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Warehouse Functions And Roles Other Than As Places To Store Goods

Warehouse Functions And Roles Other Than As Places To Store Goods

A warehouse is one part that has a very important role in a company. Why? Because the majority of assets belonging to the company are stored, either in the form of raw material, spare parts, or finished goods or finished goods. 

All assets of the company must be managed and managed properly so as not to cause losses for the company. And for that, we know the term Warehouse Management System (WMS).

During this time we assume that the function of warehouse management is only related to the problem of managing the stock of goods or materials. Such an assumption is not wrong, but less precise. Why? 

Because the warehouse management function includes a lot of other things that also need to be managed and noticed. The management of the stock of goods is only one of the activities in warehouse management.

Broadly, the warehouse can be grouped into three kinds:
  • Raw Material Warehouse
  • Warehouse Finished Goods 
  • Spareparts Warehouse
In addition to the three kinds of warehouses, along with the trend that developed in the world of logistics and distribution, there appears the term of distribution of buffer warehouses which is the length of the warehouse finish goods. 

These buffer warehouses are generally established by companies near their market or market, to maintain the smooth supply of goods to the customer and streamline the logistics costs of the company.

In this article, I will try to review the important things in warehouse management, concerning warehouse function in the company's business activities, outside of its main function as a place to store the company's belongings.

Here are some other functions of the warehouse, namely as follows:

1. As a product Assembling place

The main function of a warehouse is as a place to store the company's belongings. But sometimes a warehouse is also utilized as a place to do assembly or assembly of products before sending to customer or customer. The warehouses are usually a buffer warehouse, where the product will be sent to the customer in the raft first.

2. As a Dispatching site (delivery schedule) product

Another function of the warehouse is to place the product dispatching. In the warehouse, the products are stored for a while and then sent to the customer according to the existing delivery schedule. With the control and the control over the delivery of goods for the better.

3. As a product care venue

A warehouse can also serve as storage that has a function that is to do product maintenance, especially the products that are produced requires special handling to keep the quality awake. An example is processed meat that requires the treatment of cold temperatures so that the quality of the meat is maintained properly.

4. As the place of Re-Packing goods

Also, the warehouse can be used as a place to re-packing or repacking the product before sending it to the customer. In addition to re-packing in this warehouse is also done the sorting process and re-examination to ensure the product is in good condition.

5. As an Inbound and Outbound place of products

A warehouse can also be enabled as a place of inbound and outbound goods. Inbound is a process where the items are received and entered into the warehouse than in doing storage. While outbound is the process of eliminating the goods from the storage before finally sent to the customer.

There is a question, how important is the role of warehouse management for the company's progress?

The role of warehouse management is certainly very important because if warehouse management can be done well it will make a great contribution to the company. For example, it is to make changes in warehouse layout so that movement or moving goods and people in the warehouse can be more efficient will certainly save time in handling goods.

Here are the advantages to be gained by the company if the warehouse management function can run well and efficiently, among others:

1. Eliminate the risk of loss

Management of well-managed warehouses will certainly reduce the risks that are likely to occur and cause harm to the company. An example is a good storage system, a consistent FIFO goods system will eliminate the occurrence of deadstock that is very harmful to the company.

2. Meet Customer demand faster

With good warehouse management, the warehouse can provide information quickly, precisely, and accurately especially to the section PPIC concerning the demand for urgent goods from customers. The information on the availability of raw materials and supporting materials can be quickly given so that PPIC can immediately perform the action or next steps appropriately.

3. Stock Data and materials always Update

The simplest benchmark of good warehouse management is being able to provide information to the other party appropriately. It can be realized if the stock data of goods is always in the state of update and real-time. Filling in the stock mutation data of goods well done will produce real stock data according to the physical goods in the warehouse.

4. As a reference in Re-Order the goods appropriately

The stock condition that is always updated will be very helpful for PPIC in determining when to re-order the supply of the goods to the production process appropriately. If the data is given incorrectly, then PPIC will be wrong in conducting calculations and analysis of the needs of raw materials and other supporting goods.

5. As a reference in determining Cost Price products

It is closely related to the FIFO goods system. In the warehouse management of FIFO implementation is very instrumental in determining how much product cost price, so that later can determine the value of the sale price of the product so that the company's profit remains awake. 

If the use of raw materials is done arbitrarily without the FIFO system then that will happen is the product cost price that is made also wrong.

That's an article about the important things in warehouse management, hopefully, it will useful to you.

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