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Warehousing and warehouse management? Everything worth knowing briefly explained!

Whether your own company has production or just needs to store equipment and materials - there is no getting around a warehouse. What exactly do warehousing and warehouse management mean? What are the tasks and types of warehousing? What is the definition of warehouse management? And where are warehouse management systems useful? We take on these questions and clarify!

What are the definitions of warehousing and warehouse management?

Warehousing, warehouse management

Warehousing deals exclusively with the storage of material and equipment. Storage therefore means that the operational flow of equipment and materials is deliberately interrupted and inventories are deliberately built up. In logistics, it is the storage of articles as a sub-discipline of materials management. The warehouse management, on the other hand, includes not only warehousing, but also monitoring, Organization and control of all warehouse logistics processes. So includes any task that you can imagine under warehouse logistics. If you have excellent warehouse management, you also have effective warehouse management. But more on that later!

Are there different types of warehousing?

No two warehouses are the same, so there are of course various types and subtypes of warehousing. Warehouse management is as individual as your own company. Different types of bearings have different characteristics. What does that mean? Let's take storage by type of goods first. The items are sorted by consistency, type of material, weight or volume. In specific cases even after dangerousness. However, this type of storage does not make sense in every warehouse and company. The mode of operation could also play an important role in the type of storage. In an industrial company, demarcations between the supply store, with the raw materials and fuel store, the interim store and the finished goods store would be appropriate. In retail, only one warehouse would make sense - the sales warehouse. In addition to central warehousing, decentralized warehouses can of course also be considered in order to be able to maintain more flexibility and shorter delivery times.

Of course, none of these things should be constraints that you have to put yourself into. Modern warehousing can always be designed according to operational requirements and should not be seen as a rigid construct. In the best case, a warehouse acts as needed and flexibly to upcoming tasks. The main goals of warehousing are the fulfillment of operational and economic interests. Therefore, the aim should always be to optimize warehousing.

What are the functions and tasks of warehousing?

The functions and tasks of warehousing can differ depending on the type of business and warehouse. Providing and piling up materials and equipment may be the most obvious purpose of camp, but there is more to it than that. We would like to explain in more detail exactly what these different warehousing functions and tasks look like and why they are important for all processes in the company.

The safety of production - the security function

Stock management backup function

One of the most important functions of warehousing is the backup function. If you have a well-stocked pantry at home, you should be familiar with the security function. If you want to cook a spaghetti Bolognese, it would be incredibly annoying if (passed) tomatoes were missing. For this reason, it makes sense for companies to keep a warehouse. Production or delivery is guaranteed by an up-to-date inventory. These buffer amounts pay off when there are supply bottlenecks that may occur seasonally or due to material shortages.

A lot helps a lot - the bridging function

Warehouse management bridging function

In some cases, items or goods can only be ordered in larger quantities. Only a fraction of what was actually ordered is required. An interim storage facility is then the optimal solution. Ballpoint pens are a small example. The company's own logo is printed on it and ideally in every office. But at least 300 must be ordered. So it's worth freeing up shelf space for the (still) surplus pens, especially for smaller companies.

This can stay put for a while - the refinement function

Warehouse management finishing function

Good whiskey and wine must mature before they can be enjoyed. This is no different with wood. The storage location must meet certain requirements. Neither direct sunlight nor rain should reach the wood. If the substrate is damp, the wood will be damaged again. Clearances to allow the wood to work and breathe should also be maintained. So the company gets fresh wood from the sawmill and has to store it properly so that the wood can later be used with a clear conscience. Thus, the finishing function is part of a wide variety of industries.

Packaged and Labeled - The Transform Function

Warehouse management transformation function

Especially in trading companies, this function plays a significant role in warehouse work. The labeling and filling in packaging prepare the goods for sale or shipping. Goods that are not required are also sorted out.

Why is there so much wood here? – The speculation function

Inventory management speculation function

Wood not only has to be stored well, but the price has risen unbelievably in recent years. It was not uncommon to see semi-trailers filled to the brim with wood on the company premises. Anyone who was able to foresee the trend of price increases was able to save enormous amounts of costs. A warehouse is also available for such cases. Whether due to material shortages or discounts, a warehouse can save enormous costs. The speculation task or function does not appear to be one of the storage functions at first glance, but proves to be very useful if you have good foresight.

What are the costs of warehousing?

The warehouse is the central turning point of a company. Articles are stored, processed and organized here. The better organized the warehouse is, the lower the costs. What are the typical costs involved? Fixed costs are rent, energy and warehouse staff. Insurance, rejected goods, transport costs or tied goods are often added as variable costs. Overhead costs - costs that are divided between different areas - should also not be forgotten.

Not every system has a system - the different storage space systems

In a warehouse, problems can quickly arise. But chaos and disorder are so undesirable and only bring more problems. Errors can be minimized with transparent and well-structured systems. But which systems are there anyway?

The systematic storage space arrangement - the fairground system

With the fixed place system Each item in the warehouse is assigned a specific storage location. This storage location cannot be occupied by any other item. The biggest advantage here is the simple control of the desired item. Warehouse employees know where the individual objects are and can make them available quickly. The sticking point is the low degree of space utilization.

The chaotic warehousing

The fact that the word chaos gets a thoroughly positive recognition is thanks to the chaotic or dynamic warehousing. Advantages of chaotic warehousing are the high flexibility and the high degree of space and time utilization. However, a warehouse management program is required. And if there is a software failure, this can quickly become a major problem. cloud-based software that slow down such problems. Interest in chaotic warehousing?

What does the definition of warehouse management include?

The warehouse management includes all warehouse logistics processes. Warehouse and logistics are two inextricably linked concepts. In addition to monitoring your own stocks, all transports within the warehouse are recorded and evaluated. The advent of IT and computers was of great importance for the warehouse management. File boxes no longer had to be processed to find a storage location or to maintain the warehouse. Technology has some advantages.

What are the tasks of warehouse management?

In a functioning warehouse management there are 5 main tasks:< /strong>

  • Incoming goods: New items must be transferred to the warehouse management system (LVS ) and then stored in a suitable shelf

  • Outgoing goods: If material and equipment have to be outsourced or transported to a specific construction site, this is also regulated by the warehouse management.

  • Picking: In addition to coordinating the outgoing goods, material and devices can also be part of a picking area be transferred within the company. From there, the subsequent transport takes place.

  • Shipping: Added to goods issue and picking shipping. Items that are used or stored in a different location or that may be sold are also managed via the warehouse management coordinated.

  • Inventory: It would be inconvenient if stock levels were no longer stored correctly. Therefore, the inventory in the warehouse counts as an indispensable and enormously important task of every company and therefore also of every warehouse management< /a>.

How intensive and extensive these tasks are depends on the requirements of the warehouse and company. With a strong flow of materials and equipment and when used on construction sites, the inventory is limited to the essentials, since the items are determined and embedded at each entry and exit.

Indispensable for the warehouse - definition of the warehouse management system

warehouse management system

The management of storage quantities, storage locations and the relations between these are the core functions of the warehouse management system. Movements in the warehouse are mapped using this software. There are two different types of transceivers. The first is the pure warehouse management system, which is self-contained software. The data can only be transferred to other software with a lot of effort. The second WMS is the integrated warehouse management system. This is entered into a warehouse management system and all relevant data can be viewed and processed by other users throughout the company. What are the disadvantages and advantages of warehouse management systems?

What are the differences between a pure warehouse management system and an integrated warehouse management system?

A pure warehouse management system is a self-contained software system. Use with other software programs in the organization is only possible via technical interfaces. An integrated warehouse management system is integrated into a merchandise management system. All data collected in the stock changes and stocks are used by other users in other departments for future processing. Whether a company opts for a pure or an integrated warehouse management system depends on the Company size and the variety of tasks in the warehouse and planning.

What are the advantages of a warehouse management system?

The use of an avalanche transceiver system makes a lot of sense in several respects. Stocks can be minimized based on the data provided regarding stocks and material flow. The capital tied up in the warehouse is reduced. At the same time, a warehouse management system (or merchandise management system | warehouse management system) indicates that that certain stocks are approaching the minimum and therefore no delivery bottlenecks arise. Data collection is digital, transparent and fast. Sheet collections are a thing of the past and the data from the warehouse can be viewed and managed more transparently. The warehouse organization benefits immensely from the use of suitable software. The equipment of the warehouse staff inspires this process even more. Picking and delivery are faster and are recorded directly in the database. Since the data is imported immediately, the office staff and the executive floor can access this data - transparency in the company! The staff can also receive digital authorization from the management floor. Data security is never neglected. The collected data can also be evaluated quickly within the software. Dynamic processes simply cannot be represented by an Excel list. Creating Excel calculations is no longer necessary and enables stress-free operational processes. The current stock is always available and you can therefore make decisions at any time - thanks to a comprehensive warehouse management system!

Does a warehouse management system also have disadvantages?

The use of an avalanche transceiver generates costs. Since software and possibly hardware, such as hand scanners, have to be purchased. Software-as-a-Service (Saas) can help here. Companies can deduct the costs annually as operating expenses. If you only get a license, you can only write it off after 3 to 5 years. Another disadvantage is the training of the staff. It takes time and patience before the software can be understood and used perfectly. But the benefits outweigh the disadvantages here.

No suitable warehouse management system yet and interest in the perfect combination of warehouse and Logistics? A simple, modern warehouse management with barcode scanner, NFT or RFID is offered by kontrool - this is how you achieve maximum productivity in the warehouse!


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