A warehouse is a facility that is generally located in a company factory. Based on an article from the Journal of Sharia Economics & Economics (JESYA), the warehouse serves to store all production needs ranging from raw materials to manufactured goods that are ready to be sold to consumers. In managing the warehouse, the company needs to ensure the availability of all orders by using a warehousing management system. Reporting from our previous article, warehousing management systems can help companies to increase efficiency, productivity, reduce costs, and improve customer satisfaction. Therefore, understanding and expertise in implementing the latest warehousing management practices is an urgency for today's companies.

Understanding Warehousing Management

With urgency related to understanding warehousing management, we will discuss further starting from the understanding, concepts, principles used, how to evaluate, and tips on choosing the right warehousing management system. Reporting from hashmicro.com, warehousing management is defined as the activity of regulating and controlling all elements in the warehouse and ensuring all orders run optimally. Meanwhile, according to crewdible.com, warehousing management is a technique of controlling and managing goods in the warehouse which plays an important role in the running of a process of storing goods. Based on these two understandings, it can be concluded that in essence warehousing management is an activity carried out to control and manage all goods contained in the warehouse so that storage activities can run optimally.

Warehousing Management Concept

The concept of warehousing management has been used for a long time, which is around 2,600 years BC. In fact, in the industrial revolution in the 18th to 19th centuries, warehouses were not only used as storage places for goods but also used as efficient distribution points. The concept of warehousing management is a goods control system which includes receiving, collecting, storing, and distributing goods.

Principles of Warehousing Management

The design of warehousing management aims to control the activities contained in the warehouse so that it can save in terms of costs, effectiveness in storing and dispensing goods, and facilitate the search for information on goods in the warehouse. In carrying out warehousing management activities, there are three principles that must be established, namely:

Supervisory Principles

Supervision is very important in warehousing management because these activities function to ensure the existence of goods stored in the warehouse. With good supervision, it can prevent the loss of goods. The application of this principle of supervision administratively in the warehouse can be done by recording incoming and outgoing goods.

Principle of Maintenance

Every item stored in the warehouse needs to be maintained properly to avoid damage that can cause losses. Some things that need to be considered in storing goods such as temperature, humidity, cleanliness, and warehouse security.

Storage Principle

Storage of goods in the warehouse has a very important aspect because it functions in ensuring the smooth and safety of employees' work. The activities carried out in this stage are:

a) Determine the exact storage location of goods based on the criteria of the goods to be stored. This will maximize warehouse utilization and facilitate the process of finding the goods needed.

b) Determine how to store goods so that it can facilitate employees in storing and returning goods from the warehouse so that they can be more effective and efficient.

Warehousing Management Evaluation

In order to realize optimal warehousing management, an evaluation is needed to measure the success indicators of warehouse management. Here are the indicators:

1) Admission Process

In the process of receiving goods, it is necessary to check and collect data related to how long the time is used to receive goods, record incoming goods, and place the goods received. Inspection and data collection of incoming goods if done manually certainly takes a long time. Therefore, an automated system is needed that can be a solution in warehousing management.

2) Order Pickup

In the return of the order, it is necessary to know the cause of the return of such items by the customer. Some of the possibilities that cause returns include product errors, address errors, shipping delays, damage to transit, and many more. By analyzing the problems that cause the return of goods by customers, it is hoped that these problems can be minimized and warehousing management can run more effectively.

3) Retrieval Process

In the process of picking goods, measuring the accuracy of the process is important. In this regard, measurements can be made with the picking accuracy formula so that an accurate amount of the process of picking goods will be obtained. An accurate amount can facilitate the data collection process and improve the optimality of warehousing management.

4) Lead Time

Lead Time can be defined as the time taken by the customer to receive the order or also referred to as the order lead time. Short lead times will increase customer satisfaction. Therefore, in shipping goods it is necessary to ensure that the goods will arrive quickly and precisely without the slightest lack of condition of the product.

Choosing the Right Warehousing Management System

A warehousing management system can take over almost the entire warehousing management process by automating and digitizing various types of processes. An automated warehousing management system can help companies to carry out warehouse management that is more organized, tracked, and well documented. Thus errors caused by human error can be minimized. In determining the warehousing management system there are several aspects that must be considered:

a) The ability to organize warehouses so that numbering, labeling, storing, picking, packing, and shipping goods can be done faster.

b) Multi-warehouse management can make it easier to manage store branches located in various locations.

c) Integration with other automated systems such as asset management systems, project management systems, and others can optimize warehouse management system processes.

d) Real-time reporting and monitoring that can be accessed anytime and anywhere to obtain information directly and record all activities in the warehouse such as entry and exit of goods, amount of inventory, and so on.

The Importance of Warehousing Management System

Warehousing management system is very important in the operation and management of warehouses efficiently. Companies can improve the efficiency, accuracy, and management of warehouse inventory not only in terms of labor but also cost. By implementing the right system, companies can optimize warehousing operations, reduce costs, and increase customer satisfaction so as to create trust. Related to this, Tomps has an innovative solution called Tomps Building which can be trusted as your company's warehousing management system. Various features owned by Tomps Building can help your company to be able to manage management optimally. Let's find out more about Tomps Building. 

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