The Oxford Dictionary defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies." When applied to the supply chain, warehouse logistics encompasses shipping and receiving, the flow of materials, inventory tracking, storage optimization, and so much more.
What is the goal of warehousing logistics?
Generally speaking, the main objective for focusing on logistics within warehouse management is to reduce operating costs without compromising the quality of a service or product. By ensuring the warehouse can operate smoothly and efficiently, companies can better regulate the flow of goods between supply and demand.
The Basics of Warehouse Logistics
Large warehouses offer several opportunities for improving operations and logistics. Below are different areas in a warehouse that can be optimized:
- Warehouse layout: Thought of as the baseline for warehousing, creating a new layout will be a big undertaking for the company. Lean uses a cellular manufacturing layout to arrange workspaces in a way that will allow a smooth flow of work and goods.
- Material handling: Ensure handling equipment is installed for an efficient throughput, how these machines fit into the overall layout, and operators are properly trained.
- Storage systems: Maximize the use of storage space by implementing a storage system that meets the needs of production and the target storage capacity.
- Inventory management: Utilizing warehouse management system software to accurately track how inventory moves so there can be control over the flow of materials.
- Safety: Although often overlooked, safety is an important element of warehousing logistics. After all, a safe workplace is an efficient one. Job safety analyses should be performed for operators, OSHA standards reviewed, and warehouse traffic rules established.
Warehouse logistics can run even deeper with a business, extending into supply chain management, security, and even human resources.
Controlled warehouse logistics will benefit any organization's bottom line. When inventory is properly managed, operations run smoothly, and less errors in general, revenue is minimized and your warehouse operates efficiently.
Similar Glossary Terms
- Warehouse Automation
- Cellular Manufacturing
- Inventory Control
- Material Flow
- Inventory Management
- Warehouse Racking
- Perpetual Inventory