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Warehouse Management System (WMS), Make Storage System More Effective

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Warehouse Management System (WMS)

Warehousing is a term used by companies in warehousing activities. Warehousing activities are carried out to store goods produced before being distributed to agents or other company branches in the supply chain in order to reach the end consumers.

The role of warehousing is crucial, because specifics on the manufactured goods can be found in the warehouse includes status, stock levels, product weight, and other information.

As a result, the business can reprocess this data to streamline distribution and create budgets. 

To maximize service to customers, products might be stored or put into a warehouse. Additionally, if the corporation owns extremely suitable warehousing. Forklifts, software, appropriate warehouse space, and knowledgeable warehouse staff are a few examples of adequate warehouse conditions.

Warehouses and warehouses play a significant role in the entire production process as a form of storage. The seamless operation of the system and the operation of other business units will be significantly impacted by the presence of a warehouse.

Therefore, if warehousing operations in the organization's internal system slowed down, it would also have an impact on how well other departments' manufacturing, distribution, and marketing processes ran. 

Additionally, the business will incur all kinds of waste, including financial and time waste. Inactive warehousing operations will also have an impact on the level of production expenses and the market price of goods. Therefore, even if other management systems are correctly managed, the company's performance won't be at its best without a good warehouse management system.

Warehouse and Warehousing

The warehouse is a crucial structure in a business, especially if it manufactures products. A warehouse is a structure that includes a room for the storage of manufactured items as well as the raw materials used to make other goods. While supervising the storage of items in a warehouse is warehousing, an activity.

In warehouse management, organized and planned warehousing is gathered. The organization's need to establish production schedules with constrained inventory levels is covered by the structure and plans. Additionally, offering policies for satisfying orders for raw materials to fulfill production orders or product requests is helpful.

Because they have an impact on the company's revenue, warehouses and warehousing are crucial to its success. The warehousing management system will ensure product quality, preserving product value and enhancing the revenue of the business.

A good warehouse must be organized and well-planned, and it also needs to have a robust service system that includes assurances of security, simple access to incoming and outgoing information, and space for storing items. The warehouse management system must also be compatible with the actual surroundings in which the items are kept.

Types of Warehousing

Every company should be able to decide on the best way to store inventory in order to be more cost-effective, accessible, and easy to maintain. Warehouse is a warehousing management facility which is a storage place that is purchased or rented by a company and then used to store products before distribution. 

In general, when viewed from the location or location of the warehouse, there are two types of warehousing, namely centralized warehousing and non-centralized warehousing.

1. Centralized warehousing

In a centralized warehousing system, all operations and processes related to warehousing are controlled from a single place. The benefit of centralized warehousing is that it is simple for suppliers to transmit production raw materials. 

The business will also profit more because ordering raw materials in bulk will allow it to take advantage of economies of scale. The staff members in charge of maintaining the inventory benefit from the simplicity of putting standard operating procedures into practice.

In order to be more conveniently accessed, centralized warehousing is typically situated close to effective infrastructure. Centralized warehousing can save certain businesses money by preventing stock duplication and administrative expenses.

However, because centralized warehousing necessitates significantly larger storage facilities, it can be expensive. Large and complicated rooms are necessary for centralized warehousing, which will lengthen delivery times and cause stock receipt delays. 

Since centralized warehousing necessitates specialized personnel to oversee stock storage and distribution, it can also lead to exorbitant compensation.

2. Decentralized warehousing

Meanwhile, decentralized warehousing is a type of warehousing where each department is responsible for ordering and storing their own stock. The advantage of this type of warehousing is that it is easily accessible so that there is no delay in receiving the required goods. 

A decentralized warehouse management system is considered more effective to prevent waste because it is spread over several places or locations. In addition, companies can be more responsive to local needs and actively follow market changes.

However, decentralized warehousing will result in increased shipping costs due to low inventory levels to some locations. In addition, the security factor may not be as effective as centralized warehousing, as it is prone to product embezzlement or product theft.

General Guidelines for Warehousing Management

Warehouse Management System

The logistics/goods activities in the warehouse are managed using the warehousing management system, which also includes operational management for the business. Thus, administration, work processes, and spatial planning will always be included in warehousing management. These procedures involve the handling, cataloging, importing, storing, controlling, accounting, maintaining, issuing, and dispersing of goods.

The warehouse manager is required to provide an accountability report for each process. In order to improve the company's overall operational effectiveness and efficiency, a system of work units will be supported by the series.

Therefore, warehousing activities must be carried out by planning, organizing, and controlling measurable goods with warehousing management in accordance with the guidelines. There are several things that can be used as general guidelines in warehouse management, namely:

Social services at the center and in the regions are:

  • Maintain smooth receipt and expenditure of logistics/goods.
  • Maintain administrative order of warehousing.
  • Properly storing logistics/goods so that they are easy to check and retrieve when they are about to be distributed.
  • Arrange the layout of goods properly so as to ensure the safety and security of goods and workers.
  • Take good care of goods.

Activities in Warehousing Management

The warehousing administration process cannot be separated from the activities or activities in the warehousing management system. Because warehousing administration can be utilized as a tool for oversight and control in warehousing management, activities in warehousing management must be orderly and accurate. 

The existence of products can be managed in detail at any moment, including names, types, specifications, amounts, mutations, evidence of the amount of inventory, as well as the value of goods contained/stored in the warehouse, if the organization adopts the proper warehousing administration system.

Warehouse officers are responsible for warehousing administration, which is a mechanism for accountability in warehousing management. In actuality, warehouse officers must oversee warehousing operations and finish warehousing administration systems including delivery orders, travel documents, and books for products receipts and releases.

Receiving, releasing, and organizing commodities are tasks in warehousing management that are closely related to warehousing administration.

1. Goods Receipt

The receiving of goods is the initial step in managing a warehouse. The warehouse clerk needs a receipt book for this task. The products receipt book will contain all data pertaining to the type of goods, their specifications, the date of receipt, and the logistics value overall (unit price and total from the source of the items).

Additionally, once logistics or commodities are entered into the record book, it must be accompanied by proof of receipt of the products, such as a letter of delivery or delivery of goods receipt. A code number that corresponds to the code of the goods in the order must be written on each proof of entry of goods. 

In the code number field for the proof of goods put in the warehouse receipt book, the code number is the code number for the proof of incoming products. The proof code number of the entering items is helpful for checking and keeping track of the inventory's availability in the warehouse.

2. Expenditures

Furthermore, there is the activity of releasing goods which is the responsibility of each warehouse officer. In the goods release book, the warehouse clerk must fill in some information related to the type of goods, the specifications of the goods, the date of issuance, and the number of goods that came out. 

The purpose of filling out the expense book is so that later it can be known the amount of inventory for each particular type of item. The issuance book must be followed by evidence of the release of goods which can be in the form of a Delivery Order (letter of delivery of goods) and a travel document. 

Each proof of release of goods must be numbered in order. The code number for the proof of goods exit must be entered into the code number column for the proof of goods exit code in the warehouse receipt and inventory card. With this inventory card,

To complete the warehouse administration, the company must provide an inventory card that is useful for recording changes in the amount of logistics inventory due to the entry or exit of goods. 

Some of the information that must be written on the inventory card includes the type of goods, specifications of the goods, date of entry, date of exit, code number of goods, proof of entry of goods, proof of expenditure, origin of goods, destination of goods issued, number of goods entered, number of goods out, and the rest of the goods after warehousing administration management activities. 

Inventory cards must be made in duplicate, one for archives and another for hanging depending on the type of goods placed. Thus, monitoring and checking activities by warehouse officers will be easier and faster.

3. Item Arrangement

The action of setting up different room configurations and positioning items within the warehouse is known as warehouse goods arrangement. In order for the process of receiving and releasing items in the warehouse to run smoothly and remain under control, warehouse management officers must always pay the utmost attention to warehouse space management.

There are several warehouse space layouts that must be considered, including the following:

The warehouse space must be managed properly in order to measure the storage distance as short as possible so that space is maximized for storage of goods.

Arrangement of goods should be arranged in an orderly order from one place to another.

Arrange with the FIFO method (first in first out) or LIFO (Last in .) method

last out).

Spatial planning must facilitate monitoring activities so that if there is a discrepancy, it can be addressed immediately.

The flow of goods in and out of the warehouse must consider the ease of carrying out warehousing management activities.

That is an article about Warehouse Management System (WMS), Make Storage System More Effective. Hopefullu, it will be useful for you.

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