Modern warehouse logistics

Goods, products, raw materials need storage. They participate in the turnover in accordance with the development plans of the company and are placed in warehouses. That is why warehouse logistics is so important. It uses theoretical base and practical skills to optimize the process.

Tasks performed by modern warehouse logistics

This is a set of measures that consists in different actions aimed at achieving one goal, that is, optimization. So, modern warehouse logistics is an analysis of incoming information about the efficiency of using warehouses and other sites for storing goods, products or raw materials. In addition, it performs the following tasks:

  • Analyzes the methods of working with consignments of goods, choosing the most effective ones, allowing you to optimize and control the process as much as possible.
  • Development, study of the logistics process at a specific point, at a specific warehouse. General methods are used, but the specifics of the business are also taken into account.
  • The optimal number of warehouses is calculated, the desired layout and configuration are selected. As you know, these premises differ not only in area, but also in belonging to one class or another. For example, class “A” warehouses are considered the best, since they were originally built precisely as storage facilities for goods. There are also other warehouses that have been converted from utility rooms. According to some indicators, they are inferior to analogs of category “A”.

Yes, warehouse logistics is an understanding that the success of the company, good trade performance, and the number of customers largely depend on the organization of storage and goods movement. This is true for many other enterprises and organizations.

Correct arrangement of warehouse operation

An effective collection of logistic information, accounting and inventory are performed. In this way a normal workflow is ensured. In addition, the following table will help you understand what the arrangement of warehouse operation is:

Warehouse technical performanceAutomation, the ratio of automation and mechanization, the specifics of equipment
Products for which this particular storage facility has been selectedAs a rule, these are tools, raw materials, finished goods, containers, processing waste, components and consumables. They are also divided into food and nonfood products.

Correct arrangement of warehouse operation is a whole process that takes into account the specifics of the premises from a constructive point of view. So, there are one-story, two-story or even multistorey warehouses; indoor and outdoor; ordinary or insulated, prepared for use in any seasons, there are also analogues with awnings. When organizing the warehouse operation, it is also taken into account whether these structures are leased or belong to the owner of the company. Thus there may be internal bases of the enterprise, temporary logistic demountable constructions.

The importance of the warehouse management

Warehouse is the movement of goods, accounting and control. The modern warehouse management traditionally divides the movement of any material objects and valuables ​​into categories:

  • Internal movement of material valuables
  • Incoming
  • Outcoming

That is, loading, unloading and moving of the objects within the company, inside the warehouse. It is here that transport, warehouse logistics, sorting and labeling take place, the costs of cargo delivery, their redistribution among vehicles are optimized. The warehouse management is also the performance of the employees. They collect batches, complete orders in accordance with the customer preferences.

In the process of warehouse management, it is important to regroup the goods quickly, collect the batch required by the customer, prepare the documents for transportation, that is, make consignment notes. Personnel database everything so that the movement of commodity groups is displayed in logistic accounting reports. The movement of goods occurs automatically or mechanically, for example, using loaders or collectors.

Efficient operation of warehouses

The main principle of operation is the optimal use of space. Therefore, a suitable layout is selected. Everything is divided into compartments that have their own purposes. Typically, logistics warehouses have the following compartments:

  • Goods issue area.
  • Sorting and marking area.
  • Storage area.
  • Returned goods collection area.
  • Order packaging area.

Of course, this is an approximate list, since logistics warehouses largely adapt to the specifics of business, product features. In most cases, similar products are located nearby, in the immediate vicinity. Not only horizontal, but also vertical storage in the warehouse is extensively used and shelving equipment is of help here. The number of tiers can vary, but in most cases there are no more than five of them.

In addition, in logistics warehouses equipped in accordance with the rules, the optimal aisle width is also considered. It should be sufficient for a person to walk easily along the aisles and for small warehouse equipment to move without problems. As a rule, these are lift trucks of different types.

Modern warehouse logistics in Ukraine

In many respects, foreign experience is adopted, because this area began to develop intensively a little earlier than in Ukraine. Today, modern warehouse logistics in Ukraine also takes into account local realities and legal requirements. There is no secret that many standards differ, including fire safety, sanitary and hygienic. In all countries of the world there is a tendency to toughen the requirements for the functioning of the warehouse in order to guarantee the safety of life, health of people, and the safety of property.

Ensuring the safety of objects in the warehouseThey must be protected from damage, theft, loss. For this, modern equipment and technologies are involved. The quality of packaging is also checked.
ProfitabilityIt means the efficiency of the links in warehouse logistics, the ability for several people to work simultaneously, performing different logistics operations.

In modern warehouse logistics in Ukraine, the throughput capacity and the speed of each procedure are taken into account. Such factors as energy consumption required for the warehouse maintaining, operation rate of equipment, route optimization for the movement of goods inside the premises are also studied.

What does the warehouse management begin with

This procedure also involves several stages aimed at achieving a single goal. To begin with, organizing the warehouse operation means choosing a suitable premises, carrying out calculations. It is also very important to estimate costs. It will clearly show what is more profitable to buy a warehouse or to rent it. The following factors are also taken into account. They are: features of the nearby infrastructure, storage area, the ability to place racks and racking equipment in several tiers. 

Also, when organizing the work of a warehouse, it is necessary to take into account the specifics of packaging, for example, pallets, boxes. It is important to select appropriate equipment for transportation and lifting. As a rule, entrepreneurs choose comfortable racks. But here the choice won’t be so simple either, since there is a huge variety of racking equipment for the warehouse, which differs in the maximum allowable load per square meter, the number of tiers, compartments, dimensions, the ability to fix narrow or wide aisles.

Lots of things depend on the qualifications of the staff as well as their motivation. The managers who organize the warehouse operation, in most cases, have a university degree in logistics. Practical experience, knowledge in logistics, forwarding, auditing, information technology, financial reporting, and inventory are also welcomed. That is, in fact, he is an expert able to perform various (related) functions. There is no surprise that warehouse logisticians and auditors are the most well-paid jobs not only in Ukraine, but also in the world.

Management of warehouse operation is a profitable investment in the company’s success

That is true, that in order to equip everything properly, to establish logistics, to introduce automated programs that minimize manual labor in the warehouse, investments are required. Sometimes these investments are quite substantial. But if everything is calculated correctly, such expenses will definitely pay off, since they:

  • Allow you to abandon some of the costs in logistics.
  • Reduce the time for customer service, packaging, sorting, labeling, preparation for shipment.
  • Allow you to reduce manual labor in the warehouse and get rid of the so-called “human factor”, since the processes will be automated
  • Help to establish monitoring and control. The high quality of Wi-Fi is demanded, since it must cover the entire warehouse area, including the upper tiers and floors.

High-quality modern warehouse logistics in Ukraine means not only a successful launch after preliminary preparation and the search for a suitable premises, but also subsequent control. That is why auditors are occasionally invited for an independent assessment, to identify the efficiency of the warehouse. The efficiency is influenced by many factors, even the height of the ceilings, the specific features of finishing materials in the warehouse, ventilation in the room, heating, floor material, its thickness, the ability to carry out various loading and unloading operations. Convenient access to the warehouse and the safety of logistics are also important.

Other aspects you need to know when organizing warehouse logistics

It is necessary to decide on the storage units: pallets, nets, boxes. It is also taken into account whether the warehouse belongs to a production, trading, forwarding, transport or logistics company. Some premises can be operated all year round, while others have a defined seasonal focus. There are specialized, multipurpose or mixed warehouses. Depending on the equipment, warehouses can be automatic, mechanized, automated or non-mechanized ones. It is advisable to choose some warehouses with a good access or even with railway sidings. Everything depends on the specifics of the company’s operations.

Warehouse logistics should be aimed at optimizing business chains, convenient unloading and collecting. It should also be environmentally friendly. This issue has become very urgent recently.

Documentary support

The unitization of goods is often carried out in the warehouse, which means the formation of large lots from a variety of small ones. This allows you to reduce costs, since the delivery will be provided to several customers at once. The main principles of a successful warehouse launch are the correct choice of premises, taking into account area and location, selection of suitable equipment, optimization of the information flows, correct staff selection, reporting, accounting and control. Any movement of goods must be reflected in the database, in documents.

A journal of goods arrival is also kept, the grant of power of attorney is registered; there are receipts, material cards, invoices allowing the release of materials. As you can see, the list of documents is quite impressive; most of them imply the possibility of online drafting with entry into a single logistics database and with subsequent archiving.

The main experts working in the warehouse are markers, pickers, packers, loading operators, accountants, storekeepers, loaders, security. They report directly to the manager, the head, who is responsible for the correct logistics, compliance with the interaction algorithms of employees with each other and with customers. Occasionally, it is important to check all the aspects, including, for example, the quality of the packaging, protective film, marking, the application of all information regarding the specifics of the goods in the warehouse, manufacturing date, information about the manufacturer, and so on.