Definition of Warehouse Logistics
To define warehouse logistics, we must first understand the meaning of logistics itself. In the simplest possible terms, logistics may be defined as the detailed planning, organization, management, and implementation of complex operations. In many industries, including warehousing, logistics also extends to the flow of both physical goods and information.
Warehouse logistics, therefore, encompasses all the varied, complex factors – organization, movements, and management – involved in warehousing. This includes the flow (shipping and receiving) of physical inventory, as well as that of more abstract goods, including information and time.
Warehouse logistics may also extend to anything from warehouse pest control, to damaged goods handling, to safety policies, to human resources management, to customer returns. In other words, warehouse logistics involves all the policies, procedures, and organizational tools necessary to keep your warehouse operations running smoothly.
Challenges of Warehouse Logistics
Common warehouse logistics challenges revolve around organization: Simply put, how can you achieve detailed control over something as large as a warehouse?
And yet, you must. You must be able to pinpoint the exact location of a specific item of inventory, the pallet that carried a purportedly expired food item, or the truck that shipped an item damaged during shipment. These controls are paramount to smooth operations and healthy revenues, and yet, without expert tools, they are nearly impossible to achieve.
Warehouse challenges run even deeper than these immediate concerns, extending into inventory management, supply chain management, cost controls, human resources, risk management, and security, among other factors. So, how can you achieve enough flexibility to stay competitive, while maintaining adequate offerings to please customers, while still exercising sufficient controls to protect your revenues? These are the questions facing warehouses today.
Benefits of Warehouse Logistics
The benefit of controlled warehouse logistics is simple – increased revenue.
Think of it this way: When your warehouse operations run smoothly, inventory is properly accounted for, the right item is sent at the right time, stock is replenished when needed, fewer picking errors occur, and all the people, processes, and systems fall into place as they should, your warehouse operates more efficiently. There are fewer errors and fewer problems, and that means maximized revenue.
When you implement a solid WMS to control your warehouse logistics, you:
- Ensure accurate, real-time inventory counts: Know how much inventory you have – and its specific location within your warehouse.
- Decrease returns: An accurate look at your inventory means sending the right item, the first time.
- Auto-replenish stock: Don’t wait until you’re out (or nearly out) of stock to order more; let your WMS auto-replenish inventory when stock levels get low.
- Maximize warehouse space: Some WMS automate warehouse routines (ex. stock rotation and picking), which means you’ll need less floor space for workers, which in turn means maximizing your warehouse space to store more inventory.
Other WMS benefits extend to better demand planning, improved visibility and transparency, stock traceability, fewer picking errors, optimized processes, efficient labor allocation, and improved customer services – factors that boil down to reduced operational expenses and more revenue.
