Skip to content Skip to sidebar Skip to footer

Definition Of Warehouse Operations

Table of Content

Warehouse Operations

What is the Definition of Warehouse Operations?

In its most basic form, "warehousing" refers to the process of storing products until they are required. 

The purpose of warehouse operations is to meet the demands and requirements of customers while efficiently utilizing space, equipment, and people. 

The things must be both accessible and safe. Meeting this goal necessitates continuing planning and adaptation.

We are officially living in the golden age of fast fulfillment, which means that warehouses around the world have their job cut out for them. 

According to Statistic data, the number of warehouses in operation in the United States has been steadily increasing over the last decade, reaching at approximately 18,000 in 2017. 

Retailers, suppliers, and distribution managers must master the ins and outs of the ever-evolving field of high-tech modern warehousing as competition grows and consumer expectations expand into previously uncharted territory.

However, just because recent automated technologies have altered the landscape of the overall customer experience does not mean that people new to the industry should skip over the fundamentals. 

The first step for any company entering today's fulfillment competition should be to gain a thorough understanding of warehouse operations. 

Let's take a quick look at the meaning of warehouse operations, as well as the problems and best practices that come with it.

Before discussing further warehouse operations, we should know about how it should be a good warehouse location?

A good warehouse location should have the following 3 aspects:


A Good warehouse location should be close to the final customer. The advantage is to minimize the cost of distribution and transportation. 

Therefore in the present time, many manufacturing companies are building or renting warehouses to store the stock of goods produced in order to be closer to their end consumer. 

No wonder nowadays there are many warehousing complexes that thrive. This happens because the market and the need for this warehouse from year to year continues to increase.


In case the raw material warehouse to meet production needs should be close to the production line. If the production building consists of several building locations then the best warehouse location should be in the middle. This, of course, will minimize the cost of handling goods.

Then we also have to know a few things about good warehouse productivity.

Warehouse productivity includes the following:

a. Maximum Use Of Space

Take advantage of the space in the warehouse well to get maximum capacity.

b. Effective Use Of Labor, Time And Equipment.

Employee Efficient, time and warehouse equipment will certainly increase productivity. 

Movement of employees and equipment should be noted well so there is no rush hour at certain times, while at other times employees and equipment idle. 

The preparation of the task of the warehouse employee's duties should be completely stacked well.


This includes stock location, accessibility, order picking and assembly, packaging. This will I discuss further in the warehouse operations later.

Warehouse Operations

a. Stock Location Or Stock Placement

There are 4 things or group that we can do to do the stock allocation well, such as:
  • Group Functionally Related Items Together, that is group the goods or materials in the warehouse based on its function.
  • Group Fast Moving And Slow Moving Items Together, that is group the goods or materials in the warehouse based on the movement of goods. Placing fast items in use on the front and easy to reach, while items that move slowly are placed in the back
  • Group Physically Similiar Items Together, that is group items or materials in the warehouse based on the size of goods and the like. The goods are large-size (bulky parts) in the place at their own location. Then the items whose small size (small parts) are also placed in their own separate location with a large-large. Chemical Goods (chemicals) and frozen goods (frozen) must also be placed in a separate location according to the needs of his because for chemical and frozen goods in need of special needs such as room temperature and the nature of flammable chemicals.
  • Locate Working Stock and Reserve Stock Separately. Separate goods or materials in the warehouse to meet the needs of production and goods or materials for the purpose of supply (buffer stock).
b. Accessibility

Easy access to pick up items or place items is also an important element in the warehouse. 

If access reaches an unhindered item, it will accelerate the process of taking the goods as time is not wasted just to move the goods that block the road access.

c. Order Picking And Assembly

Order Picking is the most time-consuming job in the warehouse. Approximately 50% of working time from warehouse employees is spent on this picking order activity.

Breakdown of the working element of the order picking activity is as follows:
  • Walk to a Pickup location
  • Move items in the access location to reach items.
  • Pulling/Picking up items from a storage place.
  • Documentation of transactions.
  • Sort items.
  • Packing goods.
d. Packaging

The effectiveness of warehouse operations is also determined by the process of packaging goods. Laying out similar items in one pallet will certainly save storage capacity space in the warehouse.

What is the Process of Warehouse Operations?

Definition Of Warehouse Operations

While there are numerous aspects to consider when it comes to warehouse operations, the most important factor nowadays is the customer experience. 

Consumers have gotten accustomed to two-day, one-day, or even hourly shipping times with the development of Amazon and its largely autonomous fulfillment facilities.

Customers' demands must be prioritized in warehouse operations as a result of these expectations. 

Operations can achieve this by investing in a software system, like as a WMS, WES, or CRM, that provides a picture of the retailer's inventory levels to all members of the supply chain, including customers. 

The operations manager, along with planners and other management, can use the purchase data to strategically put the most popular or quickly-moving SKUs on the warehouse floor.

Management must examine elements such as new technology integration, choosing routes, safety, people management, and more after the inventory and infrastructure plans have been finalized. 

The organization's fleet, whether internal or external, must also be considered. Warehouse operations workers are responsible for ensuring that all inventory is chosen, packed, and ready for distribution in the most efficient manner possible.


"The purpose of warehouse operations is to satisfy customers' needs and requirements while utilizing space, equipment, and people effectively," says Rick Stinchcomb of the University of Oklahoma Press. The things must be both accessible and safe. "Achieving this aim necessitates continuous planning and adaptation."

When we break down, warehouse operations include a wide range of procedures, including receiving, organization, fulfillment, and delivery. 

These are some of the areas:
  • Receiving of merchandise
  • Goods cross-docking
  • Inventory management and storage
  • Asset tracking systems (such as barcodes) are attached to assets and inventory.
  • Using a tracking software, such as a warehouse management system, and keeping it up to date.
  • Managing the implementation of new technology
  • Choosing paths for choosing
  • Developing sorting and packing procedures
  • Keeping the warehouse in good repair
  • Developing warehouse infrastructure and racking designs.
When we breakdown, warehouse operations include a wide range of procedures, including receiving, organization, fulfillment, and delivery. 

These are some of the areas:

Of fact, the aforementioned issues are only a small part of what modern warehouse operations managers must deal with. 

They are, nonetheless, the foundations of storage, features that serve as the foundation for all warehouses, large and small.

That is an article about the principles of inventory control, stock keeping and stock accuracy, please stay tuned in my blog to read more useful articles.

Post a Comment for "Definition Of Warehouse Operations"