The Importance Of Warehousing

Warehousing can be defined as “the part of the logistics system that stores product at and between the point of origin and point of consumption and provides information to management on the status, condition and disposition of items being stored.” Warehouses are normally viewed by some as simply a place to store finished goods and incurring huge costs. An effective supply chain is essential to achieve operational excellence for an organization. Warehousing forms an integral part of supply chain and thus optimizing operations inside a warehouse is important to sustain an entire supply chain. Regardless of what some might say, business leaders know how much the organization’s success depends on having an effective and comprehensive warehouse management strategies.

Efficient warehouse operations ensure that a company receives the right stocks from suppliers to replenish and ship stocks to the distributors or customers in time.

Organizations are constantly trying to improve performance in these sub-areas which in turn would drive overall productivity and performance of a supply chain. Efficient operations do not happen by chance, but through implementing a series of best practices. Every warehouse should have a best practices program. It is through these practices, companies could achieve

Since warehousing is critical to a supply chain, it is necessary to drive the performance through these KPIs. These are also necessary tool for continuous improvement environment. People. Cost, Space and Systems drive the performance inside the warehouse. Hence, generally warehouse KPIs are based on the above mentioned drivers and focused on activity in order to micromanage the performance. Most common activities inside any warehouse are Receiving, Put-away, Storage, Picking and