Warehousing refers to the process of storing and managing raw materials, work-in-progress and finished goods in a warehouse or other storage facility. This includes the receipt, storage, movement and dispatch of these materials, as well as the management of inventory levels and the maintenance of the warehouse itself. Warehousing plays an important role in the manufacturing process by ensuring that materials, parts and components are readily available when they are needed, while keeping inventory levels in check and reducing waste. It also ensures that finished goods are safely stored and readily available for shipment to customers. Advanced warehouse management systems and software can be used to automate and optimize many of these activities and provides the needed visibility and control over the warehouse operations.

Warehousing Content

Developing a warehouse and supply chain strategy

For good or bad, our COVID-19 crisis shows the global impact of supply chain and warehouse protocols.

U.S. supply chain experts are weighing in on what can be done to make our supply chain more resilient now and after the COVID-19 pandemic abates. How will your company adapt its supply chain to respond to future global shocks?

Streamline your delivery systems

A high technology manufacturing facility in Mexico was not meeting customer delivery dates. Daniel Penn Associates assessed their warehousing and logistics operations.  As a result, we implemented improvements to satisfy customer delivery requirements.

The project addressed multiple issues: materials management, purchasing, receiving and receiving inspection, stock locating, inter-plant transfers, transportation, manpower loading, supplier integration, inventory replenishment, and reorganization.

To meet the client’s objectives, we implemented corrective actions including:

  • Redesigning the receiving and inspection process
  • Developing a staffing matrix for warehousing operations based on workload and performance standards
  • Consolidating three warehouse operations into one
  • Establishing transportation runs and frequency between plant and warehousing operations
  • Establishing materials and purchasing replenishment processes
  • Implementing accurate inventory transaction and tracking solutions
  • Redesigning the materials flow process between warehousing operations in the US and Mexico
  • Designing and implementing a warehousing management reporting system for tracking performance and conducting root causes analysis

How-to’s and success stories

How we work

Daniel Penn Associates can tackle and solve your receiving, storage, layout, shipping and distribution issues. We get to the bottom of your door-to-storage, storage-to picking, and picking-to-shipping woes.

Our process involves talking to employees who do the receiving, storing, picking and shipping. Examining how staff levels and picking tactics can support shipping requirements. Evaluating how space and cube storage systems affect warehouse layout. Learning how packing and shipping materials are used and disposed of. Evaluating equipment and product placement, process flow and congestion.

Based on our evaluation of your supply chain, warehousing and delivery systems end-to-end, we’ll recommend and help you implement improvements that support your vendors, employees, distributors, and customers.

This article originally appeared on Daniel Penn Associates’ websiteDaniel Penn Associates is a CFE Media Content Partner.

Warehousing FAQ

  • What is the importance of warehousing to a manufacturer?

    Warehousing is an essential component of supply chain management for manufacturers. Warehouses are used to store and organize raw materials, components and finished goods. Warehouses play a vital role in the supply chain of manufacturers by allowing them to store, manage and distribute their products effectively and efficiently.

  • Why are warehouses important to the supply chain?

    Warehouses are important to the supply chain for several reasons:

    1. Inventory Management: Warehouses are used to store and manage inventory levels, which can help to ensure that the right products are available when needed. This can help to reduce stockouts and overstocking, which can lead to lost sales and increased costs.
    2. Cost Savings: By having a warehouse, businesses can buy raw materials and products in bulk, which can lead to cost savings. They can also store products close to the point of consumption, reducing transportation costs.
    3. Flexibility: Warehouses provide businesses with the flexibility to respond to changes in demand by adjusting inventory levels. This can help to ensure that products are available when needed, which can help to maintain customer satisfaction and improve the bottom line.
    4. Quality Control: A warehouse can also be used to implement quality control measures, such as inspecting and testing products before they are shipped. This can help to ensure that products are of high quality and that customer complaints are minimized.
    5. Distribution: A warehouse can also be used as a hub for distribution, allowing businesses to ship products to customers and retailers efficiently and quickly.
    6. Logistics: Warehouses play a key role in logistics, as they allow businesses to store and organize products and plan and coordinate the transportation and distribution of goods.
  • What are warehousing and logistics in the supply chain?

    Warehousing refers to the storage and management of inventory levels of raw materials, work-in-progress products and finished goods. Warehouses are used to store and organize products and are essential for inventory management and quality control. They also play a key role in distribution, as they serve as a hub for shipping products to customers and retailers. Logistics refers to the planning, coordination and execution of the movement of goods from one place to another. Logistics management is crucial for ensuring that products are delivered to customers on time and in good condition.

  • Does warehousing fall under supply chain management?

    Yes, warehousing is considered a part of supply chain management. Supply chain management is the coordination and management of all activities involved in the production and delivery of a product or service, from the sourcing of raw materials to the delivery of the final product to the customer.

Some FAQ content was compiled with the assistance of ChatGPT. Due to the limitations of AI tools, all content was edited and reviewed by our content team.