How to manage warehouses in logistics effectively


Warehouse management in logistics is considered as one of the most important factors to ensure smooth transportation and delivery of goods. With the development of technology, warehouse management software is an indispensable support tool of businesses. Learn how to manage inventory in logistics in the article below!

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1. What is warehouse management in logistics?

In the field of logistics, warehouse management is an important part of the supply chain. It ensures that all products are managed, controlled and tracked as accurately and efficiently as possible. Job warehouse management in logistics This includes managing the storage, transportation and distribution of products. This plays a huge role in ensuring high efficiency and profitability for businesses.

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2. The importance of warehouse management in logistics

To optimize business operations, logistics warehouse management is an extremely important link for businesses. When implementing logistics warehouse management effectively, businesses can achieve the following benefits:

  • Reducing the cost of circulation in logistics-related links.: By optimizinglogistics warehouse management process, Businesses can reduce unnecessary costs in transporting goods from the warehouse to the destination.
  • Reasonable input material cost management: Logistics warehouse management also helps businesses control costs related to input materials, ensuring that these costs are used effectively. most effective and economical.
  • Ensure continuity in the production and supply process: With strict logistics warehouse management, businesses can avoid the risks of loss of time and costs.
  • Optimizing damage to goods: Logistics warehouse management also helps to minimize damage to goods during transportation and storage. This helps businesses avoid zero costs and keep a competitive edge in the market.
  • Improving the quality of preservation and storage of goods in the warehouse: Logistics warehouse management also helps to ensure the quality of goods when they reach consumers, increasing sympathy for the brand.
The importance of warehouse management in logisticsThe importance of warehouse management in logistics

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In short, logistics warehouse management plays an important role in optimizing business activities. Businesses should invest more in this work to achieve the benefits in terms of cost and quality of products and services.

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3. Logistic warehouse management process

Logistics warehouse management process is a system of operations designed to manage, operate and control the import and export activities in a warehouse. This process includes many stages such as counting goods, storing, packing and releasing,... Let's find out the details of this process in the section below!

3.1 Planning for inventory

To have a standard warehousing process, the first step to ensure is receiving the right product, in the right quantity, and at the right time. Failure to follow standard procedures will lead to many potential problems as follows:

  • Non-standard warehoused items will occupy warehouse space, making it difficult to arrange and find products in the future.
  • If the product quantity is not correct, the warehouse manager will have difficulty finding free space to store the product or having to change the stocking plan to match the actual quantity.
  • When goods are warehoused at the wrong time and there is no person in charge of inventory or no suitable storage space, the product will not be stored properly, easily leading to damage and loss, affecting costs. purchasing cost and goods supply schedule.
Planning for warehousing helps to ensure sufficient quantity of goodsPlanning for warehousing helps to ensure sufficient quantity of goods

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3.2 Inventory control

Purpose inventory is to ensure transparency, honesty and accuracy in the entire process warehouse management in logistics. This should be done regularly, regularly, should not wait until the difference is too large to do it. If the delay is too long, it will take a lot of time and manpower to find the cause of the difference and affect the warehouse operation process in the next time, but still not completely solve the problem.

3.3 Handling of damaged goods and quality control of goods

In goods management in logistics warehouses, the quality management of goods is an important step to help ensure the quality of goods during transportation and supply. This step requires carefulness and meticulousness, ensuring the most scientific, reasonable and safest arrangement and arrangement of goods to avoid goods being damaged and causing damage to the business.

If the goods are stacked or not arranged in a certain order, the search and inventory of goods will be more difficult and time consuming. In addition, damage to goods will also affect the reputation of the business. Therefore, the proper storage of goods will reduce risks and ensure the efficiency of warehouse operations.

In the event that goods are damaged due to errors in the storage process, warehouse managers need to handle them immediately. Depending on the degree of damage, warehouse management personnel will have to deal with damaged goods by removing, repairing or reusing the product. If damaged goods are not handled properly, the quality of the product will be affected, or worse, destroy the value of the product.

Handling damaged goods to ensure the operation processHandling damaged goods to ensure the operation process

3.4 Planning for export

When planning the release of the warehouse, the first thing to pay attention to is to pack the product according to the standards. This ensures the convenience of delivery and avoids unnecessary problems during transportation. Each product line will have separate packaging standards. For example, fragile goods need to be carefully padded, food products need safe packaging for health, ...

In the consumer sector, any mistake in the packaging process can lead to product returns and service complaints from customers. Many companies have experienced the loss of important customers because of product availability.

Planning to release warehouse helps ensure the quantity of goods to be delivered to partnersPlanning to release warehouse helps ensure the quantity of goods to be delivered to partners

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In order to ensure the smooth packing and dispatching process, it is necessary to combine the process of warehouse inventory, quality check and balance the quantity of goods to match the time. The additional calculated data of the shortage should be provided in a timely manner. Although the frequency of continuous import and export of warehouses causes great challenges for businesses in balancing and matching data.

However, the complete and correct implementation of these processes will help the warehouse to go smoothly. Besides, warehouse planning also ensures product quality and increases customer's reliability for products and services of enterprises.

3.5 Periodic statistical reports

To ensure quality warehouse management in logistics, the use of corresponding report types for each task criterion is necessary. Types of reports include warehouse book, warehouse report for each branch, report on changes in import and export, inventory report...

However, generating too many reports can lead to difficulties in managing and finding information. Therefore, it is important to increase the frequency of reporting to promptly handle fluctuations and ensure the accuracy of the data used to create the report. From there, the report results will bring high value to warehouse management.

4. Effective ways to manage logistics warehouses

To be effective warehouse management in logistics, it is necessary to apply modern warehouse management methods and regularly update new technologies. The effective ways to manage logistics warehouses below will give businesses a specific perspective on this issue.

4.1 Handling inventory based on FIFO, LIFO and FEFO . systems

For businesses, choosing a reasonable, highly effective warehouse management solution is a prerequisite for success. Currently, there are 3 systems for handling goods in the warehouse, specifically as follows:

  • Applying FIFO (First in - First out) inventory management method for items with short shelf life such as food, technology, cosmetics, confectionery, consumables, etc. previously stocked items, ensuring the use and consumption on time.
  • Meanwhile, the LIFO (Last in - First out) inventory management method is often applied to materials that can be stored for a long time such as construction materials. This solution helps to update prices during periods of market volatility as well as balance production and sales costs for sellers.
  • As for FEFO (First Expired - First Out),  prioritizing the export of items with an earlier expiration date will help businesses reduce inventories of expired products that have not yet been released, and at the same time ensure product quality and meet customer needs.
Three famous management systems FIFO, LIFO and FEFOThree famous management systems FIFO, LIFO and FEFO

4.2 Use of barcodes and warehouse information management systems

In warehouse management, product labeling to differentiate is a must. Enterprises can use SKU codes or combine with barcode scanning systems to create input slips containing product information. This information will be stored and used throughout the process logistics warehouse management process and future inventory management. Businesses can refer to the article "Is it possible to Warehouse management using QR Code ? Advantages and disadvantages ” for more information on how to manage this inventory.

In addition, each business needs to build a professional warehouse information management system from the very beginning. Each process needs to fully ensure basic steps such as: making a warehouse map and disseminating it to employees, controlling incoming and outgoing goods, periodically checking inventory, preparing/picking up goods, closing package and label, deliver the goods to the carrier.

These steps need to be done clearly, assigning responsibility to each person. This will help the organization to make timely adjustments if errors are found to ensure all operations are carried out smoothly and to limit errors.

Using barcodes and warehouse information management systemsUsing barcodes and warehouse information management systems

4.3 Agree on working process and standards with partners

When importing raw materials, enterprises need to agree with partners on packing standards, size, volume, maximum number of products per carton, content of goods information. Delivery time should be notified at least a few days in advance to avoid the situation of large, temporary, non-standard, damaged goods.

The process of receiving goods requires the delivery note of the supplier, counting the quantity, assessing the quality, sealing, transferring the goods to the warehouse and signing for confirmation. Unsatisfactory goods need to be verified, photographed, made a return record and transferred to the legal department to claim compensation if necessary.

Unify the process and warehouse operation with customers before cooperationUnify the process and warehouse operation with customers before cooperation

4.4 Improved picking method

To optimize warehouse management, businesses need to determine the appropriate warehouse size and picking method. With a small-scale warehouse, businesses should apply the method of taking goods by order. That is, each management staff will collect and process their own orders to avoid wasting time and labor costs.

For warehouses that are large and offer a wide range of products, cluster picking is recommended. This means that employees will aggregate the same items from many orders to pick up at the same time, then redistribute them by shopping cart to maximize warehouse management efficiency.

4.5 Application of advanced technology

If the warehouse is small and the volume of goods imported and exported is small, Excel is a suitable solution in this case. However, if the warehouse is large, the number of goods is large and the product models are diverse, Excel can no longer meet the management needs.

To solve this problem, businesses need to use warehouse management software. These softwares will support 100% automatic operation to ensure efficiency and accuracy in logistics warehouse management process.

Viindoo Inventory - An effective solution for inventory management

Software Viindoo Inventory is a solution warehouse management in logistics Designed to meet the needs of freight businesses. This software provides features such as inventory management, automatic import and export, cargo arrangement, transportation management, cost and revenue tracking.

With a friendly and easy-to-use interface, Viindoo Inventory is a good solution for businesses that want to optimize their logistics warehouse management. The feature of automation and connection with online platforms and systems also helps users save time and effort in the process of management and operation.

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The All-in-one Inventory Software for SMEs. Automate your inventory process leading to increased efficiency, accuracy, and ultimately, cost savings.

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In short, warehouse management in logistics is an important step to help businesses optimize operating processes and increase business efficiency. The application of modern warehouse management software such as Viindoo Inventory will help simplify management, optimize inventory and improve cost efficiency in business operations. Call now for more details!

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How to manage warehouses in logistics effectively
Jun Nguyen April 26, 2023

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