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Warehouse Management


Warehouse Management
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Warehouse ManagementManaging a large warehouse is a very challenging job and requires appropriate skills. In many companies, warehouse management is at the top level which requires a lot of money, as well as a lot of investment is involved in the facility. Why do warehouses need to be managed carefully?

Of course, the activities in the warehouse every day are not small. There are possibly hundreds of orders being received per day and all of them require individual consolidation, packing, and shipping using hundreds of carriers. These various kinds of activities need to be controlled so that the warehouse can function properly. 

For example, for the long and medium-term, capacity planning needs to be done to ensure that growth can be accommodated so that when the seasonal peak can be met at the required level. In short-term planning, detailed workload planning is needed to ensure that the required equipment and staff are available as needed.

In addition to planning, another thing that needs to be considered in warehouse management is the existence of a risk assessment to examine potential hazards, prevent hazards, and minimize damage. For example, manufacturing for truck driver positions, picking and packing stations. 

These regulations are usually issued by the Storage Equipment Manufacturers Association (SEMA) in the UK and the Fédération Européenne de la Manutention (FEM) in Europe.


Continuous performance measurement to monitor process improvement. The warehouse needs to be operated under strict service, cost standards, and failure to achieve some goals simultaneously, such as minimization of costs, on-time delivery, and accuracy of order. 

The importance of this monitoring is because the warehouse is the last place before the goods are sent to consumers, so it needs several measurements to ensure the warehouse works effectively. 

These measurements include:
  • Percentage of orders dispatched on time
  • Percentage of orders fully satisfactory
  • Accuracy of order fill
  • Stock availability in the warehouse
  • Order lead time
  • Returns and customer complaints
Operational Efficiency:
  • Number of items taken per person per hour
  • Number of orders taken per person per hour
  • Equipment operating time
Cost Efficiency:
  • Cost of goods
  • Cost per pallet
  • Fit for resource
  • Percentage of pallet capacity used
  • Number of hours used equipment
  • Standard working hours
Completeness of Inventory:
  • Percentage of locations with inventory Correct
  • Percentage of SKUs with correct inventory
  • Stock turn
Cycle Time:
  • Average amount of time between the arrival of goods on location and storage to the warehouse
  • Average amount of time between orders from customers and delivery to customers
  • Number of days without accidents
  • Time for training on safety
  • Compliance with safety and hazard audits Monitoring
  • Number of days of skill training
  • Percentage of multi-skilled staff
  • Absence and illness rate
  • Use of electricity and gas
  • Recycling of water
Operational Parameters:

When monitoring is carried out, there needs to be a parameter as an indicator of whether warehouse management monitoring is being carried out properly. 

These parameters include:
  • Throughput
  • Number of SKUs
  • Unit load
  • Characteristics of product
  • Lines per order
  • Units per order line
  • Added value requirements
Hopefully this article will useful to you.


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