Warehouse Management and Storages.

In this short write I will touch base on few concepts from Warehouse management, working into commerce and marketing, I strongly felt that we should get a gist on these concepts. This topic is obviously an ocean but knowing certain concepts will surely help us when going into discovery sessions with the Business.

The Logistics execution can be broadly classified into three.

1.Warehouse management

2.Shipping LE-SHP

3. Transportation LE- TRA

The warehouse management is controlled by Material Management.

The shipping & Transportation is both driven by Sales & distribution (SD).

Components of Warehouse Managment

The warehouse management is divided into 4 components.

• Inventory management.
• Delivery Processes.
• Production control
• Quality management.

Please note: Inventory management can again be divided into Goods received and Goods issued sub processes.

The Organization Structure

• The warehouse number is always linked to storage location and a plant.
• This means that a connection is created btw warehouse management and inventory management.
• The storage location is heart for Quantity based inventory management.
• The storage location is linked to plant & warehouse number is linked to both storage location and plant.
• Every storge location need not be connected to warehouse, meaning the storage location can be a standalone entity also.
• There can be multiple relationship with a warehouse and a plant storage combination.
• The only NO here is a specific plant and storage location cannot be linked to multiple warehouses.

All About Storages.

We all know the Goods are stored, the term “stored” is a simplified word.  I will be writing some gist about storage type, how are they stored in the sections and how it is further divided into bins.

What is a Storage Type?

Storage type is a physical or logical subdivision of warehouse complex that is characterized by its warehouse technique, the space used, its organizational form, or its function.

The storage types can be classified into more, High racks, Fixed bin storage, Bulk storage etc.

What are storage sections?

Storage sections are nothing but the organizational subdivision of a storage type that groups together storage bins with similar features (batch number etc) from the perspective of putting away the stock.

BINS, surely not a Dustbin. 😉

BINS:  Bins are smallest available unit of space in the warehouse

Storage bins have no address, so their naming should indicate their positioning within the warehouse.

Let’s us taken an example to understand more about a BIN. I’m considering the High racks storage type as an example.

Consider the below rack: RACK A.

The RACK A has 8 levels,

Level 01 to Level 08

The RACK has 3 columns- Stack 01 to Stack 03.

So typically, a bin here is A-01-08.

Also, to add more practical inputs here,

1. Fragile items are arranged in the lower rack. Level 01 & level 02
2. Non-Fragile items are arranged higher.

I will writing more about putaways and how the logistics are handled in the next post.

Thanks for reading!