A warehouse distribution logistics segment is a very important element of the entire supply chain as it houses inventories, consumables, and other stores. Different raw materials are primarily received by warehouse staff and subsequently stored in bins and racks of the warehouse. It is because of the warehouses that the inventory movement can be seamlessly facilitated to different places and at different times of the year. The presence of warehouses tends to add time and place utility to the goods. But managing a warehouse isn’t as simple and easy as it looks.
It has to deal with the procurement and the production department, along with this it has to report to the accounts and planning department as well. Small businesses engaged in the activity trading of goods generally get a warehouse for rent as getting warehouse space for rent helps small businesses save cost and achieve better operating performance. In the modern context, businesses generally have a dedicated warehouse distribution logistics team to handle any kind of shipment at par with international standards. Let us look at different components of managing a warehouse:
Receiving Inventory
A warehouse frequently receives inward supplies from other companies in the form of raw materials and consumables. Receiving and inspecting the inventory, diverting it to different places in the warehouse, and completing documentation pertaining to receipt and recording of goods are key responsibilities that are accomplished at the warehouse location. Also, in today’s integrated operating environment, the warehouse prepares online inventory receipt vouchers to record the receipts of multiple natures.
Facilitating Outward Inventory Movement
The warehouses are equally responsible for giving effect to inventory clearances as the customer orders are generally expedited by sending goods out of the warehouse only after doing necessary paper-based compliance work. Though it becomes noteworthy that outward movement may be of certain types ranging from sales, goods return, or scrap being sold out, specific movement type is to be recorded in the inventory management software in order to record the inventory movement. Also, there are other formalities that are done in accordance with related business customs like the creation of gate-pass when the goods take exit from the company premises, something which eventually is given effect to by the warehousing team only.
Stock-Taking Exercise
Another very daunting task that is taken care of by the warehousing department is probably the stock-taking exercise that warehouses have to periodically undertake. This stock-taking exercise done by the warehouse ascertains the inventories available at hand, which is ideally matched with data reflected in inventory books. This way, warehouses play a very significant role in enforcing inventory control policies that encompass stock-taking, extrapolating slow and non-moving inventory, assisting technical teams in determining the scrap goods, taking care of the physical condition of storage at the warehouse.
Periodical Reporting
A warehouse is also required to prepare and furnish different stock-related data to assist the planning and budgeting team in the process of review and management of working capital. Since warehouses are generally located away from administrative offices, warehouses bear a professional and ethical responsibility to send certain relevant inventory data by incorporating the same in different formats and reports.
Thus, on perusal of the above points, the key role of warehouses is judged. The businesses reduce the seasonality of the agricultural produce by storing the same in storage facilities available as a warehouse for rent. Many remotely located businesses do get warehouse space for rent from the persons engaged in the business of leasing or renting warehouses, storage facilities, or open yards.
