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Warehouse Management: Not Just a mere Stock Affair

Every company knows the importance of excellent warehouse management. It is, in fact, a decisive aspect for the success of any company, since rough or incorrect management could lead to significant loss of time and money. Optimal warehouse management, unlike what one might think, does not only concern the mere administration of incoming and outgoing product flows or the management of storage spaces but also includes many other aspects, such as the execution of works maintenance and staff training. 

The warehouse is a room that is usually used to store goods that are generally in large quantities and are generally owned by companies in the manufacturing sector. The types of goods stored in warehouses are very diverse, but usually, those stored in there are raw materials or merchandise inventory. Do you know? This warehouse is actually a part of logistics activities whose function is not only limited to storage, but there are important things as well.

Functions of Warehouse Management in the business

The importance of warehouses in business continuity cannot be underestimated. Although they do not have a building for their own warehouse, some companies are willing to rent a place to be used as a storage warehouse. The warehouse functions within the company are as follows:

  • Assembling – The warehouse does have a basic function as a storage area, but some companies also use it as an assembling place to assemble products ordered by clients or consumers.
  • Dispatching – Another function is as dispatching for storage and shipping. With this process, the production of an item can be controlled and in accordance with the specified schedule.
  • Inbound and Outbound Consolidation – The company also uses the warehouse as an inbound and outbound consolidation. Inbound consolidation is a process in which goods are first consolidated in a storage room before entering the production process. While outbound consolidation is placing goods that are produced and consolidated before being handed over to customers.
  • Maintaining Record – The warehouse is used as a storage area that functions to perform product maintenance. Especially if the merchandise owned by the company really needs to be placed in a good room so that the quality of the goods is maintained.
  • Packaging – The warehouse is also used for packing a product before it is delivered to the customer. In the warehouse also the order selection is carried out before proceeding to the next process. The storage and inspection of goods in containers is also carried out in this storage room until it is sent to the customer.

How to build an excellent warehouse management system

In addition to the more technical aspects, it is important to remember that the efficient and organized management of a warehouse also involves a series of small routine gestures, often left to chance but that can make the difference. Here, are some tips to build an effective warehouse management system:

  • Warehouse management documents – The paperwork is the cross that every company must carry, but the documents are necessary not only for tax or similar purposes but they are a very useful source of information that, if properly exploited, can greatly improve our warehouse management.
  • Warehousemen and staff – It is always people who make the difference in every activity of life because the success of operation always lies in how it is done more than in what is done. The choice of qualified, capable personnel and their training is the basis for quality warehouse management.
  • Security of the Warehouse – If a warehouse is safe, those who work there will be more stimulated, the work will be easier and less expensive, and the risk of accidents will be drastically reduced.
  • Warehouse Logistics – The control of all the organizational, managerial and strategic activities that govern the flow of materials and the related source and destination information is a key activity that must always be verified and perfected. The control and optimization of procedures and life phases of materials and products in stock can make the difference not only for warehouse management but also for the economy of your business.


Every company’s assessment will be different. It’s important to prioritize the changes and estimate the effort and benefits. Low-hanging fruit is important. However, there are often changes that have to be made first in order to implement the most critical updates. While these assessments require a lot of effort across departments, improved warehouse management, including higher accuracy and availability, are critical to improving both sales and the customer experience while remaining competitive.