or shelves where workers and machinery move to access inventory. The passageway between storage racks that allows movement of workers, forklifts, and equipment.
Types of aisles:
1.7.2.???Stack
A vertical arrangement of stored goods, often stacked on pallets or shelves.
·??????? A stack refers to the vertical arrangement of goods, either on pallets or shelves.
·??????? Goods can be stacked directly on the floor or on racks based on weight, stability, and handling needs.
1.7.3.???Level
The horizontal tier of storage within a rack or shelving unit. Levels are horizontal tiers or shelf layers within a rack system.?
A warehouse rack can have multiple levels, such as:
Ground Level (Floor Storage)
First Level
Second Level
Level (Ceiling Height Limit)
1.7.4.????Depth
The measurement from the front to the back of a storage area, determining how many units can be placed behind each other. Depth refers to the number of pallets or storage positions arranged from front to back within a rack.
Types of rack depths:
2. FINANCIAL CONSIDERATIONS IN WAREHOUSE DESIGN:
2.1.? Total cost of ownership: Total Cost of Ownership (TCO) refers to the comprehensive cost of acquiring, operating, and maintaining a product, system, or solution over its entire lifecycle. It is commonly used in warehouse management, supply chain, IT infrastructure, and enterprise software (ERP, WMS, automation systems, etc.) to evaluate long-term investment decisions.
2.2.? Service Level agreement (SLA)?: A Service Level Agreement (SLA) in warehousing is a formal contract between a warehouse provider and a client that defines the expected level of service, including operational standards, performance metrics, and specific responsibilities related to warehousing operations. The SLA outlines the expectations for handling inventory, storage, order fulfillment, and other warehousing activities.
2.3.? ROI - Return on Investment?: ROI in Warehousing is a metric used to assess the financial performance of investments made in a warehouse operation. This can include investments in warehouse facilities, equipment, technology, staffing, or improvements aimed at increasing efficiency, reducing costs, or boosting productivity.
2.4.? ROA - Return of Asset?: ROA (Return on Assets) in warehousing is a metric that evaluates how efficiently a warehouse or distribution center is using its physical and operational assets (like space, equipment, and technology) to generate profit. It’s particularly useful for understanding whether the warehouse is optimizing its resources to contribute to overall profitability
3.???WAREHOUSING OPERATION & CAPABILITY
Warehousing Operation are
·??????? Inbound
·??????? Docking
·??????? Loading/Unloading
·??????? Staging
·??????? Goods Receipt
·??????? Putaway
·??????? Retrieval
·??????? Picking
·??????? Decanting
·??????? Packing/Repacking ?
·??????? VAS
·??????? Routing
·??????? Replenishment
·??????? Outbound
·??????? Shipping/Transportation?
3.1.? INBOUND PROCESS: ?
INBOUND PROCESS involves handling goods that arrive at the warehouse from suppliers, manufacturers, or distribution centers.
Key Steps :
·??????? Order Scheduling & Supplier Coordination
·??????? Receiving & Inspection
·??????? Sorting & Labeling
·??????? Putaway Process
·??????? Inventory Update & System Integration?
3.2. DOCKING:
DOCKING refers to the process of loading or unloading goods at the warehouse docks. It is the physical area where trucks or other vehicles park to transfer goods to and from the warehouse. Docks are equipped with specialized loading equipment like dock levelers and forklifts to facilitate smooth and safe handling of goods - Receiving Docks, Shipping Docks, Cross-Docking.
3.3.? LOADING AND UNLOADING:
It are critical processes in warehousing and logistics that involve the transfer of goods between trucks (or other transport vehicles) and the warehouse or vice versa.
3.4.? STAGING:
STAGING refers to the temporary storage area where products are organized before they are either shipped to customers or moved to the production line.- Order Staging, Production Staging, Shipping Staging, Bulk Staging
3.5.? STORAGE & HANDLING
·??????? Racking System – Shelving structures used to store palletized or boxed inventory.
·??????? Palletization – Storing goods on pallets for easier handling and transportation
·??????? Bulk Storage – Storing large quantities of inventory without individual packaging.
·??????? Staging Area – A designated area where orders or shipments are temporarily held before processing.
·??????? Picking Face – The front-facing area of a shelf or bin from where items are picked.
·??????? Warehouse Layout Optimization – The strategic arrangement of storage areas to maximize space and improve workflow.
3.6.? VAS (VALUE-ADDED SERVICES)
VAS refers to additional services provided in a warehouse or distribution center beyond basic storage and transportation. These services enhance the value of the product, optimize operations, and help meet customer-specific needs. – Kitting, Packaging, Labeling, Assembly, Sorting, Inspection and Quality Control.
3.7.? KITTING?:
KITTING refers to the process of assembling individual items or components into pre-packaged kits or sets that are ready for shipment, production, or sale. This process involves gathering the necessary parts, packaging them together in a specific configuration, and labeling them for easy identification. - Manual Kitting, Automated Kitting, Pre-Kitting etc
3.8.? OUTBOUND PROCESS:
OUTBOUND PROCESS ensures accurate and timely delivery of products from the warehouse to customers, retailers, or distribution centers.
Key Steps :
·??????? Order Processing & Picking- Piece Picking, Batch Picking, Zone Picking, Automated Picking
·??????? Packing & Quality Check
·??????? Sorting & Staging
·??????? Putaway Process
·??????? Shipping & Dispatch
·??????? Last-Mile Delivery & Customer Notification
3.9. SHIPPING & RECEIVING
·??????? Bill of Lading (BOL) – A document that details the shipment of goods and serves as a receipt for the shipper.
·??????? Packing List – A document that lists the contents of a shipment.
·??????? Freight Forwarding – The coordination and shipment of goods on behalf of a company.
·??????? Last-Mile Delivery – The final step in the shipping process, delivering goods to the end customer.
·??????? ASN (Advanced Shipping Notice) – A notification sent before the arrival of a shipment detailing its contents.
3.10.?ROUTE PLANNING?:
ROUTE PLANNING IS the process of optimizing the movement of goods, vehicles, and workers within a warehouse and throughout the supply chain to ensure efficient, cost-effective deliveries.
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Types:
·??????? Warehouse Route Planning (Internal Logistics)
·??????? Production Supply Routing
·??????? Sequencing of Parts
·??????? Transportation Route Planning (Outbound Logistics)
·??????? Last-Mile Delivery Route Optimization
Strategies:
?? Shortest Path Routing – Finds the most direct route to reduce distance and time. ?? Load-Based Routing – Optimizes vehicle space usage to maximize load efficiency. ?? Time-Window Routing – Prioritizes delivery schedules and time-sensitive shipments. ?? Dynamic Route Planning – Adjusts in real-time based on traffic, weather, and last-minute changes. ?? Zone-Based Routing – Assigns delivery areas to specific trucks or drivers for efficiency.
3.11.???DECANTING:
Decanting in warehousing refers to the process of transferring goods from bulk packaging
3.12.??PACKING/REPACKING:
The process of repackaging goods into different quantities, sizes, or packaging types to meet customer requirements or warehouse standards.
3.13.??JIT - JUST-IN-TIME:
Supply chain strategy where inventory is received only as needed, minimizing storage costs and reducing waste while ensuring materials are available for production or distribution.
3.14.??MIXED LOAD HANDLING:
The process of consolidating different types of products (e.g., ??multiple SKUs) into a single pallet or shipment to optimize space and reduce transportation costs.
(Such as pallets, large cartons, or containers) into smaller units for easier handling, storage, and picking.
3.15.?Replenishment:
Replenishment in warehousing refers to the process of restocking inventory from storage locations to picking locations to ensure continuous order fulfillment.
·??????? Demand-Based Replenishment (Dynamic Replenishment)
·??????? Min-Max Replenishment (Threshold-Based Replenishment)
·??????? Top-Off Replenishment
·??????? Scheduled Replenishment????????
·??????? Opportunistic Replenishment
3.16.??SEQUENCING?: The process of arranging items in a specific order before shipping or production. It ensures that components or products are delivered in the correct order for assembly or distribution.
3.17.? OS&D (Over, Short, and Damaged)
OS&D refers to discrepancies between the expected and actual received inventory in warehousing and logistics. This process ensures that shipments are accurate, undamaged, and accounted for, reducing losses and improving supply chain efficiency.
3.18.? WAVE MANAGEMENT: Wave Management is a warehouse order-picking strategy used to group and schedule order fulfillment efficiently. It helps optimize picking routes, labor allocation, and shipping schedules, improving overall warehouse efficiency.
3.19.?PACKING SLIP A document included with a shipment that lists the items being delivered. It details the product descriptions, quantities, and sometimes the order number but does not include pricing.
3.20.? Zone management: Zone Management is a warehouse organization strategy that divides the storage and picking areas into different zones to improve efficiency, reduce congestion, and optimize workflows.
Types: Storage Zones, Picking Zones, Temperature-Controlled Zones, Packing & Shipping Zones, Returns & Reverse Logistics Zones
3.21.??Inventory & Picking Strategy Parameters
·??????? FIFO (First In, First Out): Ensures older stock is used first, ideal for perishable goods.
·??????? LIFO (Last In, First Out): Newer stock is picked first, used in drive-in and push-back racks.
·??????? Picking Methods:
o?? Zone Picking: Pickers work in designated warehouse zones.
o?? Batch Picking: Multiple orders are picked together for efficiency.
o?? Wave Picking: Orders are picked in scheduled waves.
4.????? WAREHOUSE TECHNOLOGY & INNOVATIONS:
4.1. WAREHOUSE MANAGEMENT SYSTEMS
4.1.1.????? WMS - WAREHOUSE MANAGEMENT SYSTEM: WMS is the highest-level software for managing warehouse operations, from inventory tracking to order fulfillment.
4.1.2.????? WES - WAREHOUSE EXECUTION SYSTEM: WES is a bridge between WMS and WCS, optimizing real-time warehouse operations, task prioritization, and automation workflows.
4.1.3.????? WCS – WAREHOUSE CONTROL SYSTEM: WCS is specialized software that controls warehouse automation equipment like conveyors, AS/RS, sorters, and robotic systems.
4.1.4.????? MES - MANUFACTURING EXECUTION SYSTEM: A Manufacturing Execution System (MES) is a software solution that helps manufacturers manage, monitor, and optimize production processes in real time. It acts as a bridge between enterprise resource planning (ERP) systems and the shop floor, ensuring smooth operations, data tracking, and quality control.?
5.???WAREHOUSE STORAGE AND RETRIEVAL?
5.1.? Material Handling Equipment (MHE):
Material Handling Equipment (MHE) refers to the tools, machines, and systems used to transport, store, control, and manage materials and goods within a warehouse, distribution center, or manufacturing facility. MHE plays a crucial role in improving efficiency, safety, and cost-effectiveness in logistics and supply chain operations.
5.2.? Material handling system (MHS):
A Material Handling System (MHS) refers to a collection of equipment, processes, and technologies used to move, store, control, and protect materials within a warehouse, distribution center, or manufacturing facility. The goal of an MHS is to move materials efficiently, reduce manual labor, minimize material damage, and increase overall productivity.
Conveyors, Robotic Arms, Cranes, Forklifts, Lift Trucks, Pallet Jacks, Hopper, Stackers, Silos, Hoppers, Tugger, AGV, AS/RS, AMR, Carts, Reach Truck, Bins,Totes
PLC - Programmable Logic Controller: PLCs ensure efficient material handling, inventory tracking, and warehouse automation by integrating with sensors, actuators, and software systems.
6.????? AUTOMATION OF WAREHOUSE STORAGE AND RETRIEVAL?
6.1.? AUTOMATIC GUIDED VEHICLE:
An Automated Guided Vehicle (AGV) is a self-driving robotic system used for material handling, transportation, and logistics in warehouses, factories, and distribution centers. AGVs navigate using sensors, cameras, and programmed routes, reducing manual labor and improving efficiency.
Types: Tow Vehicles (Tugger AGVs), Unit Load AGVs, Forklift AGVs, Cart AGVs, Hybrid AGVs
6.2.? AUTOMATIC STORAGE AND RETRIEVAL SYSTEM AS/RS:
An Automated Storage and Retrieval System (AS/RS) is a high-tech warehouse solution that automates the storage and retrieval of goods, reducing manual labor, increasing efficiency, and optimizing space utilization. AS/RS systems use robotic systems, conveyors, and computer-controlled mechanisms to store and retrieve inventory with precision.?
Types: Unit Load AS/RS, Mini-Load AS/RS, Shuttle-Based AS/RS, Vertical Lift Modules (VLMs), Carousel Systems (Horizontal & Vertical)
6.3.? AUTONOMOUS MOBILE ROBOTS:
An Autonomous Mobile Robot (AMR) is an advanced robotic system used in warehouses and distribution centers for flexible, efficient, and intelligent material handling. Unlike Automated Guided Vehicles (AGVs), AMRs do not rely on fixed paths; instead, they use sensors, AI, and mapping technology to navigate dynamically in real-time.
Types : Picking & Transport AMRs, Sorting AMRs, Pallet Handling AMRs, Goods-to-Person (GTP) AMRs
6.4? CONVEYOR SYSTEM?:
A conveyor system is an automated solution for moving goods within a warehouse, improving efficiency, reducing manual handling, and streamlining material flow. It is widely used for sorting, packing, loading/unloading, and transporting inventory across different warehouse zones.
Types : Belt Conveyors, Roller Conveyors, Gravity Conveyors, Chain Conveyors, Overhead Conveyors, Incline/Decline Conveyors, Sortation Conveyors
6.4.1. Roller conveyor for Boxes, Totes, Bins?
Roller conveyor is a type of conveyor system that uses rollers mounted on a frame to transport goods such as boxes, totes, and bins. These conveyors can be powered (motorized) or unpowered (gravity-based).
Order Picking & Packing Stations – Used in e-commerce fulfillment centers (e.g., Amazon, Walmart) to move boxes and totes between picking and packing stations.
Sorting & Distribution – Logistics hubs use motorized roller conveyors to sort bins or cartons for shipping to different locations.
Assembly Lines – Manufacturing warehouses use roller conveyors to transport totes or bins with parts between workstations.
Returns Processing – Retail distribution centers use conveyors to move returned items through inspection and restocking zones.
Airport Baggage Handling – Similar roller conveyor systems are used in airports to transport checked baggage efficiently.
6.4.2.?? PALLET CONVEYOR SYSTEM : ?
is a material handling solution designed to transport, accumulate, and distribute pallets efficiently within a warehouse or distribution center. These systems can be powered (motorized) or gravity-driven and are commonly used in high-volume storage and production environments.
Automotive Industry – Parts bins on an assembly line signal when more components (e.g., bolts, wiring) are needed.
Retail Distribution Centers – Store shelves send automated Kanban alerts to warehouses when inventory runs low.
Manufacturing Warehouses – Raw material stock (e.g., metal sheets, plastics) is replenished only when consumption reaches a predefined level.
E-Commerce Fulfillment – Uses digital Kanban systems to trigger restocking of fast-moving SKUs.
6.5.? GOODS-TO-PERSON (GTP):?
GTP/G2P is an Automated order fulfillment and warehouse picking system where products are brought directly to warehouse operators, reducing travel time and increasing efficiency. Instead of workers walking to retrieve items, the system delivers goods to the picker or packer
6.6.? PERSON-TO-GOODS (PTG):
PTG/P2G is a traditional order fulfillment method where warehouse workers manually travel to storage locations to retrieve items for order picking. This method contrasts with Goods-to-Person (GTP)
6.7.? RFID (Radio Frequency Identification)
RFID is a technology that uses radio waves to automatically identify and track inventory, equipment, and shipments in warehouses. It improves inventory accuracy, enhances operational efficiency, and reduces manual scanning errors.
RF scanner (Radio Frequency Scanners): RF scanners are handheld or wearable devices that use radio frequency communication to read barcodes or RFID tags and transmit data to the Warehouse Management System (WMS).
Common Types of RF Scanners:
·??????? Handheld RF Scanners
·??????? Wearable RF Scanners
·??????? Vehicle-Mounted RF Scanners
·??????? Overhead Scanner
Overhead scanner
·??????? Fixed-Mount Scanners
·??????? Wearable Scanners
·??????? Mobile Computer Scanners (Rugged Tablets/PDTs)
·??????? Tunnel Scanners
6.8.? IOT - INTERNET OF THINGS:
The Internet of Things (IoT) in warehousing refers to a network of connected sensors, devices, and systems that collect and share real-time data to optimize warehouse operations. IoT enables automation, improves inventory visibility, enhances efficiency, and reduces operational costs
6.9.? POS - POINT OF SALES?:
Point of Sale (POS) refers to the system used to complete sales transactions, typically in retail stores, e-commerce platforms, and physical outlets. When integrated with warehousing and inventory management, POS systems help track stock levels in real-time, optimize replenishment, and improve
Key Focus of POS :
·??????? Real-Time Inventory Tracking
·??????? Automated Replenishment & Stock Alerts
·??????? Multi-Location Inventory Management
·??????? Omnichannel Order Fulfillment
·??????? Data Analytics & Demand Forecasting
·??????? Returns & Reverse Logistics
6.10. Minimum viable product :
Minimum Viable Product (MVP) is a concept from Lean Startup methodology that refers to developing a basic version of a product or system with just enough features to satisfy early adopters. The goal is to test ideas quickly, gather feedback, and improve iteratively before a full-scale rollout.
7.????WAREHOUSE METRICS & KPI'S
7.1. WAREHOUSE KPI
7.1.1.?Inventory Turnover = COGS / Average Inventory
o?? Measures how many times inventory is sold and replaced over a period.
o?? Higher turnover indicates better inventory management.
7.1.2.??Days of Inventory on Hand (DOH) = (Average Inventory / COGS) × 365
o?? Shows how long inventory will last before replenishment is needed.
o?? Lower DOH means faster-moving inventory.
7.1.3.?Stock Accuracy = (System Inventory / Physical Inventory) × 100
o?? Measures the accuracy of inventory records compared to actual stock.
o?? Ideal accuracy: 99% or higher.
7.1.4 Order Accuracy Rate = (Correct Orders / Total Orders) × 100
o?? Percentage of correctly picked and shipped orders.
o?? Target: 99%+ for high customer satisfaction.
7.1. WAREHOUSE EFFICIENCY METRICS
7.2.1.??Dock-to-Stock Time
o?? Measures how long it takes for received goods to be available for picking.
o?? Faster times improve inbound efficiency.
7.2.2.??Order Cycle Time = Time from Order Received to Order Shipped
o?? Indicates warehouse processing speed.
o?? Goal: Reduce cycle time to improve customer satisfaction.
7.2.3.??Picking Accuracy = (Accurate Picks / Total Picks) × 100
o?? Measures errors in picking operations.
o?? Directly impacts order accuracy and customer satisfaction.
7.2.4.?Space Utilization = (Used Warehouse Space / Total Warehouse Space) × 100
o?? Evaluates how efficiently storage capacity is used.
7.3.??INVENTORY TURNS (INVENTORY TURNOVER)
Inventory Turnover (also known as Inventory Turns) is a key metric in warehouse and supply chain management that measures how many times inventory is sold and replaced within a specific period. It helps businesses evaluate inventory efficiency and demand forecasting.
High Turnover (6-12 times/year or more)
Low Turnover (1-3 times/year or less)
Optimize Warehouse Operations
·??????? FIFO (First In, First Out): Ensures older stock sells first.
·??????? ABC Analysis: Classifies inventory into high (A), medium (B), and low (C) priority.
·??????? Cycle Counting: Regular inventory audits to maintain accuracy
8.1. WAREHOUSING & RETURNS MANAGEMENT:
Returns Management (also known as Reverse Logistics) is the process of handling returned products efficiently, ensuring smooth restocking, refurbishing, or disposal. A well-structured returns process helps reduce costs, improve customer satisfaction, and maximize inventory recovery.
Customer Return Initiation – Customers request a return through POS, e-commerce platforms, or customer service.
Return Authorization (RMA - Return Merchandise Authorization) – The warehouse receives return requests and validates them before approval.
Product Receipt & Inspection – Returned goods are checked for damage, defects, or resale potential.
Sorting & Categorization – Items are classified into:
Refund, Replacement, or Credit Processing – Customers receive refunds, exchanges, or store credit.
Restocking or Disposal – Items are returned to inventory, sent for repair, or properly disposed of.
Types of Returns in Warehousing
?? Customer Returns – Products sent back due to defects, wrong shipments, or dissatisfaction. ?? Retailer & Distributor Returns – Unsold or defective stock returned to suppliers. ?? E-commerce Returns – High-volume returns from online purchases, often due to size, fit, or product expectations. ?? Damaged Goods Returns – Items returned due to shipping or handling damage. ?? Warranty & Repair Returns – Products sent back for servicing or replacement under warranty. ?? End-of-Life Product Returns – Items returned for recycling, resale, or disposal.
9.1. WAREHOUSING & SUBCONTRACTING:
Subcontracting in warehousing refers to outsourcing specific logistics, storage, or operational tasks to third-party service providers. This helps companies reduce costs, improve efficiency, and focus on core business activities.
Third-Party Logistics (3PL) Providers – Companies like DHL, FedEx, and UPS handle warehousing, order fulfillment, and shipping for businesses.
Packaging & Labeling Services – A warehouse might subcontract packaging, kitting, or labeling tasks to a specialized company.
Transportation & Distribution – Instead of managing a fleet, companies subcontract trucking or last-mile delivery to logistics firms.
Inventory Management – Businesses hire external firms to handle stock control, replenishment, and demand forecasting.
Reverse Logistics – Returns processing and refurbishment of products may be subcontracted to a third-party provider.?
10.1 WAREHOUSE SCRAPPING:
SCRAPPING refers to the process of discarding or disposing of materials, products, or goods that are no longer usable or valuable. In warehousing, scrapping typically applies to inventory that is defective, damaged, expired, or obsolete. This process is important to ensure that the warehouse operates efficiently and that unusable stock does not take up valuable space. Defective, Expired or Obsolete Inventory, Damaged Goods, Excess Stock.
10.? GENERAL TERMS IN WAREHOSING:
10.1. Stock Keeping Unit
(SKU) is a unique identifier assigned to each product within a warehouse or inventory system. SKUs are crucial for tracking stock levels, monitoring movement, optimizing sales, ensuring efficient inventory management, order fulfillment, and demand forecasting.?
10.2.? Barcodes :
BARCODE act as a critical tool for seamlessly managing inventory, identifying products, and streamlining logistics by storing product details in a format that can be quickly read by machines, thereby enhancing the accuracy, speed, and overall efficiency of goods handling. ?
10.3.LABELING
Labeling is essential in warehousing and logistics for product identification, inventory tracking, regulatory compliance, and efficient handling. Proper labeling ensures that products can be easily stored, retrieved, shipped, and traced throughout the supply chain.?
11. PALLETIZATION AND CARTONIZATION
It crucial concepts in warehouse management, helping to optimize storage, transportation, and order fulfillment
11.1?? Palletization
The process of placing and securing goods onto pallets for easier handling, storage, and transportation. Palletization helps stacking goods on pallets to facilitate storage, handling, and transportation.
Key Aspects of Palletization
11.2. CARTONIZATION:
CARTONIZATION refers to the process of determining the most efficient way to pack items into boxes (cartons) for storage and shipping.
Key Aspects of Cartonization
Relationship Between Palletization & Cartonization
13. CARTONS, TOTES AND TRAYS :
·??????? Cartons – Cardboard or corrugated boxes used for packing and shipping products.
·??????? Totes – Reusable plastic containers used for storing and transporting smaller items within a warehouse.
·??????? Trays – Flat, open-top containers used for holding and organizing products during storage or picking.