The course covers the following topics related to advanced warehouse management:

Key Features of Advanced Warehouse Management

• Workflows
• Picking and packing
• Wave processing
• Inventory counting
• Containerisation
• Mobile communication
• Material handling
• Support for cross-docking
• Sales order return management
• Enhanced reservation hierarchy

Features of Warehouse Management Systems

• Warehouse design
• Inventory tracking
• Receiving and put-away
• Picking and packing goods
• Shipping
• Labour management
• Yard and dock management
• Reporting

Types of Inventory Control Systems

• Perpetual inventory system
• Periodic inventory system
• Barcode inventory system
• Radio-frequency identification (RFID) inventory system

Benefits of an Advanced Warehouse Management System

• Reduced inventory costs
• Reduced labour costs
• Increased storage capacity
• Increased inventory accuracy
• Complete process control
• Advanced functionality
• Operational transparency
• Integrated labour management

Features Influencing the Choice of Warehouse Location

• Desired customer base
• Proximity to carrier services
• Storage requirements
• Workforce availability
• Longevity
 Factors Influencing Warehouse Design and Layout
• Product
• Space
• Equipment
• Circulation of goods
• Personnel

Aspects Considered When Designing Warehouse Layouts

• Make most of available space
• Reduce handling of goods to a minimum
• Provide easy access to the stored product
• Ensure highest rotation ratio
• Offer maximum flexibility in product positioning
• Control amounts stored

The course covers the following topics related to advanced warehouse management:

Key Features of Advanced Warehouse Management

• Workflows
While a warehouse is generally considered the 'middleman' between
manufacturers and customers, it holds greater relevance than most people think if
the warehouse workflow efficiency can be improved.

With increased e-commerce platforms and customer demands for prompt product
delivery, warehouses are proving effective at fulfilling those demands.

Warehouse IoT operations consist of many moving parts and functions working in
tandem to ensure the correct product is received from the manufacturer, stored in
the prescribed manner, and then delivered to the customer as per their
requirements.

Every warehouse workflow must work smoothly to identify bottlenecks and

improve productivity.

6 Primary Warehouse Processes

The six key warehouse processes are receiving, putaway, storage, picking,
packaging, and shipping. You Warehouse managers can streamline these
warehouse processes, lower costs, and mistakes, and increase the percentage of
perfect orders by optimizing these six processes.

1. Receiving
The first and most essential warehouse workflow operation is receiving. The
warehouse must confirm that it has received the right product in the proper
amount, in the appropriate state, and at the correct time to properly carry out
the warehouse receiving process. Failure to do so will have adverse effects on all
procedures that follow.

Transferring ownership of the products to the warehouse is another aspect of

receiving. As a result, the warehouse is responsible for keeping the goods in
excellent condition until they are shipped. Warehouse associates can filter out
damaged products and escape responsibility by properly receiving cargo.

2. Putaway
The second warehouse workflow procedure, putaway warehouse, involves
moving merchandise from the receiving dock to the best warehouse storage
location. The productivity of a warehouse business can be hampered by failing to
place goods in their most advantageous location. There are several advantages
to correctly storing goods, including:

 Faster and more effective cargo storage

 Less time is spent traveling.
 Product and staff safety is guaranteed
 The use of the warehouse area is maximized
 Finding, tracking, and retrieving cargo is more straightforward and quicker.

3. Storage
In a warehouse, storage is the procedure by which items are put in the best
storage location for them. When carried out correctly, the storage procedure
completely utilizes the available space in the warehouse and improves labor
productivity.

4. Picking
To fill customer orders, picking is the warehouse workflow procedure that gathers
products in a warehouse. As the most expensive process in the warehouse,
accounting for up to 55% of all running costs, optimizing this process will
significantly lower costs and boost warehouse productivity.

Since errors can negatively affect your customers' happiness, streamlining this
process should also concentrate on achieving higher accuracy.

5. Packing
The warehouse process known as packing gathers selected items into a sales
order and gets them ready to send to the customer. Ensuring that there is as
minor damage as possible before the things depart the warehouse is one of the
main tasks of packing. Additionally, packaging in warehouse needs to be minimal
and light enough to control expenses while preventing the goods from becoming
heavier.

6. Shipping
Shipping is the first step in moving goods from the warehouse to the consumer.
Shipping is deemed effective only when the proper order is sorted and loaded,
sent to the appropriate recipient, transported via the right means of transportation,
and delivered promptly and safely.

Need for Improving Warehouse Efficiency

Managing a warehouse can be a demanding job. Small- and medium-sized

warehouse managers face many challenges in optimizing warehouse workflow
efficiency and increasing revenue. They constantly grapple with the
following warehouse challenges:
Budget constraints
Small and medium business owners don't have the luxury of a vast budget and
must constantly stay within budget constraints to increase warehouse workflow
efficiency.

Ensuring stock availability for small and frequent orders

E-commerce is proliferating, and warehouses must quickly adapt to fulfill smaller
multi-line orders at a higher frequency. Lead times also need to be shortened to
speed up the delivery of products to the customer.

Poor preparedness for seasonal demands

Demand during the holiday season can skyrocket, requiring warehouses to stay
prepared early for enhanced warehouse workflow efficiency. An increase in
pressure can lead to errors and misplacement of products which also need to be
checked.

Managing availability and cost of labor

Availability of labor is a very fluctuating issue. The ongoing pandemic has added
to the challenges in workforce availability. Managers need to be prepared for
labor strikes, illness or injury to people in the workforce, hiring new candidates,
cost of labor, and much more to improve warehouse workflow efficiency.

Improper management of data and multiple delivery

channels
Managing data about every single inventory movement can be challenging if
done manually. It gives rise to erroneous records, lost data, or inaccurate
inventory statistics across multiple delivery channels that hamper warehouse
workflow efficiency.

Struggle to bring down operational costs

Warehouse managers have to devise ways to cut operational spending and not
break the bank. While complying with monetary restrictions, managers must also
focus on improving warehouse workflow efficiency and customer satisfaction.
How To Improve Warehouse Workflow Efficiency?

Leverage Automation and digitization

Warehouse operations still involve a lot of manual processes that are liable to
delays and errors. Employees spend most of their time locating, picking up items,
and moving back and forth to the entire warehouse to improve warehouse
efficiency.

Intense manual efforts can lead to miscalculations, wrong pickup, inaccurate

inventory count, and sub-optimal picking rates.

Implementing advanced Warehouse management workflow and orchestration

software can establish a standard workflow for employees to follow throughout
the order fulfillment cycle and improve warehouse efficiency.

It can capture product data in real time, creating an optimized path for pickers to
follow and complete the order in the shortest time possible.

Solutions (like Hopstack) combine advanced analytics and Order picking

automation to improve efficiency They provide accurate insight on picking,
packing, shipping, and inventory count for streamlining goods and parcel
movement, significantly reducing errors arising from manual processes.

Read Also - Digital Transformation of the Warehouse

Optimize your Warehouse Storage

How a warehouse stores its inventory and manages the available storage space
is crucial to improve warehouse efficiency.

Disorganized shelves, cluttered employee workstations, and improper use of

vertical space can cause picking delays, misplace items or provide an inaccurate
inventory count.

Optimizing warehouse storage lets you store more inventory without expanding
the square footage.
Labeling packages properly, segregating stocks based on different parameters,
using taller storage systems, additional shelves for other sized materials,
standardized bins for keeping shelves tidy, color-coding pallets, analyzing
material usage patterns, and more can make product picking as seamless and
error-free as possible that will improve warehouse efficiency.

‍
Follow Lean Warehousing
While stock-piling something that is in huge demand can be profitable in the short
run, customer needs and preferences keep on changing. Warehouses should
practice the idea of "lean" inventory to prevent stocks from expiring or going to
waste to improve warehouse efficiency.

Lean inventory suggests warehouses use only what they require and nothing
more. Adopting this method prevents warehouses from ordering more inventory
than needed and helps improve warehouse efficiency and eliminate waste as
small quantities are dispatched from the supplier at frequent intervals rather than
sending multiple shipments once.

Through lean principles, warehouse operators focus on continuous process

improvement to improve workflow efficiency, prevent stock-piling, better utilize
storage space and streamline processes to help customers get products faster.

As a result, customers should opt for software that can leverage AI to help them
with inventory optimization by dynamically maintaining safety stock levels,
reordering thresholds, and demand forecasts that improve warehouse efficiency.

Improve Labor Productivity

Although technology is used extensively in the modern warehouse, labor still
makes up for the largest share of warehouse operating costs. Improving labor
productivity is fundamental to improving the workflow efficiency of a warehouse.

A robust warehouse operating system makes labor management easier for

warehouse operators. They can set up training routines for new joiners or create
a cross-training plan for workers to learn different tasks beyond their domains.

Not only does this improve the competency of workers, but it can come in handy
when a specialized worker cannot come to work.

Encouraging workers to share what they think can reduce costs in a warehouse
and work on their pain points can also prove constructive, as they are responsible
for most warehouse processes.
 Design a Standardized Workflow
Without a standard automated workflow in place, employees end up working at
their own pace and comfort. Different working habits can create gaps in
warehouse processes, making it difficult to measure individual performance
against set benchmarks.

Establishing a standardized workflow ensures that every employee works within

the same guidelines and that there is transparency about package movement,
order fulfillment, and other processes.

Following a streamlined and well-defined process helps identify issues and

bottlenecks hampering the warehouse's efficient automated workflow.

Conclusion
Implementing the best approaches to ensure smooth and efficient warehouse
operations is fundamental to cutting down on costs, enhancing the productivity of
the warehouse, and increasing ROI.

Leveraging smart warehouse execution and warehouse optimization software

can help improve the efficiency of automated workflows and get the most out of
your warehouse.

Interested in learning more about how to improve the workflow efficiency of your
warehouse?

Explore Hopstack's AI-powered warehouse execution software that easily

integrates with your existing hardware infrastructure, ERP, and WMS systems to
automate and optimize various operations inside the warehouse facility.

Warehouse workflows are sequences of tasks and processes that are designed to
efficiently manage the movement, storage, and processing of goods within a
warehouse. The effectiveness of these workflows directly impacts operational
efficiency, accuracy, and customer satisfaction. Here are key components of typical
warehouse workflows:

1. Receiving:
  Goods are received from suppliers, and the first step involves checking the
incoming shipments for accuracy and quality. Items are then assigned to
designated storage locations.
2. Putaway:
 After receiving, items are put away in their assigned locations within the
warehouse. Efficient putaway workflows help optimize storage space and
facilitate easy retrieval during picking.
3. Inventory Management:
 Regular inventory checks, cycle counting, and adjustments are part of ongoing
workflows to ensure accurate stock levels. This helps prevent stockouts or
overstock situations.
4. Order Picking:
 The process of selecting items from their storage locations to fulfill customer
orders. Different picking methods include single order picking, batch picking,
and zone picking.
5. Packing:
 After picking, items are packed into boxes or containers for shipment. Packing
workflows may involve quality checks, labeling, and documentation.
6. Shipping:
 The final step involves preparing shipments for dispatch. This includes
generating shipping labels, coordinating with carriers, and ensuring timely
delivery.
7. Returns Processing:
 In the case of product returns, a workflow is in place to receive returned items,
inspect their condition, update inventory, and restock or dispose of the items
accordingly.
8. Cross-Docking:
 Cross-docking workflows involve directly transferring received goods to
outbound shipping areas without storage. This is particularly useful for fast-
moving items with high demand.
9. Kitting and Assembly:
 Workflows for assembling or kitting products involve picking and combining
individual components to create finished goods. This is common in industries
with configurable or customizable products.
10. Quality Control:
 Certain workflows may include quality control checks at different stages,
ensuring that only products meeting quality standards are shipped to
customers.
11. Task Assignment:
 Workflows for task assignment ensure that the right tasks are assigned to the
appropriate personnel or automated systems based on factors such as skill
level, location, and workload.
12. Workflow Optimization:
 Continuous improvement workflows focus on analyzing data, identifying
bottlenecks, and optimizing existing processes for increased efficiency and
cost savings.
13. Reporting and Analytics:
 Regular reporting on key performance indicators (KPIs) and analytics provide
insights into warehouse performance, helping in decision-making and
strategic planning.
14. Integration with Other Systems:
 Integration workflows link the warehouse processes with other business
systems such as Enterprise Resource Planning (ERP) and Transportation
Management Systems (TMS) for seamless end-to-end operations.

Effective warehouse workflows are essential for maintaining accuracy, reducing lead
times, and meeting customer expectations. They are often supported by Warehouse
Management Systems (WMS) and other technologies to enhance automation and
visibility throughout the supply chain.

Advanced warehouse workflows in a Warehouse Management System (WMS) are

designed to optimize and orchestrate various operations within a warehouse,
ensuring efficient and seamless processes. Here are key components of advanced
warehouse workflows:

1. Task Automation:
 Automation of routine tasks such as order processing, inventory updates, and
replenishment helps in reducing manual effort and streamlining operations.
Advanced WMS can automatically trigger tasks based on predefined rules and
events.
2. Dynamic Task Assignment:
 The system dynamically assigns tasks to available resources based on factors
like location, skill level, and workload. This ensures that tasks are distributed
optimally to improve efficiency.
3. Cross-Docking Workflows:
 Advanced WMS supports cross-docking workflows, enabling the direct
transfer of goods from inbound to outbound without the need for storage.
This reduces handling and storage costs, speeding up order fulfillment.
4. Returns Processing Workflows:
 Workflow configurations for handling product returns involve efficient
processes for inspection, restocking, and updating inventory levels. This
ensures that returned items are reintegrated into inventory effectively.
5. Kitting and Assembly Workflows:
  For warehouses involved in product assembly or kitting, advanced workflows
facilitate the efficient picking, packing, and assembly of components into
finished goods. This can involve dynamic bill of materials (BOM) management.
6. Dynamic Slotting Workflows:
 Workflows for dynamic slotting involve continuously optimizing the
placement of products within the warehouse based on factors like demand,
seasonality, and product characteristics. This ensures that frequently picked
items are located optimally.
7. Cross-Functional Workflows:
 Integration with other business systems such as Enterprise Resource Planning
(ERP) and Transportation Management Systems (TMS) allows for cross-
functional workflows that span multiple departments and processes.
8. Real-Time Visibility and Reporting:
 Advanced WMS provides real-time visibility into warehouse operations
through comprehensive reporting and analytics. This enables quick decision-
making and continuous improvement of workflows.
9. Exception Handling Workflows:
 Workflows are designed to handle exceptions or deviations from the standard
processes. Alerts and notifications are configured to address issues such as
stockouts, discrepancies, or delays in real-time.
10. Wave Processing Workflows:
 Wave processing workflows orchestrate the grouping and processing of
multiple orders together to maximize efficiency. This involves defining rules
for order prioritization, picking sequences, and shipping requirements.
11. Task Sequencing and Prioritization:
 The system intelligently sequences and prioritizes tasks based on factors like
order deadlines, delivery commitments, and product characteristics. This
ensures that urgent tasks are handled promptly.
12. Integration with IoT and RFID:
 Integration with Internet of Things (IoT) devices and Radio-Frequency
Identification (RFID) technology enhances visibility and enables more accurate
tracking of items throughout the warehouse.

These advanced warehouse workflows contribute to a more responsive, adaptable,

and efficient warehouse environment, addressing the complexities of modern supply
chain management. They help organizations meet customer expectations, reduce
costs, and enhance overall operational agility.
•
• Picking and packing

Frequently asked questions

What is warehouse picking?
 Warehouse picking is a process that involves locating and gathering items from a
warehouse. This can be done manually or with the help of automated systems.
What is a picking list?
A picking list is the piece of information that is sent to warehouse pickers after a customer
has made an order. It will include a list of products and items which need to be picked, the
location of these products, the picking route and the shipping data.
What is warehouse packing?
Warehouse packing is the process of packing the items of an order after they have been
picked. Warehouse packers need to select the correct packaging, weigh the materials and
ensure the package is labelled with the correct shipping label.
How can you improve picking and packing?
Ultimately, to improve the picking and packing process, you should:

 Plan optimal picking routes to reduce travelling time

 Use automation and technology to reduce mispicks
 Store inventory strategically so that popular items are placed near the packing station
 Implement a WMS to ensure all processes are working together efficiently

What are the three main picking systems?

The three main picking systems include batch picking, zone picking and wave picking.
Depending on their requirements, warehouses may use a combination of one or more of
these systems.

Warehouse Picking and Packing

Fulfilment Process: The Ultimate
Guide
Table of Contents

 Pick and Pack Tips for Next-Level Warehouse Management

 What is Warehouse Picking and Packing?
o The Warehouse Picking Process
o The Warehouse Packing Process
 The Importance of Picking and Packing in a Warehouse
o Exceeding customers’ expectations
o Boosting Efficiency
o Improving Cost Effectiveness
 Picking and Packing Methods
o Piece Picking
o Batch Picking
o Zone Picking
o Wave Picking
 Warehouse Picking and Packing Challenges
o Inaccurate Inventory
 Warehouse Pick and Pack Best Practices and Optimisation
o Utilising Mobile Technology To Improve Inventory Accuracy
o Design Your Warehouse for Optimal Efficiency
o Adopting Business Intelligence to Utilise Data
 How RollPallet UK Can Assist in Your Picking and Packing Efforts

Pick and Pack Tips for Next-Level

Warehouse Management
In years gone by, warehouse picking and packing
focused on maximising efficiency and minimising errors,
often through the manual labour of a skilled supply
chain crew.

Today? Warehousing is an entirely different ballgame.

With globalisation and increased competition, the focus

has shifted to fulfilling customer expectations of fast
delivery and accuracy which, in turn, calls for using
technological adjustments such as automation,
robotics, and artificial intelligence.

In other words, the process of warehouse picking and

packing needs to be optimised in order to keep up with
the rising cost that comes with the process while at the
same time fulfilling the process in the least amount of
time possible.

In this guide, we’ll take you through effective tips and

strategies that can help you optimise warehouse
picking and processing at every stage. It ultimately
aims to assist everyone within your organisation from
warehouse operative through to logistics and
procurement managers, covering some of the basics
right through the the more technical elements of
warehouse operations.

Ready to learn how to optimise your pick and pack

operations and improve operational efficiency
throughout your organisation? Let’s get started!
What is Warehouse Picking and
Packing?
Picking and packing is the process of selecting
customers’ orders as indicated in the inventory and the
orders placed and preparing them for shipping from a
warehouse.

This process is at the epicentre of customer

satisfaction, selling goods, and making profits. That’s
why, if you own a warehouse, you need to keep an extra
eye on the process to ensure errors have been
minimised and efficiency maximised.

And this guide gives you a leg up on the whole exercise.

Let’s look at the process in more detail.

The process of picking and packing in the warehouse

cannot be completed without mentioning when the
warehouse receives the order. This is the first and
perhaps most important part of the whole process – it
involves receiving the order information, which is in
turn transferred to the team responsible for picking and
packing the ordered goods.
The second stage is picking, in which you find and
retrieve the right quantities of each product (in the
customer order) from its location in the warehouse
using a picking list and preparing it for packing. There
is a need to put emphasis on this process and back it up
with quality and counter-checking to ensure the goods
picked are of the right volume as ordered. Products
like merchandise trolleys make the picking process
more effective and efficient.

The third process involves packing, which involves

placing items into the package with the right shipping
containers/materials along with the documentation and
appropriate packing materials before the package is
labelled and shipped to the customer.

Key hardware such as our very own plastic pallet

collars can play a key role at this stage of packaging.
They are ideal for making sure products and materials
are secure when in transit, virtually eliminating the
potential for product damage/crushing.

The last process involves dispatching or shipping the

said goods from the warehouse to the customer.
 The Warehouse Picking Process
A dedicated team is usually on hand to oversee
warehouse operations in most UK warehouse
environments. Naturally, the size and scope of each
team will vary by industry, scale and complexity, but
the general picking process can be summarised as
follows:

 The orders come in through the warehouse Order Management System

 The customer orders (pick tickets) are then prioritised based on the client
type and delivery date.
 The pick tickets are reviewed for any special requirements that need
extra attention.
 The pick tickets are then passed to the picking team
 A warehouse picker will use one of the merchandising trolleys to pick
items around the warehouse
 The picked items are scanned and moved to the packing process

The Warehouse Packing Process

This process may include various steps conducted by
different warehouse operatives in a diverse range of
roles, but in most cases, packing includes the following:

 Packing order in the correct packaging (depending on the type of product)

 Scanning and removing it from the inventory log
 Placing the order in a shipping container and attaching a shipping label
 Sorting the order (based on the delivery vehicle or shipping location)
 Taking the packaged products to the loading area for pick-up/shipping
 Shipping carriers pick up their pallets at the shipping or packing dispatch
dock.

The Importance of Picking and

Packing in a Warehouse
Let’s take a look at some of the main benefits of
incorporating pick and pack warehouse duties into the
order fulfilment process.
Exceeding customers’ expectations
One of the major benefits of the right pick and pack
strategy is improved customer service and satisfaction
levels.

Logistics firms can easily control the movement of

inventory and expedite order fulfilment to ensure
speedy delivery of customers’ orders.

The right pick and pack strategy ensures on-time

shipments, and this can be used to build a loyal
customer base.

Boosting Efficiency
The right pick and pack approach is efficient and saves
time for supply chain managers. It speeds up order
fulfilment and critical inventory management activities ,
enabling goods to be inventoried, stored, picked, and
packed in one location.

Since all order fulfilment activities are performed under

one roof, this shortens the tedious process in which
products are assembled from various storage facilities
and sent to another location for packing and labelling.

Improving Cost Effectiveness

Pick and pack is cost-effective when properly
optimised. Through reduced average order processing
time, the process maximises asset utilisation and
minimises operational and/or shipping costs and
delivery times.

A warehouse management system can help streamline

the process by collating and managing operational and
inventory data as well as packaging information.
A fulfilment management system helps simplify some of
the advanced methods at play here and enables your
team to efficiently manage the storage and fulfilment of
orders.

This brings us to the next section, picking and packing

methods. Remember, the benefits we’ve discussed
above are informed by the following process.

Picking and Packing Methods

The picking and packing methods depend on the size of
the business and the products in question; you may
change the methods as your business grows. Let’s take
a look at some of the methods used by large
eCommerce and logistics companies.

Piece Picking
Piece picking entails packing a slip for a single order. In
other words, it involves picking, packing, and shipping
an ordered item one at a time. This method is time-
consuming and, hence, not applicable to large
businesses.

Batch Picking
Batch picking is applicable when there are multiple
orders that need to be put together in a batch. Each
batch of orders is for items that are in the same area of
the warehouse. This method makes the picking process
more effective and efficient since the clumsy business
of walking back and forth to the warehouse is
minimised.

Pick and pack software can help you batch orders for
efficient picking. Batch Picking is ideal for businesses
starting to experience high volumes of orders.

Zone Picking
Zone picking is a good technique for larger fulfilment
warehouses. Each Picker is assigned a particular zone
of order picking in the warehouse. Upon completing
picking up the ordered item from the first zone, the
packing slip is passed through all the pickers’ zones
and eventually taken to the packing station.

Zone picking requires complex coordination in the

fulfilment process. A SaaS-based warehouse
management logistics software can be incorporated to
help manage the zone picking process.

Wave Picking
Wave picking is a combination of batch and zone
picking. Workers pick items within a zone for a batch of
orders rather than a single order. Then they pass the
batch to the next zone for picking.
 No matter your picking and packing method, it has been
reported that some logistics companies continue to
face challenges in the whole process. Let’s take a look
at some of them in the next section.

Warehouse Picking and Packing

Challenges
Here are some common challenges that make the pick
and pack process inefficient and costly:

 Inaccurate Inventory
An inaccurate inventory record can lead to incorrect
scheduling and a longer lead time. If the stock records
are not updated, or inventory data is entered
incorrectly, it can lead to confusion regarding the
amount of stock available in the order fulfilment
process.

If an ordered item is out of stock and takes longer to

ship, it lowers customer satisfaction, encourages
buyers to look at competitors’ products, and negatively
affects a brand’s reputation.

 Various Factors that Increase Turn-Around Time

The turn-around time (TAT) for the pick and pack

process refers to the time taken to pick, consolidate,
and pack the ordered items.

TAT can increase due to reasons such as incorrect

product placement, inefficient picking methods,
unorganised warehouses, etc. An increased TAT can
result in a lower pick and pack throughput rate, i.e., the
number of units picked and packed per standard
working hour. This delays order fulfilment and
ultimately leads to reduced customer satisfaction.
 Missing on Incomplete Product Information

Lack of accurate, detailed product information can lead

to an inefficient pick and pack process, as data is
essential for performing this process effectively. Some
of the crucial data that you should track include:

 Total number of stock units by product category

 Items sold together frequently
 The average number of lines per order & units per order
 Product groups, such as hazardous, temperature, and high-value groups
 Dimensions and weight of a product, among others

For the picking process:

Misinformation on details such as the average number

of lines per order and items sold together can lead to
the selection of an inefficient picking method. This, in
turn, can lead to an increased pick and pack lead time
and inefficiency in order fulfilment.

For the packing process:

Missing details such as the fragility and weight of a

product can lead to insecure packaging. Customers end
up receiving a damaged product, reducing customer
satisfaction.

Of course, challenges are inevitable in any industrial

process – but you don’t have to face the same ones just
because everyone else in the industry is facing them.
Let’s take a look at some of the best practices you can
follow to overcome them and do more business than
your competitors.

Warehouse Pick and Pack Best

Practices and Optimisation
To improve and optimise your warehouse picking and
packing process, consider the following best practices.

Utilising Mobile Technology To Improve

Inventory Accuracy
Warehouse inventory can be maintained accurately by
utilising mobile technologies such as barcodes and RFID
scanners. Manual data entry is prone to human error, so
scanning barcodes or RFID tags gives you an almost
error-free way of entering data into the system.

Setting up a wireless network properly as well as

mobile scanners allows the stock count to be updated
in real-time as soon as cargo is scanned and picked.
This allows the warehouse to always have an up-to-date
count of inventory so that the scheduling of orders is as
accurate as possible. This also allows warehouse
managers to have real-time visibility, which can help
them make effective business decisions.

Design Your Warehouse for Optimal

Efficiency
An optimal warehouse design helps reduce the lead
time of the pick and pack process, improves efficiency,
and decreases operational costs.
 Therefore, the most efficient way to optimise picking
and packing is to design your warehouse for maximum
efficiency. You can do it by:

 Placing top-selling products closer to your packing stations.

 Keep a stock of items typically sold together in neighbouring storage
zones.
 Organise your inventory from top-selling to low-selling.

After performing this exercise, items can be located

easily, picked, and packed, leading to a more optimised
turn-around time.

Adopting Business Intelligence to Utilise

Data
To improve the efficiency of warehouse processes such
as pick and pack, warehouses should always track their
data.

This can be achieved by adopting Business Intelligence,

as this technology collects, analyses, and presents
product data in an easy-to-understand manner.
Warehouse managers can then utilise this data to make
informed business decisions and optimise the pick and
pack process.

How RollPallet UK Can Assist in Your Picking

and Packing Efforts

Optimising the pick and pack process can help

warehouse managers streamline operations, achieve a
higher perfect order rate, and improve customer
satisfaction.

It’s time to consider going for automation, robots, and

artificial intelligence to make sure you’ve streamlined
your warehouse pick and pack processes and other
overall procedures and tools that can increase
productivity.

With cutting edge technology at our disposal to produce

the tools that’ll help you get the job done with ease and
efficiency, we’re on hand to help your team save both
time and money. Some of these tools
include trolleys , roll cage containers , and stillages –
core staples of our offering here at RollPallet UK.

Now that you understand why and how to fulfill your

pick and pack process, it’s time to get to the next level
– contact our sales team today and we’ll gladly assist
you and provide your business with the expert advice
you need to make the right decision for your specific
warehouse, supply chain and inventory management
requirements.

• Wave processing

What Is Wave Picking? How It

Works, Methods & Tips
Abby Jenkins | Product Marketing Manager
June 15, 2021

Once a commercial airliner lands and taxis to the gate, the pressure is on
to get it ready for the next flight. Teams of specialists — cleaning crews,
baggage handlers, fueling agents and more — work in concert to meet the
next scheduled departure time. What does that have to do with warehouse
wave picking? Both are built on a principle known as short interval
scheduling (SIS), intended to maximize productivity and minimize inactivity
by bundling tasks into a short window of time. True, 737s are not
warehouses, and there are some fundamental considerations when
determining whether wave picking is right for your warehouse.
 What Is Wave Picking (or Cluster
Picking)?
Wave picking, also known as cluster picking, is one of several order picking
systems used in warehouses to improve efficiency. It involves releasing
specific orders to the floor for fulfillment, based on a common factor such
as shipping date, like items, warehouse zone, etc. Rather than scheduling
a number of pickers per shift and then hoping that orders flow accordingly,
wave picking helps teams to meet specific commitments, such as filling a
set number of orders per shift or meeting a shipping deadline.

To do so, wave picking focuses on when orders are picked. Management

aligns short picking intervals, or waves, that correspond with other
warehouse variables, such as the transportation plan or departure
schedule. The result is that orders are grouped and then picked, but only at
certain times of day. Teams gain efficiency primarily by reducing (or
eliminating) picker idle time. In other words, a wave might not be scheduled
until all orders up to a certain deadline have come in, so pickers don’t have
to spend time waiting for instruction.

Wave Picking vs. Zone Picking

Wave picking contrasts with another popular picking methodology, zone
picking, which is defined by where the items are picked. But the two
approaches are not mutually exclusive — some warehouses use both
together. Depending on the size of the warehouse and its product mix,
zones may be set up in various ways. The choices include organizing by:

 Product type (non-perishables in one zone and fresh produce in another)

 Risk factors (controlled narcotics in a secure zone)
 Packing considerations (hazardous materials in one zone)
 Sales volume (fastest sellers in one zone or zones and slowest sellers in
another)
However zones are configured, pickers are assigned to one zone and only
pick SKUs from that zone. This reduces worker travel time and congestion.

Key Takeaways
 Wave picking can improve order picking efficiency by scheduling waves
according to shipping schedule, carrier and other factors.
 Wave picking doesn’t describe a single, defined process. There are several
variations of wave picking, and it is often combined with other picking
methodologies.
 Advantages include timely shipping, fewer bottlenecks and less travel time,
but it can be hard to process urgent or last-minute orders.
 Effective wave picking relies on complex data analysis that is best done by
a warehouse management system (WMS).

Wave Picking Explained

Establishing wave picking as a methodology helps keep workers moving at
an efficient pace, ensuring that there’s a set plan. Staff collect multiple
orders in specific inventory zones based on their item grouping during
specific times of the day. Each wave lasts from one to four hours, breaking
up shifts into manageable pieces. Shorter waves can help managers
identify scheduling issues in the same day, meaning waves can be
adjusted as the day goes on, if needed. This agility is a hallmark of SIS.

Without a defined methodology, order picking can become a highly

inefficient process with a lot of down time. Pickers commonly spend time
waiting for clear instructions, and warehouse traffic and poor planning can
waste time as well. For example, a picker might need to wait for another
picker who is blocking product locations with a forklift. Wave picking aims to
cut idle time by focusing pickers on specific orders within a finite timeframe
— a form of short interval scheduling.

Wave duration is usually determined by how many orders are being picked.

How Does Wave Picking Work?

Although the concept is straightforward, executing wave picking can be
complicated because it requires a collaborative effort between multiple
roles involved in the order fulfillment process, including receiving, shipping,
freight companies and others. Because of this, wave picking is most
effective when seen as a three-step process:
 Pre-wave picking is the work of scheduling the waves according to specific
variables. As a business processes orders, they must be logically grouped
and scheduled. If they’re grouped by shipping time, for example, picking
must have enough lead time to pick the orders and get them packed before
the shipping partner’s scheduled departure time. This planning is much
easier with the help of a warehouse management system (WMS) that can
factor in all necessary variables to create an optimal picking schedule;
done manually, it’s laborious and time-consuming.
 Performing wave picking is the act of picking. It’s made more efficient with
technology like hand-held mobile scanners that provide digital pick lists and
direct pickers to product locations, instead of paper pick slips. These
technologies can be linked to a WMS and chart optimal pick routes while
tracking each step of the picking process. Using a hand-held picking
device, wave picking typically works like this:
1. A picker receives the pick list for 4-12 orders per wave.
2. The picker uses a multi-tote cart to keep the orders separate.
3. Pickers are sent to each storage location in sequence, and the
mobile device tells the picker the SKU and quantity to pick. Pickers
pull the designated product and scan its barcode to confirm the pick.
4. Pickers place the product in its appropriate tote and scan the tote’s
barcode to confirm. Pickers might also enter the quantity on the
mobile device.
5. Pickers are then directed to the next pick and the process repeats
until all orders are complete.
 Post-wave picking occurs after the items are picked. Often, orders are kept
separate as they’re picked; mobile scanners and discrete totes or cartons
can make this easy. But if orders are not separated, the product must be
organized for sorting and packed for shipping afterward. Scheduling waves
must allow time for the added sorting and packing step if necessary.
Finally, orders are loaded and shipped.
 How Are Waves Grouped?
How a company groups waves will depend on a variety of factors and can
change from business to business or even from one day to another. This
agility is a primary benefit of wave picking. Here are some ways waves
might be grouped:

 Like products. The most common way to wave pick is by selecting items
that are of like kind, typically grouped in a shared space in the warehouse.
 Shipping schedules. Many warehouses ship products using different delivery
schedules, such as ground shipping, express delivery or next-day delivery
— all of which may have different pickup times. Grouping waves based on
shipping schedule can ensure orders are ready on time so carriers can stay
on schedule and customers can receive orders on time.
 Carriers. Different carriers have different pickup times, pricing and shipping
guidelines. Warehouses that rely on multiple carriers may find that grouping
all orders for a specific carrier saves time and money.
 Replenishment picking. In a large or high-volume warehouse, it can make
sense to free up valuable floor space by storing quantities of fast-selling
SKUs off the floor or even off-site. When that’s done, those SKUs must be
replenished — typically in their own wave — before other waves are
scheduled. To prevent worker downtime, it’s useful to schedule picking
waves after all SKUs have been replenished.
 Shift changes and available workforce. Waves can be grouped to take full
advantage of peak staffing, or to ensure that picking is complete before it’s
disrupted by a shift change. Businesses should avoid shift changes in the
 middle of a picking cycle. If workers are interrupted and replacement staff
must pick up where the previous shift left off, it can increase errors.
 Product locations and similarities. Business can plan waves to pick all
products in the same location, which can be particularly useful when
combined with zone picking. For example, waves may be planned around
similar products, such as bulky and heavy items or hazardous materials.
 Warehouse priorities. Warehouse priorities vary depending on business
needs, which change from time to time. For example, a warehouse might
prioritize orders from the largest customer, or orders that have a lot of
perishable products. Waves can be scheduled to tackle orders with utmost
priority.

Note that none of the above options need to be all or nothing. They can be
combined — maybe the wave considers priority orders and shift changes.
And grouping variables can change day to day or can shift as the day
progresses. No matter what, it’s important to always consider the most
logical way to group waves at any given time.

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Wave Picking Methods

As with other picking methodologies, there are variations: fixed wave
picking and dynamic wave picking.

 In fixed wave picking, all orders are held for packing until workers have
picked all the items to fulfill all individual orders in the wave.
 In dynamic wave picking, individual orders are sent to be packed as they
are completed.
Key Differences
There are pros and cons to both approaches. Fixed wave picking makes it
easier to schedule packing and shipping staff because it’s generally easier
 to anticipate when the wave will be complete. However, more staff may be
required because all orders will then need to be assembled for picking.

Dynamic wave picking eliminates the added final step because orders are
sent to packing and shipping as soon as they’re completed. This means the
packing team may get by with fewer people. However, order flow may be
less predictable, creating a potential for bottlenecks in the packing process.

Advantages of Wave Picking

Wave picking has become a popular methodology because it offers several
advantages over traditional single order picking. Consider these plusses:

 On-time shipping: By analyzing orders, resources and shipping schedules,

wave picking makes it possible to build in the necessary lead time to pick
and complete orders before shipping cut-off times.
 Fewer bottlenecks: In single order picking, there is always the risk that too
many people, too much equipment or both will end up in the same aisle at
the same time. Wave picking can direct those same people and/or the
same equipment to the aisle at different times, resulting in less congestion
and greater productivity.
 Faster picking: Integrating multiple variables when planning a wave makes
it possible to have pickers pull higher quantities of the same SKU or to pick
several SKUs in the same location. It’s also possible to plan the most
efficient route through the warehouse. Both steps slash pickers’ travel time,
which makes it possible to pick more in less time.
 Increased accuracy: Once orders are picked and go to sorting, the sorting
and packing team can double-check SKU count and ensure all orders are
accurately fulfilled.
 Improved tracking: A set schedule makes it easier to estimate picker
progress throughout a wave, especially when handheld scanning devices
are linked to a WMS. This provides managers a real-time overview of how
much progress has been made and what tasks remain.
 Good for high-value items or fresh goods: With wave picking, these items
can be picked just-in-time right before shipment. This translates to less idle
time, meaning less chance for high value items to be broken or stolen, and
less time for perishable items to lose freshness.
 Disadvantages of Wave Picking
Despite the advantages of wave picking, no order picking method is
perfect. Here are some potential downsides to wave picking:

 Possible downtime: Although eliminating downtime is a primary goal of wave

picking, downtime can still occur if waves aren’t well-planned or if labor and
resources are unequally deployed. For example, pickers may be slowed if
they have more to pick than the pickers behind them, who may be forced to
wait for the bottleneck to subside.
 Urgent orders may be delayed: Wave picking relies on strict schedules, so it
can be hard to account for emergency orders or high priority orders that
come in at the last minute when a wave has already begun. If customer
satisfaction is the No. 1 priority, the only way to process these new orders
is to disrupt the current workflow. Neither disrupting the wave nor delaying
the urgent order is an appealing option, but it is a choice management must
prepare to make.
 Can add an extra step: When orders aren’t picked directly into a shipping
carton, they must be sent to sorting and packing to be correctly separated
and prepared for shipping. This adds an extra step to the order fulfillment
process, potentially adding more time and more room for error.
 Multiple pickers can cause confusion: Because wave picking may require
more employees, that can create more traffic and confusion in the
warehouse without an effective WMS.

Five Tips to Optimize a Wave Picking

Strategy
Much of the value of a wave picking strategy lies in how well each wave is
planned and executed. Here are some tips that can help optimize the wave
picking process:

1. Choose an effective WMS. There are so many variables in wave

picking — type of product, product location, staffing, warehouse flow,
shipping considerations and so on — that humans cannot quickly and
effectively distill them all to devise a plan, especially on the fly. Wave
 picking demands a strong WMS that can handle complex data
analysis to derive the most efficient way to batch waves and pick
orders.
2. Determine delivery commitment. Setting expectations for when
customers will receive their orders is a key business practice.
Whether orders are sent out for same-day delivery, next-day delivery
or standard ground, the wave-picking strategy must determine how
those orders can be picked and processed in time to meet shipping
deadlines.
3. Consider delivery zones. If a substantial proportion of orders are all
going to the same area (such as office supplies going to midtown
Manhattan), it may pay to plan waves around those orders to
maximize shipping efficiency.
4. Consider cart handling strategies. What equipment do pickers need to
be the most efficient? Small items can be grabbed by hand and
transported within a tote on a cart, whereas large, heavy items may
require forklifts or similar equipment. And if a forklift is required, staff
must be trained to use it.
5. Determine the optimal picking strategy. Reviewing all the above
factors can help devise optimal waves that include the most logical
picking strategy. For example, if a large, urgent order with heavy
items must be picked, schedule the wave such that someone with a
forklift license is available. It’s also important to remember that wave
picking is not ideal in all situations, and warehouse operations must
be flexible. If the warehouse is experiencing a light season, it may not
be necessary to create concise coordinated schedules and single
order picking or batch picking may work just fine. A WMS can help
managers pick the most efficient picking strategy.

How Does a Warehouse Management

System (WMS) Help?
Planning an effective wave picking strategy requires keen data analysis
that accounts for numerous variables, making a warehouse management
system invaluable. For example, a WMS can plan waves based on different
factors like:
 Delivery times. Waves may be planned based on when a product is
promised to the customer. Products planned for ground delivery to the
other side of the country would be picked at a different time than products
marked for same-day delivery, for example.
 Delivery address. Waves may be planned to pull products with the same or
similar destination, such as the same zip code. Scheduling waves based on
delivery address increases shipping efficiencies that save carriers time and
fueling costs.
 Shipment number. A shipment number is used to help identify a shipment,
for example with a bill of lading. One shipment might include 10 crates of
products, and each crate may be labeled with a distinct shipping number. A
WMS can easily plan waves based on orders that must be lumped
together.
 Shipment number, shipment start loading time and shipment end loading
time. Shipment numbers may also be used in a more sophisticated
structure that incorporates the cut-off time for either when the shipment
must start loading or when the loading must be complete. The WMS can
then schedule backward by grouping orders that have the same (or similar)
cut-off times.

When calculating any of these approaches, the WMS will consider delivery
and transportation schedules, labor schedules, the location of each product
and other variables. To do so more effectively, a WMS can connect to
an enterprise resource planning (ERP) system, which can compile data
from all of a business’s key functions in real time, such as order
management from incoming orders to shipping management to customer
service.

Many warehouses stand to benefit from wave picking thanks to its concise,
clear way of scheduling short picking intervals that correspond with other
key warehouse fulfillment processes, like shipping. To get the most out of
the wave picking strategy, it’s important to have a WMS that can
automatically analyze order data, shipping data, staffing data and
warehouse organization to devise the most logical waves and picking
sequences.

Award Winning
 Wave Picking FAQs
What is wave picking in a warehouse?
Wave picking is a commonly used order picking system. Picking is
scheduled to occur within specific intervals of time, or waves, to better
correspond with other important warehouse processes, such as shipping.
For example, a warehouse might schedule a wave that focuses on getting
a high-priority order from its largest customer out the door in time to meet
the carrier’s deadline for next-day shipping.

What is the wave picking process?

The wave picking process can be broken down into three steps:

1. Pre-wave picking, in which waves are established and scheduled.

2. Performing wave picking, in which items are picked to fulfill customer
orders.
3. Post-wave picking, in which items are sorted and packed for
shipping.
What is one drawback of wave picking?
One drawback of wave picking is that it does not leave room for last-minute
urgent orders or emergency order changes. Wave picking relies on
following strict schedules to meet certain demands or goals. When
emergency, last-minute orders crop up, warehouse managers must decide
between interrupting the scheduled wave or delaying the urgent order.

If you're referring to "wave processing" in the context of a warehouse, it might be

related to a technology or methodology used in warehouse management systems
(WMS). Here are a few possibilities:

1. Wave Picking:
 Wave processing in a warehouse often refers to wave picking. This is a method
where a series of orders are grouped together into waves, and the items are
picked in batches. This approach is more efficient than picking individual
orders one at a time, as it reduces travel time within the warehouse.
2. Wave Planning:
 Warehouse wave processing also involves wave planning, where the system
optimizes the order fulfillment process by grouping similar tasks together.
This includes organizing picking, packing, and shipping processes to improve
efficiency and reduce operational costs.
3. Wave Fulfillment:
  In e-commerce and order fulfillment, "wave processing" can relate to the
fulfillment waves. Orders are processed in batches, with each wave containing
a specific set of orders. This helps streamline the picking and packing
processes, allowing for more efficient order fulfillment.
4. Wave Management Software:
 Warehouse management systems often include features for wave processing.
These systems help automate and optimize the workflow by intelligently
grouping and managing tasks in waves.

In summary, in the context of a warehouse, "wave processing" usually involves the

optimization of order fulfillment processes, including picking, packing, and shipping,
by grouping similar tasks together for more efficient operations. This is often
facilitated by warehouse management systems and software.
•
• Inventory counting
Inventory counting in a warehouse is a crucial process to ensure accurate tracking of
stock levels. Several methods and technologies are commonly used for warehouse
inventory counting:

1. Periodic Physical Counts:

 Traditional method where physical counts of items in the warehouse are
conducted at regular intervals, often annually or quarterly. This can be a time-
consuming process but is essential for accuracy.
2. Cycle Counting:
 Instead of counting the entire inventory at once, cycle counting involves
dividing the inventory into smaller sections and counting a portion of it at
scheduled intervals. This allows for more frequent checks and helps identify
discrepancies sooner.
3. Barcode Scanning:
 Utilizing barcode technology, where each item is assigned a unique barcode.
Warehouse staff can use handheld barcode scanners to quickly and accurately
scan items during the counting process.
4. RFID Technology:
 Radio-frequency identification (RFID) tags can be attached to items, and RFID
readers can be used for quick and accurate inventory counting. RFID
technology allows for simultaneous scanning of multiple items.
5. Automated Systems:
 Some warehouses employ automated systems, such as conveyor belt systems
with integrated scanning technology, to streamline the inventory counting
process. Automated systems can improve efficiency and reduce human error.
6. Inventory Management Software:
 Warehouse management systems (WMS) and inventory management software
often include features for inventory counting. These systems can provide real-
 time visibility into stock levels, automate tracking, and generate reports on
inventory accuracy.
7. Drones and Robotics:
 In some advanced warehouse setups, drones or robotic systems equipped
with cameras and sensors can be used for inventory counting. These
technologies can navigate through the warehouse and capture real-time data.
8. Data Analytics:
 Analyzing historical data and using predictive analytics can help identify
patterns and discrepancies in inventory. This can be useful for planning and
optimizing future inventory counting processes.

The choice of method depends on the size of the warehouse, the nature of the
products, and the desired frequency of counting. Combining different technologies
and methods can often provide a comprehensive and accurate approach to
warehouse inventory counting.

What Is Warehouse Inventory

Counting?
Let's start by first answering the question: What is warehouse inventory counting?

Inventory counting is a process for validating and reconciling the amount of inventory
that you have in your warehouse at any given time. Having the correct inventory
count is critical to customer satisfaction in addition to all the financial implications of
holding too much inventory or not turning inventory fast enough. Those are three
KPI's that I am sure you are familiar with.

There are two generally accepted methods for inventory counting:

 Physical inventory count - a systematic, physical inventory counting process

 Cycle count - a sampled inventory process that uses statistical methods to predict
actual inventory levels

Both of these methods have pros and cons that enable a warehouse manager to
determine which method is the best fit for a given facility at a given point in time. A
physical inventory process requires that you shut down the warehouse and
physically go through and systematically count all of the items stored in the
warehouse. Physical inventory counts might be needed at least once a year, for tax
and end-of-year accounting purposes. Alternatively, a cycle count method enables
you to count a smaller subset of items within the warehouse without needing to shut
down the warehouse and count everything. Cycle counting uses statistical methods
to determine the overall inventory accuracy through the sampling of a smaller set of
items.

PROS and CONS For Inventory Counting Methods

Cycle Count As A Best Practice
In a large warehouse, a physical inventory count can be time consuming, and the
time that it takes to perform a complete physical inventory may take the warehouse
out of production for too long. If you can't afford the downtime for a physical count,
cycle counting might be the best solution. A cycle count can be performed more
frequently and without negatively impacting warehouse operations.

There are a variety of different cycle count methods. The goal of each cycle count
method is to count a subset of "things" and then extrapolate the results to the
broader inventory pool. One method focuses on counting high-value inventory SKUs,
while another method targets high-turnover SKUs. There are also a variety of hybrid
cycle counting methods that use a combination of counting strategies. At the end of
day, a cycle count attempts to first validate the accuracy of your warehouse
management system of record. It subsequently updates the inventory estimates of
items not counted using the inventory trends identified by the items that were
counted.

As warehouses become more automated, there are new opportunities to automate

the cycle counting process. If you deploy a goods-to-person automation process,
then some form of automation (mobile robot or automated storage and retrieval) will
acquire and bring totes/bins/boxes of SKUs out of storage to a singulation point. As
individual items are picked for shipment, the storage unit can be tagged for an in-
process cycle count before it is returned to the storage location. This is just one
example of how warehouse automation is evolving to help improve the fulfillment
process.

Once you implement cycle counting, you will also want to rotate the target items that
are being counted. A common best practice is to ensure that every SKU is cycle
counted at least once per quarter. This includes overstock items and reserve
locations. Worst case, you might have a large, multi-level warehouse where items
can carelessly get misplaced. This can lead to apparent stockouts, that directly
impact your business and which might be easily preventable.

The Gather AI Solution

Our customers use the Gather AI solution to monitor their inventory. Drones fly
through their warehouses taking pictures of pallet locations. The pictures are
uploaded to the cloud where they are analyzed and compared with what’s stored in
the customer’s warehouse management system (WMS). The solution is 15 times
faster than traditional cycle counting. Faster cycle counts mean that inventory errors
can be found and fixed more quickly,

Conclusion
Every warehouse manager understands the business value of accurate inventory
counts. Every warehouse manager also feels the pain that it takes to maintain
accurate inventory and the operational disruption to perform an inventory count. Talk
to Gather AI about how we can help.

• Containerisation

Containerization
Last Updated: 2021-03-02

Containerization is the process of using standardized containers for the storage and transport
of loose units from a warehouse. The containers used for containerization are defined in
Catalog Management.

If you pack during picking, the results of containerization are used during picking. If you
pack after picking, the results of containerization are used during packing. When packing is
performed it is specified as part of the task type configuration in pick planning. This decision
affects the way in which containerization logic works. However, the parameters that govern
the logic remain the same regardless of when packing is performed.

The following constraints are evaluated during containerization:

 Buyer specific constraints include:

o Whether the container requires shipment container marking
o The level at which shipment container markings are applied
o Whether items can be mixed in a case based on different parameters, such as item
ID, mark for address, unit of measure
o Whether items can be mixed in a pallet based on different parameters, such as item
ID, mark for address, unit of measure
 Warehouse/Enterprise specific constraints include:
o Whether items can be mixed in a case based on different parameters, such as item
ID, mark for address, unit of measure
o Whether items can be mixed in a pallet based on different parameters, such as item
ID, mark for address, unit of measure
o Which containers can be used
o Whether the container requires shipment container marking based on parcel and
less-than truckload/truckload shipments
o The level at which shipment container markings are applied based on parcel and
less-than truckload/truckload shipments
 Container specific constraints include:
o The Buyer on the shipment line
o The shipment line item's containerization category
o The volume of the container that can be used
o The maximum weight the container can hold
o The quantity of a particular item the container can hold, based on item classification

In addition to the standard industry constraints, the ensures that a container does not contain
multiple shipments, task types, items requiring different value-added services, and container
categories.
 The provides the initial containerization estimate to determine the pick strategy, which is
recalculated during wave release in accordance with PLA.

A warehouse can also choose manual post-pick containerization. In this case a packer
provides details about the shipment container chosen, and the items in the container. For
example, warehouses that handle soft items defy regular area, volume calculations, like
clothes that have a 'squish' ratio or warehouses that do not have standard packs defined or are
in the process of establishing the same.

During containerization, the system creates Pallet labels if the item has an alternate UOM
with LPN type = Pallet and containerization quantity matches the alternate UOM quantity.
But for Parcel shipments, the creation of Pallet labels can be prevented by setting the property
yfs.prevent.palletlabel.for.parcelshipment.tasktypelist to a list of task types separated by
commas. If this property is not set or if the task is not among the task types mentioned in the
property value list, the system will retain the default behavior.

•
In the context of warehousing and logistics, "containerization" refers to the practice
of using standardized containers to transport and store goods. This practice has
become a fundamental aspect of modern shipping and warehousing, offering several
advantages:

1. Standardization:
 Containers come in standardized sizes, such as 20-foot or 40-foot lengths.
This standardization ensures compatibility across different modes of
transportation (ships, trains, trucks) and facilitates efficient stacking and
handling.
2. Intermodal Compatibility:
 Containers are designed to be easily transferred between different modes of
transportation without the need to unpack and repack the cargo. This
intermodal compatibility streamlines the logistics process, reducing handling
costs and transit times.
3. Efficient Loading and Unloading:
 Containers can be easily loaded and unloaded using cranes or specialized
equipment. This efficiency in handling speeds up the transfer of goods
between transportation modes and reduces the time spent in warehouses.
4. Security and Protection:
 Containers provide a secure and enclosed environment for goods during
transit and storage. They protect the contents from weather conditions, theft,
and damage, enhancing the overall safety and security of the cargo.
5. Modularity and Flexibility:
 Containers are modular units that can be easily stacked and arranged in
various configurations. This modularity allows for flexible storage solutions in
warehouses and efficient utilization of available space.
6. Inventory Control:
  Containerization facilitates better inventory control and tracking. Each
container can be labeled, and its contents documented, making it easier to
manage and monitor the movement of goods throughout the supply chain.
7. Reduced Handling Costs:
 Containerization minimizes the need for manual handling of individual items,
reducing labor costs and the risk of damage to goods. This is particularly
beneficial in large-scale warehousing operations.
8. Global Trade Facilitation:
 The widespread adoption of containerization has played a crucial role in
fostering global trade by simplifying the logistics processes. It has significantly
contributed to the growth of international trade and the globalization of
supply chains.
9. Technology Integration:
 Containerization often involves the use of technology, such as tracking
systems and sensors, to monitor the condition and location of goods. This
real-time data helps improve visibility and responsiveness in the supply chain.

Overall, containerization has revolutionized the efficiency and reliability of

transporting and storing goods in warehouses, contributing to the modernization of
the global logistics industry.
Containerization is a system of intermodal freight transport using intermodal containers (also
called shipping containers, or ISO containers).[1] Containerization, also referred as container
stuffing or container loading, is the process of unitization of cargoes in exports.
Containerization is the predominant form of unitization of export cargoes, as opposed to other
systems such as the barge system or palletization.[2] The containers
have standardized dimensions. They can be loaded and unloaded, stacked, transported
efficiently over long distances, and transferred from one mode of transport to another—container
ships, rail transport flatcars, and semi-trailer trucks—without being opened. The handling system
is mechanized so that all handling is done with cranes[3] and special forklift trucks. All containers
are numbered and tracked using computerized systems.

Containerization originated several centuries ago but was not well developed or widely applied
until after World War II, when it dramatically reduced the costs of transport, supported the post-
war boom in international trade, and was a major element in globalization. Containerization
eliminated manual sorting of most shipments and the need for dock front warehouses, while
displacing many thousands of dock workers who formerly simply handled break bulk cargo.
Containerization reduced congestion in ports, significantly shortened shipping time, and reduced
losses from damage and theft.[4]

Containers can be made from a wide range of materials such as steel, fibre-reinforced polymer,
aluminum or a combination. Containers made from weathering steel are used to
minimize maintenance needs.

Origin[edit]
 Loading assorted break bulk cargo onto ships manually

Transferring freight containers on the London, Midland and

Scottish Railway 1928
Before containerization, goods were usually handled manually as break bulk cargo. Typically,
goods would be loaded onto a vehicle from the factory and taken to a port warehouse where they
would be offloaded and stored awaiting the next vessel. When the vessel arrived, they would be
moved to the side of the ship along with other cargo to be lowered or carried into the hold and
packed by dock workers. The ship might call at several other ports before off-loading a given
consignment of cargo. Each port visit would delay the delivery of other cargo. Delivered cargo
might then have been offloaded into another warehouse before being picked up and delivered to
its destination. Multiple handling and delays made transport costly, time-consuming and
unreliable.[4]

Containerization has its origins in early coal mining regions in England beginning in the late 18th
century. In 1766 James Brindley designed the box boat 'Starvationer' with ten wooden
containers, to transport coal from Worsley Delph (quarry) to Manchester by Bridgewater Canal.
In 1795, Benjamin Outram opened the Little Eaton Gangway, upon which coal was carried
in wagons built at his Butterley Ironwork. The horse-drawn wheeled wagons on the gangway took
the form of containers, which, loaded with coal, could be transshipped from canal barges on
the Derby Canal, which Outram had also promoted.[5]

By the 1830s, railroads were carrying containers that could be transferred to other modes of
transport. The Liverpool and Manchester Railway in the UK was one of these, making use of
"simple rectangular timber boxes" to convey coal from Lancashire collieries to Liverpool, where a
crane transferred them to horse-drawn carriages.[6] Originally used for moving coal on and off
barges, "loose boxes" were used to containerize coal from the late 1780s, at places like
the Bridgewater Canal. By the 1840s, iron boxes were in use as well as wooden ones. The early
1900s saw the adoption of closed container boxes designed for movement between road and
rail.

Twentieth century[edit]
On 17 May 1917, Louisville, Kentucky native[7] Benjamin Franklin "B. F." Fitch (1877–1956)
[8]
launched commercial use of "demountable bodies" in Cincinnati, Ohio, which he had designed
as transferable containers. In 1919, his system was extended to over 200 containers serving 21
railway stations with 14 freight trucks.[9]
In 1919, Stanisław Rodowicz, an engineer, developed the first draft of the container system
in Poland. In 1920, he built a prototype of the biaxial wagon. The Polish-Bolshevik War stopped
development of the container system in Poland.[10]

The U.S. Post Office contracted with the New York Central Railroad to move mail via containers
in May 1921. In 1930, the Chicago & Northwestern Railroad began shipping containers between
Chicago and Milwaukee. Their efforts ended in the spring of 1931 when the Interstate Commerce
Commission disallowed the use of a flat rate for the containers.[11]

In 1926, a regular connection of the luxury passenger train from London to Paris, Golden
Arrow/Fleche d'Or, by Southern Railway and French Northern Railway, began. For transport of
passengers' baggage four containers were used. These containers were loaded in London or
Paris and carried to ports, Dover or Calais, on flat cars in the UK and "CIWL Pullman Golden
Arrow Fourgon of CIWL" in France. At the Second World Motor Transport Congress in Rome,
September 1928, Italian senator Silvio Crespi proposed the use of containers for road and
railway transport systems, using collaboration rather than competition. This would be done under
the auspices of an international organ similar to the Sleeping Car Company, which provided
international carriage of passengers in sleeping wagons. In 1928 Pennsylvania Railroad (PRR)
started regular container service in the northeast U.S. After the Wall Street Crash of 1929 in New
York and the subsequent Great Depression, many countries were without any means to transport
cargo. The railroads were sought as a possibility to transport cargo, and there was an opportunity
to bring containers into broader use. In February 1931 the first container ship was launched. It
was called the Autocarrier, owned by Southern Railway UK. It had 21 slots for containers of
Southern Railway.[12][13] Under auspices of the International Chamber of Commerce in Paris
in Venice on September 30, 1931, on one of the platforms of the Maritime Station (Mole di
Ponente), practical tests assessed the best construction for European containers as part of an
international competition.[14]

In 1931, in the U.S., B. F. Fitch designed the two largest and heaviest containers in existence.
One measured 17 ft 6 in (5.33 m) by 8 ft 0 in (2.44 m) by 8 ft 0 in (2.44 m) with a capacity of
30,000 pounds (14,000 kg) in 890 cubic feet (25 m3), and a second measured 20 ft 0 in (6.10 m)
by 8 ft 0 in (2.44 m) by 8 ft 0 in (2.44 m), with a capacity of 50,000 pounds (23,000 kg) in 1,000
cubic feet (28 m3).[15]

In November 1932, in Enola, PA, the first container terminal in the world was opened by
the Pennsylvania Railroad.[14] The Fitch hooking system was used for reloading of the containers.
[15]

The development of containerization was created in Europe and the U.S. as a way to revitalize
rail companies after the Wall Street Crash of 1929, which had caused economic collapse and
reduction in use of all modes of transport.[14]

In 1933 in Europe, under the auspices of the International Chamber of Commerce,

the International Container Bureau (French: Bureau International des Conteneurs, B.I.C.) was
established. In June 1933, the B.I.C. decided on obligatory parameters for containers used in
international traffic. Containers handled by means of lifting gear, such as cranes, overhead
conveyors, etc. for traveling elevators (group I containers), constructed after July 1, 1933.
Obligatory Regulations:

 Clause 1. Containers are, as regards form, either of the closed or the open type, and, as
regards capacity, either of the heavy or the light type.
 Clause 2. The loading capacity of containers must be such that their total weight (load, plus
tare) is: 5 tonnes (4.92 long tons; 5.51 short tons) for containers of the heavy type; 2.5
tonnes (2.46 long tons; 2.76 short tons) for containers of the light type; a tolerance of 5
percent excess on the total weight is allowable under the same conditions as for wagon
loads.[14]
 Obligatory norms for European containers since 1 July 1933 [citation needed]

length [m
Category [m (ftin)] [m (ftin)] Total mass [tons]
(ftin)]

Heavy types

Close type 3.25 m (10 ft 2.15 m 2.20 m

62 8 in) (7 ft 5⁄8 in) (7 ft 2+5⁄8 in)

Close type 2.15 m 2.15 m 2.20 m

42 (7 ft 5⁄8 in) (7 ft 5⁄8 in) (7 ft 2+5⁄8 in) 5 t (4.92 long tons; 5.51
short tons)
Open type 3.25 m (10 ft 2.15 m 1.10 m
61 8 in) (7 ft 5⁄8 in) (3 ft 7+1⁄4 in)

Open type 2.15 m 2.15 m 1.10 m

41 (7 ft 5⁄8 in) (7 ft 5⁄8 in) (3 ft 7+1⁄4 in)

Light Type

Close type 2.15 m 1.05 m 2.20 m

22 (7 ft 5⁄8 in) (3 ft 5+3⁄8 in) (7 ft 2+5⁄8 in)

Close type 2.15 m 1.05 m 1.10 m 2.5 t (2.46 long tons;

201 (7 ft 5⁄8 in) (3 ft 5+3⁄8 in) (3 ft 7+1⁄4 in) 2.76 short tons)

Open type 2.15 m 1.05 m 1.10 m

21 (7 ft 5⁄8 in) (3 ft 5+3⁄8 in) (3 ft 7+1⁄4 in)

In April 1935 BIC established a second standard for European containers: [14]

Obligatory norms for European containers since 1 April 1935

Categor Length [m Width [m

High [m (ftin)] Total mass [tons]
y (ftin)] (ftin)]

Heavy types

2.55 m 5 t (4.92 long tons; 5.51

Close 62 3.25 m (10 ft 2.15 m (8 ft 4+3⁄8 in) short tons)
8 in) (7 ft 5⁄8 in)
 2.15 m 2.55 m
Close 42 2.15 m (7 ft 5⁄8 in)
(7 ft 5⁄8 in) (8 ft 4+3⁄8 in)

3.25 m (10 ft 2.15 m 1.125 m

Open 61
8 in) (7 ft 5⁄8 in) (3 ft 8+5⁄16 in)

2.15 m 1.125 m
Open 41 2.15 m (7 ft 5⁄8 in)
(7 ft 5⁄8 in) (3 ft 8+5⁄16 in)

Light Type

1.50 m (4 ft 2.15 m 2.55 m

Close 32
11 in) (7 ft 5⁄8 in) (8 ft 4+3⁄8 in)
2.5 t (2.46 long tons; 2.76
short tons)
1.05 m 2.15 m 2.55 m
Close 22
(3 ft 5+3⁄8 in) (7 ft 5⁄8 in) (8 ft 4+3⁄8 in)

From 1926 to 1947 in the U.S., the Chicago North Shore and Milwaukee Railway carried motor
carrier vehicles and shippers' vehicles loaded on flatcars between Milwaukee, Wisconsin, and
Chicago, Illinois. Beginning in 1929, Seatrain Lines carried railroad boxcars on its sea vessels to
transport goods between New York and Cuba.[16]

In the mid-1930s, the Chicago Great Western Railway and then the New Haven Railroad began
"piggyback" service (transporting highway freight trailers on flatcars) limited to their own
railroads. The Chicago Great Western Railway filed a U.S. patent in 1938 on their method of
securing trailers to a flatcars using chains and turnbuckles. Other components included wheel
chocks and ramps for loading and unloading the trailers from the flatcars. [17] By 1953,
the Chicago, Burlington and Quincy, the Chicago and Eastern Illinois, and the Southern
Pacific railroads had joined the innovation. Most of the rail cars used were surplus flatcars
equipped with new decks. By 1955, an additional 25 railroads had begun some form of
piggyback trailer service.

World War II[edit]

During WWII, the Australian Army used containers to more easily deal with various breaks of
gauge in the railroads. These non-stackable containers were about the size of the later 20-foot
ISO container and perhaps made mainly of wood.[18][need quotation to verify]

Freight car in railway museum Bochum-Dahlhausen, showing

four different UIC-590 pa-containers
During the same time, the United States Army started to combine items of uniform size, lashing
them onto a pallet, unitizing cargo to speed the loading and unloading of transport ships. In 1947
the Transportation Corps developed the Transporter, a rigid, corrugated steel container with a
9,000 lb (4,100 kg) carrying capacity, for shipping household goods of officers in the field. It was
8 ft 6 in (2.59 m) long, 6 ft 3 in (1.91 m), and 6 ft 10 in (2.08 m) high, with double doors on one
end, mounted on skids, and had lifting rings on the top four corners. [19][20] During the Korean
War the Transporter was evaluated for handling sensitive military equipment and, proving
effective, was approved for broader use. Theft of material and damage to wooden crates
convinced the army that steel containers were needed.

Malcom McLean at railing, Port Newark, 1957

Mid-twentieth century[edit]
In April 1951, at Zürich Tiefenbrunnen railway station, the Swiss Museum of Transport
and Bureau International des Containers (BIC) held demonstrations of container systems, with
the aim of selecting the best solution for Western Europe. Present were representatives from
France, Belgium, the Netherlands, Germany, Switzerland, Sweden, Great Britain, Italy and the
United States. The system chosen for Western Europe was based on the Netherlands' system
for consumer goods and waste transportation called Laadkisten (literally, "loading bins"), in use
since 1934. This system used roller containers that were moved by rail, truck and ship, in various
configurations up to a capacity of 5,500 kg (12,100 lb), and up to 3.1 by 2.3 by 2 metres (10 ft
2 in × 7 ft 6+1⁄2 in × 6 ft 6+3⁄4 in) size.[21][22] This became the first post World War II European railway
standard UIC 590, known as "pa-Behälter." It was implemented in the Netherlands, Belgium,
Luxembourg, West Germany, Switzerland, Sweden and Denmark.[23] With the popularization of
the larger ISO containers, support for pa containers was phased out by the railways. In the 1970s
they began to be widely used for transporting waste.[23]
In 1952 the U.S. Army developed the Transporter into the CONtainer EXpress or CONEX
box system. The size and capacity of the Conex were about the same as the Transporter, [nb 1] but
the system was made modular, by the addition of a smaller, half-size unit of 6 ft 3 in (1.91 m)
long, 4 ft 3 in (1.30 m) wide and 6 ft 10+1⁄2 in (2.10 m) high.[26][27][nb 2] CONEXes could be stacked
three high, and protected their contents from the elements.[24]
The first major shipment of CONEXes, containing engineering supplies and spare parts, was
made by rail from the Columbus General Depot in Georgia to the Port of San Francisco, then by
ship to Yokohama, Japan, and then to Korea, in late 1952. Transit times were almost halved. By
the time of the Vietnam War the majority of supplies and materials were shipped by CONEX. By
1965 the U.S. military used some 100,000 Conex boxes, and more than 200,000 in 1967. [27]
[31]
making this the first worldwide application of intermodal containers.[24] After the US Department
of Defense standardized an 8-by-8-foot (2.44 by 2.44 m) cross section container in multiples of
10-foot (3.05 m) lengths for military use, it was rapidly adopted for shipping purposes.[citation needed]

In 1955, former trucking company owner Malcom McLean worked with engineer Keith
Tantlinger to develop the modern intermodal container.[32] All the containerization pioneers who
came before McLean had thought too small, because they were thinking in terms of optimizing
particular modes of transport. McLean's "fundamental insight" which made the intermodal
container possible was that the core business of the shipping industry "was moving cargo, not
sailing ships".[33] He visualized and helped to bring about a world reoriented around that insight,
which required not just standardization of the metal containers themselves, but drastic changes
to every aspect of cargo handling.[33]
In 1955, McLean and Tantlinger's immediate challenge was to design a shipping container that
could efficiently be loaded onto ships and would hold securely on sea voyages. The result was
an 8 feet (2.44 m) tall by 8 ft (2.44 m) wide box in 10 ft (3.05 m)-long units constructed
from 2.5 mm (13⁄128 in) thick corrugated steel. The design incorporated a twistlock mechanism atop
each of the four corners, allowing the container to be easily secured and lifted using cranes.
Several years later, as a Fruehauf executive, Tantlinger went back to McLean and convinced him
to relinquish control of their design to help stimulate the container revolution. On January 29,
1963, McLean's company SeaLand released its patent rights, so that Tantlinger's inventions
could become "the basis for a standard corner fitting and twist lock". [34] Tantlinger was deeply
involved in the debates and negotiations which in back-to-back votes in September 1965 (on
September 16 and 24, respectively) led to the adoption of a modified version of the Sea-Land
design as the American and then the international standard for corner fittings for shipping
containers.[35] This began international standardization of shipping containers.[36]

Purpose-built ships[edit]

Containers waiting at the South Korean port of Busan.

Main article: Container ship

The first vessels purpose-built to carry containers had begun operation in 1926 for the regular
connection of the luxury passenger train between London and Paris, the Golden Arrow/Fleche
d'Or. Four containers were used for the conveyance of passengers' baggage. These containers
were loaded in London or Paris and carried to the ports of Dover or Calais. [14] In February 1931
the first container ship in the world was launched. It was called the Autocarrier, owned by
Southern Railway UK. It had 21 slots for containers of Southern Railway. [12][13]

The next step was in Europe was after WW II. Vessels purpose-built to carry containers were
used between UK and Netherlands[23] and also in Denmark in 1951.[37] In the United States, ships
began carrying containers in 1951, between Seattle, Washington and Alaska.[38] None of these
services was particularly successful. First, the containers were rather small, with 52% of them
having a volume of less than 3 cubic metres (106 cu ft). Almost all European containers were
made of wood and used canvas lids, and they required additional equipment for loading into rail
or truck bodies.[39]

The world's first purpose-built container vessel was Clifford J. Rodgers,[40] built in Montreal in
1955 and owned by the White Pass and Yukon Corporation.[41] Her first trip carried 600 containers
between North Vancouver, British Columbia, and Skagway, Alaska, on November 26, 1955. In
Skagway, the containers were unloaded to purpose-built railroad cars for transport north to
Yukon, in the first intermodal service using trucks, ships, and railroad cars.[42] Southbound
containers were loaded by shippers in Yukon and moved by rail, ship, and truck to their
consignees without opening. This first intermodal system operated from November 1955 until
1982.[43]

The first truly successful container shipping company dates to April 26, 1956, when American
trucking entrepreneur McLean put 58 trailer vans[44] later called containers, aboard a refitted
tanker ship, the SS Ideal X, and sailed them from Newark, New Jersey to Houston, Texas.
[45]
Independently of the events in Canada, McLean had the idea of using large containers that
never opened in transit and that were transferable on an intermodal basis, among trucks, ships,
and railroad cars. McLean had initially favored the construction of "trailerships"—taking trailers
from large trucks and stowing them in a ship's cargo hold. This method of stowage, referred to
as roll-on/roll-off, was not adopted because of the large waste in potential cargo space on board
the vessel, known as broken stowage. Instead, McLean modified his original concept into loading
just the containers, not the chassis, onto the ship; hence the designation "container ship" or "box"
ship.[46][4] (See also pantechnicon van and trolley and lift van.)

Toward standards[edit]

Maersk Line containers in 1975.

Keppel Container Terminal in Singapore

During the first 20 years of containerization, many container sizes and corner fittings were used.
There were dozens of incompatible container systems in the US alone. Among the biggest
operators, the Matson Navigation Company had a fleet of 24-foot (7.32 m) containers, while Sea-
Land Service, Inc used 35-foot (10.67 m) containers. The standard sizes and fitting and
reinforcement norms that now exist evolved out of a lengthy and complex series of compromises
among international shipping companies, European railroads, US railroads, and US trucking
companies. Everyone had to sacrifice something. For example, to McLean's frustration, Sea-
Land's 35-foot container was not adopted as one of the standard container sizes. [34] In the end,
four important ISO (International Organization for Standardization) recommendations
standardized containerization globally:[47]

 January 1968: ISO 668 defined the terminology, dimensions and ratings.
 July 1968: R-790 defined the identification markings.
 January 1970: R-1161 made recommendations about corner fittings.
 October 1970: R-1897 set out the minimum internal dimensions of general purpose freight
containers.
Based on these standards, the first TEU container ship was the Japanese Hakone
Maru [de; jp] from shipowner NYK, which started sailing in 1968 and could carry 752 TEU
containers.

In the US, containerization and other advances in shipping were impeded by the Interstate
Commerce Commission (ICC), which was created in 1887 to keep railroads from using
monopolist pricing and rate discrimination, but fell victim to regulatory capture. By the 1960s, ICC
approval was required before any shipper could carry different items in the same vehicle or
change rates. The fully integrated systems in the US today became possible only after the ICC's
regulatory oversight was cut back (and abolished in 1995). Trucking and rail were deregulated in
the 1970s and maritime rates were deregulated in 1984.[48]

Double-stacked rail transport, where containers are stacked two high on railway cars, was
introduced in the US. The concept was developed by Sea-Land and the Southern Pacific
railroad. The first standalone double-stack container car (or single-unit 40-ft COFC well car) was
delivered in July 1977. The five-unit well car, the industry standard, appeared in 1981. Initially,
these double-stack railway cars were deployed in regular train service. Ever since American
President Lines initiated in 1984 a dedicated double-stack container train service between Los
Angeles and Chicago, transport volumes increased rapidly.[49]

Effects[edit]

Shanghai Express, Port of Rotterdam

Containerization greatly reduced the expense of international trade and increased its speed,
especially of consumer goods and commodities. It also dramatically changed the character of
port cities worldwide. Prior to highly mechanized container transfers, crews of 20 to
22 longshoremen would pack individual cargoes into the hold of a ship. After containerization,
large crews of longshoremen were not necessary at port facilities, and the profession changed
drastically.

Meanwhile, the port facilities needed to support containerization changed. One effect was the
decline of some ports and the rise of others. At the Port of San Francisco, the former piers used
for loading and unloading were no longer required, but there was little room to build the vast
holding lots needed for storing and sorting containers in transit between different transport
modes. As a result, the Port of San Francisco essentially ceased to function as a major
commercial port, but the neighboring Port of Oakland emerged as the second largest on the US
West Coast. A similar fate occurred with the relationship between the ports of Manhattan and
New Jersey. In the UK, the Port of London and Port of Liverpool declined in importance.
Meanwhile, Britain's Port of Felixstowe and Port of Rotterdam in the Netherlands emerged as
major ports.

In general, containerization caused inland ports on waterways incapable of receiving deep-

draft ship traffic to decline in favor of seaports, which then built vast container terminals next to
deep oceanfront harbors in lieu of the dockfront warehouses and finger piers that had formerly
handled break bulk cargo. With intermodal containers, the jobs of packing, unpacking, and
sorting cargoes could be performed far from the point of embarkation. Such work shifted to so-
called "dry ports" and gigantic warehouses in rural inland towns, where land and labor were
much cheaper than in oceanfront cities. This fundamental transformation of where warehouse
work was performed freed up valuable waterfront real estate near the central business districts of
port cities around the world for redevelopment and led to a plethora of waterfront revitalization
projects (such as warehouse districts).[50]

The effects of containerization rapidly spread beyond the shipping industry. Containers were
quickly adopted by trucking and rail transport industries for cargo transport not involving sea
transport. Manufacturing also evolved to adapt to take advantage of containers. Companies that
once sent small consignments began grouping them into containers. Many cargoes are now
designed to precisely fit containers. The reliability of containers made just in time
manufacturing possible as component suppliers could deliver specific components on regular
fixed schedules.

In 2004, global container traffic was 354 million TEUs, of which 82 percent were handled by the
world's top 100 container ports.[51]

Twenty-first century[edit]

Maersk Virginia departing from Fremantle, Australia

As of 2009, approximately 90% of non-bulk cargo worldwide is moved by containers stacked on
transport ships;[52] 26% of all container transshipment is carried out in China.[53] For example, in
2009 there were 105,976,701 transshipments in China (both international and coastal, excluding
Hong Kong), 21,040,096 in Hong Kong (which is listed separately), and only 34,299,572 in the
United States. In 2005, some 18 million containers made over 200 million trips per year. Some
ships can carry over 14,500 twenty-foot equivalent units (TEU), such as the Emma Mærsk,
396 m (1,299 ft) long, launched in August 2006. It has been predicted that, at some point,
container ships will be constrained in size only by the depth of the Straits of Malacca, one of the
world's busiest shipping lanes, linking the Indian Ocean to the Pacific Ocean. This so-
called Malaccamax size constrains a ship to dimensions of 470 m (1,542 ft) in length and 60 m
(197 ft) wide.[4]

Few foresaw the extent of the influence of containerization on the shipping industry. In the 1950s,
Harvard University economist Benjamin Chinitz predicted that containerization would benefit New
York by allowing it to ship its industrial goods more cheaply to the Southern US than other areas,
but he did not anticipate that containerization might make it cheaper to import such goods from
abroad. Most economic studies of containerization merely assumed that shipping companies
would begin to replace older forms of transportation with containerization, but did not predict that
the process of containerization itself would have a more direct influence on the choice of
producers and increase the total volume of trade.[4]

The widespread use of ISO standard containers has driven modifications in other freight-moving
standards, gradually forcing removable truck bodies or swap bodies into standard sizes and
shapes (though without the strength needed to be stacked), and changing completely the
worldwide use of freight pallets that fit into ISO containers or into commercial vehicles.

Improved cargo security is an important benefit of containerization. Once the cargo is loaded into
a container, it is not touched again until it reaches its destination.[54] The cargo is not visible to
casual viewers, and thus is less likely to be stolen. Container doors are usually sealed so that
tampering is more evident. Some containers are fitted with electronic monitoring devices and can
be remotely monitored for changes in air pressure, which happens when the doors are opened.
This reduced thefts that had long plagued the shipping industry. Recent developments have
focused on the use of intelligent logistics optimization to further enhance security.

The use of the same basic sizes of containers across the globe has lessened the problems
caused by incompatible rail gauge sizes. The majority of the rail networks in the world operate on
a 1,435 mm (4 ft 8+1⁄2 in) gauge track known as standard gauge, but some countries (such as
Russia, India, Finland, and Lithuania) use broader gauges, while others in Africa and South
America use narrower gauges. The use of container trains in all these countries makes
transshipment between trains of different gauges easier.
Containers have become a popular way to ship private cars and other vehicles overseas using
20- or 40-foot containers. Unlike roll-on/roll-off vehicle shipping, personal effects can be loaded
into the container with the vehicle, allowing easy international relocation. [citation needed]

In July, 2020, The Digital Container Shipping Association (DCSA), a non-profit group established
to further digitalisation of container shipping technology standards, published standards for the
digital exchange of operational vessel schedules (OVS).[55]

Contrary to ocean shipping containers owned by the shippers, a persisting trend in the industry is
for (new) units to be purchased by leasing companies. Leasing business accounted for 55% of
new container purchases in 2017, with their box fleet growing at 6.7%, compared to units of
transport operators growing by just 2.4% more TEU, said global shipping consultancy Drewry in
their 'Container Census & Leasing and Equipment Insight', leading to a leased share of the
global ocean container fleet reaching 54% by 2020.[56]

In 2021, the average time to unload a container in Asia was 27 seconds, the average time in
Northern Europe was 46 seconds, and the average time in North America was 76 seconds. [57]

Container standards[edit]
ISO standard[edit]
Main article: Intermodal container

40 foot containers on the BNSF line through La Crosse

There are five common standard lengths:

 20 ft (6.10 m)
 40 ft (12.19 m)
 45 ft (13.72 m)
 48 ft (14.63 m)
 53 ft (16.15 m)
US domestic standard containers are generally 48 ft (14.63 m) and 53 ft (16.15 m) (rail and
truck). Container capacity is often expressed in twenty-foot equivalent units (TEU, or
sometimes teu). An equivalent unit is a measure of containerized cargo capacity equal to one
standard 20 ft (6.10 m) (length) × 8 ft (2.44 m) (width) container. As this is an approximate
measure, the height of the box is not considered. For instance, the 9 ft 6 in (2.90 m) high
cube and the 4 ft 3 in (1.30 m) half height 20 ft (6.10 m) containers are also called one TEU. 48'
containers have been phased out over the last ten years in favor of 53' containers.

The maximum gross mass for a 20 ft (6.10 m) dry cargo container was initially set at 24,000 kg
(53,000 lb), and 30,480 kg (67,200 lb)for a 40 ft (12.19 m) container (including the 9 ft 6 in or
2.90 m high cube) . Allowing for the tare mass of the container, the maximum payload mass is
therefore reduced to approximately 22,000 kg (49,000 lb) for 20 ft (6.10 m), and 27,000 kg
(60,000 lb) for 40 ft (12.19 m) containers.[58]
It was increased to 30,480 kg for the 20' in 2005, then further increased to a max of 36,000 kg for
all sizes by the amendment 2 (2016) of the ISO standard 668 (2013).

The original choice of 8-foot (2.44 m) height for ISO containers was made in part to suit a large
proportion of railway tunnels, though some had to be modified. The current standard is eight feet
six inches (2.59 m) high. With the arrival of even taller hi-cube containers at nine feet six inches
(2.90 m) and double stacking rail cars, further enlargement of the rail loading gauge is proving
necessary.[59]

Air freight containers[edit]

A number of LD-designation Unit Load Device containers

Main article: Unit load device

While major airlines use containers that are custom designed for their aircraft and associated
ground handling equipment the IATA has created a set of standard aluminium container sizes of
up to 11.52 m3 (407 cu ft) in volume.

Other container system standards[edit]

Some other container systems (in date order) are:

 (1922) NYC container[60]

 (1924) von-Haus-zu-Haus (house to house; Germany)[61]
 Japanese railway containers: Containers used by the Japan Freight Railway Company[citation
needed]

 (1925) Mack[62]
 (1927) English Railway container[63][64][65]
 (1928) Victorian Railways – refrigerated container[66]
 (1929) International Competition[67]
 (1930) GWR Container[68]
 (1931) International Chamber of Commerce[69]
 (1933) International Container Bureau:[14][70]
 (1936) South Australian Railways Wolseley break of gauge[71]
 (1946) Queensland Railways milk container, 2,000 imperial gallons (9,100 L; 2,400 US gal),
road-rail[72]
 (1974) RACE (Australia) – slightly wider than ISO containers to fit slightly wider Australian
Standard pallets[73][74]
 (1994) ACTS roller containers for intermodal transport by rail and road (Central Europe)
 (1998) PODS
 (2005?) SECU (Sweden, Finland, UK) – big 95 t (93 long tons; 105 short tons) container.
 Pallet-wide containers are used in Europe and have length (45, 40 or 20 ft or 13.72, 12.19 or
6.10 m) and height like ISO-containers, but they are 2.484 m (8 ft 1+3⁄4 in) wide externally
and 2.420 m (7 ft 11+1⁄4 in) internally to fit EUR-pallet better.[75] They are meant for transport
inside Europe and are often accepted in ships.
 (2014) The IPPC's Sea Container Task Force (SCTF) finalises the Cargo Transport Units
Code (CTU Code).[76]
 (2021) The National Standard of the People's Republic of China is GB/T 39919-2021 Code
of practice for the plant quarantine of exit freight containers as of November 1, 2021.[76]

Container loading[edit]
Full container load[edit]
A full container load (FCL)[77] is an ISO standard container that is loaded and unloaded under the
risk and account of one shipper and one consignee. In practice, it means that the whole
container is intended for one consignee. FCL container shipment tends to have lower freight
rates than an equivalent weight of cargo in bulk. FCL is intended to designate a container loaded
to its allowable maximum weight or volume, but FCL in practice on ocean freight does not always
mean a full payload or capacity – many companies will prefer to keep a 'mostly' full container as
a single container load to simplify logistics and increase security compared to sharing a container
with other goods.

Less-than-container load[edit]
See also: less-than-carload

Less-than-container load (LCL) is a shipment that is not large enough to fill a standard cargo
container. The abbreviation LCL formerly applied to "less than (railway) car load" for quantities of
material from different shippers or for delivery to different destinations carried in a single railway
car for efficiency. LCL freight was often sorted and redistributed into different railway cars at
intermediate railway terminals en route to the final destination.[78]

Groupage is the process of filling a container with multiple shipments for efficiency.[79]

LCL is "a quantity of cargo less than that required for the application of a carload rate. A quantity
of cargo less than that which fills the visible or rated capacity of an inter-modal container." [citation
needed]
It can also be defined as "a consignment of cargo which is inefficient to fill a shipping
container. It is grouped with other consignments for the same destination in a container at a
container freight station".[80]

Issues[edit]
Hazards[edit]
Containers have been used to smuggle contraband or stolen cars. The vast majority of
containers are never subjected to scrutiny due to their large numbers. In recent years there have
been increased concerns that containers might be used to transport terrorists or terrorist
materials into a country undetected. The US government has advanced the Container Security
Initiative (CSI), intended to ensure that high-risk cargo is examined or scanned, preferably at the
port of departure.

Empty containers[edit]
Containers are intended to be used constantly, being loaded with new cargo for a new
destination soon after emptied of previous cargo. This is not always possible, and in some cases,
the cost of transporting an empty container to a place where it can be used is considered to be
higher than the worth of the used container. Shipping lines and container leasing companies
have become expert at repositioning empty containers from areas of low or no demand, such as
the US West Coast, to areas of high demand, such as China. Repositioning within the port
hinterland has also been the focus of recent logistics optimization work. Damaged or retired
containers may be recycled in the form of shipping container architecture, or the steel content
salvaged. In the summer of 2010, a worldwide shortage of containers developed as shipping
increased after the recession, while new container production had largely ceased. [81]
Loss at sea[edit]

In a hurricane containers falling overboard – North Atlantic in winter 1980

Containers occasionally fall from ships, usually during storms. According to media sources,
between 2,000[82] and 10,000 containers are lost at sea each year.[83] The World Shipping
Council states in a survey among freight companies that this claim is grossly excessive and
calculated an average of 350 containers to be lost at sea each year, or 675 if including
catastrophic events.[84] For instance, on November 30, 2006, a container washed ashore[85] on the
Outer Banks of North Carolina, along with thousands of bags of its cargo of Doritos Chips.
Containers lost in rough waters are smashed by cargo and waves, and often sink quickly.
[82]
Although not all containers sink, they seldom float very high out of the water, making them a
shipping hazard that is difficult to detect. Freight from lost containers has
provided oceanographers with unexpected opportunities to track global ocean currents, notably a
cargo of Friendly Floatees.[86]

In 2007 the International Chamber of Shipping and the World Shipping Council began work on a
code of practice for container storage, including crew training on parametric rolling, safer
stacking, the marking of containers, and security for above-deck cargo in heavy swell. [87][88]

In 2011, the MV Rena ran aground off the coast of New Zealand. As the ship listed, some
containers were lost, while others were held on board at a precarious angle.

Trade union challenges[edit]

Some of the biggest battles in the container revolution were waged in Washington, D.C..
Intermodal shipping got a huge boost in the early 1970s, when carriers won permission to quote
combined rail-ocean rates. Later, non-vessel-operating common carriers won a long court battle
with a US Supreme Court decision against contracts that attempted to require that union labor be
used for stuffing and stripping containers at off-pier locations.[89]

As pest vector[edit]
Containers are often infested with pests.[90][91] Pest introductions are significantly clustered around
ports, and containers are a common source of such successful pest transfers.[90][91] The IPPC Sea
Container Task Force (SCTF) promulgates the Cargo Transport Units Code (CTU),
prescribed pesticides and other standards (see § Other container system standards) and
recommendations for use in container decontamination, inspection and quarantine. [76] The SCTF
also provides the English translation of the National Standard of China (GB/T 39919-2021).[76]

Other uses for containers[edit]

 A converted container used as an office at a building site
Shipping container architecture is the use of containers as the basis for housing and other
functional buildings for people, either as temporary or a permanent housing, and either as a main
building or as a cabin or as a workshop. Containers can also be used as sheds or storage areas
in industry and commerce.

Tempo Housing in Amsterdam stacks containers for individual housing units.

Containers are also beginning to be used to house computer data centers, although these are
normally specialized containers.

There is now a high demand for containers to be converted in the domestic market to serve
specific purposes.[92] As a result, a number of container-specific accessories have become
available for a variety of applications, such as racking for archiving, lining, heating, lighting,
powerpoints to create purpose-built secure offices, canteens and drying rooms, condensation
control for furniture storage, and ramps for storage of heavier objects. Containers are also
converted to provide equipment enclosures, pop-up cafes, exhibition stands, security huts and
more.

Public containerised transport[93] is the concept, not yet implemented, of modifying motor vehicles
to serve as personal containers in non-road passenger transport.

The ACTS roller container standards have become the basis of containerized firefighting
equipment throughout Europe.

Containers have also been used for weapon systems, such as the Russian Club-K, which allow
the conversion of an ordinary container system into a missile boat, capable of attacking surface
and ground targets, and the CWS (Containerized Weapon System)[94] developed for the US Army
that allow for the rapid deployment of a remote controlled machine gun post from a container.

• Mobile communication

Wireless network at a Warehouse, or It’s Not

As Simple As It Seems
In this article we explain the nuances we, as the integrator, came across
during warehouses and production areas equipping with wireless networks.
These days the warehouse operation without Wi-Fi is impossible – wireless data acquisition
terminals allow to perform the processes of goods flow inventory and accounting in any place, as
well as to provide mobility of cash registers, weight scales, checkers, printers, information units
(incl. video), workplaces. As a bonus you can get a transport for voice services and geolocation
systems operation.
 Why this topic is so relevant? Surprisingly, but 50 % of our projects on warehouse areas
equipping with Wi-Fi are related with modernization of the existing Wi-Fi networks. The thing is
that far too many people make mistakes at Wi-Fi network design stage, and these mistakes
should be corrected later. But it involves expenses on additional equipment, movement, and
even replacement of the existing solution; it means time, money and operational downtime.

FURTHER WE EXPLAIN WHAT MISTAKES MAY APPEAR AT WI-FI NETWORK PLANNING STAGE,
HOW TO AVOID THEM AND DESIGN EVERYTHING PERFECTLY FROM THE START

Mistake No.1.
Many people go with the network planning in warehouses, using experience of Wi-Fi access
points allocation in offices, therefore they consider the point operating range as a circle of 17–25
m. But this is wrong!

Classic mistake – access point directional pattern, its lifting height, stacks height and stored
goods type are not considered at planning.

What is “directional pattern”? If you are not familiar with this term, it’s easier to imagine the
principle pf Wi-Fi access point signal radiation as a principle of a horn loudspeaker action.

Directional pattern defines in which direction an antenna will radiate more, concentrating the
energy, and receive the response in a better way. Similar to the horn loudspeaker: we speak into
it – we are heard better, we put it to ear – we hear better. But it should be understood, that it
works only for the side, to which the horn loudspeaker is directed, from other sides the audibility
immediately becomes worse.

For example, the radiation pattern of access points with omnidirectional "dipole" antennas, which
are classic for office installations, looks like this:

(the radiation pattern for Cisco AIR-ANT2524Dx-R antennas is in the figure. For access points
with internal antennas, the radiation pattern will also be similar:)
(the radiation pattern of Cisco1702I access point is in the figure, modern access points like Cisco
C9105AXI, C9115AXI, C91120AXI will have similar patterns)

It means that in horizontal plane the access point “radiates” almost the same to all sides. But in
vertical plane the main radiated energy comes sideways. I.e. the access point copes well with its
task of covering the specified radius in the office when it is mounted on a ceiling.

But in a warehouse, if lifting height is 18 meters or more and there are high stacks with radar
absorbing goods, the following is possible:
It turns out, that the access point will “radiate” the space above the stacks well, but, being directly
below it, you can get the low signal level, not to mention that the signal will not be propagating to
the adjacent passages! Therefore, we make the conclusion, that not all access points are equally
useful and applicable.

Also the following is often observed:

In this case the access point is located directly above the stack. If stack is high, goods on it can
totally block the signal from it. Usually it happens, when planning and construction of wireless
network are preformed before receiving the stacks location plans, which is absolutely
discouraged. Therefore for the best coverage the access points should be located above the
passages.
What access points should be used for warehouse planning?

Unfortunately, there is no single solution, since a lot of things will depend on various factors: on
premises configuration, materials, stacks height, beams/ceiling boards configuration, possible
places of access points location and many more. Therefore the right decision is to make an
individual project specifically for your premise.

If you don’t have staff specialists, approach the companies, providing professional services for
Wi-Fi network planning. Usually the cost includes theoretical planning using professional
software (of Ekahau or Airmagnet Site Survey type), as well as on-site visit and measurements
performing directly in your premises. Specialist on site, using telescope mast, will locate the
selected type of access points on the corresponding height and will test the planning accuracy.

If for some reason you don’t want to use the professional services, then the reliable and universal
solution for covering the long passages between the stacks is using the points with narrow-beam
antennas, mounted on a wall at the start of the passage. Thus, without any problems you can
cover the passage between the stacks for a distance of 100 m and more, and, what is more
important, you don’t need to worry for access points safety anymore (in actual practice there are
a lot of cases of damaging the access points and antennas, located in the stacks area, during
goods handling). Due to beamed antennas the less access points are required for the area
coverage, and they impact each other less, that is good for Wireless network operation stability.
Implementation of such design can be realized with access points with the ability to connect
external panel antennas, for example, Cisco C9115AXE ($1.1k GPL) with the original AIR-
ANT2566D4M-RS antenna ($800 GPL). Such antennas can be adjusted in both dimensions, so
regardless of the height of the suspension and the length of the passage, it will be possible to
choose the best way to place it
You can save on external antennas, for example, by purchasing a directional 3rd party panel
antenna like dual-band Interline 4x4 MIMO IP-G10-F2458-HV-M instead of the original one. And
for very budget solutions, MikroTik always has a wide selection of wireless products.

Also in some configurations it will be appropriate to use outdoor points with internal antennas, for
example Ruckus T350

Mistake No.2
Network planning for low signal level. Many customers do not impose high requirements to Wi-Fi
signal level in warehouses, since, according to them, they don’t need high rates for DAT
operation. But in doing so, they become victims of a very tricky situation, related to peculiarities
of Wi-Fi operation in a far-field.

Here for explaining the situation we have to dig into the technical terms. Indeed, the received
signal level defines the selection of modulation and, as a result, the rate of connection to
network. Look into the table of receiver sensitivity for a range of 2,4GHz for 802.11n for the same
Cisco 1702i access points.

It would seem, that at signal level of -75dBm the maximum rate of client connection to access
point should be achieved. But it should be noted, that Wi-Fi signal level can decrease by ten
folds with adapter movement due to multibeam transmission. Therefore, actually, the most
common reason for signal level jumps is a adapter obscuring with obstacle (body running out of
the box, furniture item or barrier), that can easily result in the signal level drop by 10dB.

You can check it with ease: if you install some simple app like “Wi-Fi Analyser” on your phone,
you can see, how the level of the received signal from you home router jumps on its own. Then
try to stand on a path between your phone and the router or put a book on the router, you can
firmly hold the phone with both hands in its upper part: as soon as the received signal starts to
drop, the client adapter will not only try to switch to lower rate, but will also start an active
roaming process, specifically – it will bounce by frequencies, searching for adjacent access
points with higher signal level and trying to connect to them. In practice it will result in real lags,
pretty visible and noticeable by user during client apps operation.

But the worst is ahead. There is a nuance: as known, Wi-Fi operates in half-duplex mode, i.e. at
any one time it transfers or receives information from one client only. The nuance is in the fact,
that by default the access point draws no distinction between the clients, operating with high and
low rates: under equal competitive conditions of the network access over the same period of time
the client, connected with a high rate, transfers the same amount of data as the client, connected
with a low rate.

Clearly we have the following picture: let’s assume we have 2 clients, operating in 802.11n in a
range of 2,4GHz. The first is connected with maximum rate of 150 Mb/s, the second – with
minimum of 6 Mb/s

For ease of perception we will calculate using modulation rate, since the actual Wi-Fi rates are
lower due to time of competing for media access, safeguards, service protocols operation, etc.
Let’s assume that the first client transfers 1 Mb of information in 50 ms, while the second one – in
1500 ms. But there is a nuance: all the time, while the client with low connection rate transfers its
data, the client with high rate stands idle.

By making simple mathematical proportion, it could be seen, that actually under the same activity
the client with high data transfer rate obtains the rate of not 150 Mb/s, but 5 Mb/s, that is 30 times
lower.
The real picture is worse than theoretical. There could be several clients in the far-field. Clients
can be located in the far-field on the different sides of the access point. In this case they may “not
hear” the start of data transfer from other client and try to transfer their data, thus creating an
active interference.

It is possible to save the situation to some degree by lowering the values of RTS threshold /
Fragmentation threshold, but this makes the band, available for transfer, even more narrow due
to packet fragmentation and increased service traffic for RTS/CTS mechanism.
In our practice we had the cases, when just 5 “kind of” band-undemanding DATs, being in the
far-field of a single access point at a theoretically acceptable level of -75 -80dBm, created
network lags of 1–2 seconds, resulting in very unstable operation of an app.

Therefore:

By the way, the 802.11ac Wave2 or 802.11ax standard partially solves this problem, but it won’t
help us in the warehouse designs (AP allows you to optimize the band only for a small number of
CPE simultaneously working with the access point, and there are no terminal devices supporting
the standard yet) .

Modern solutions also allow to setup Wi-Fi network to automatically de-associate the clients with
low signal level by the specified threshold value. But for the client to have a place to connect, the
network should provide the high signal level everywhere!

What signal level is considered high?

The professional community opinion is the following: Wi-Fi network should be designed at -
67dBm (for instance, see Cisco Enterprise Mobility Design Guide). In general, I agree with this
number, but I also want to clarify, that this is true regardless of Wi-Fi network load. Of course, in
individual cases, when network load will indeed be low and no scaling is planned, the
requirements can be lowered.

Mistake No.3
Attempts to “swindle” with signal level.

It is rather common, we have already reworked several such facilities. Access point with
overstated radiation power, that, considering the beamed antennas, can easily “radiate” the
territories with high signal level with radius of 200 m, is purchased. But at the same time the fact,
that client device continues to operate with power of 50 mV and can not “hear” its access points,
is completely ignored.

As a result, the client device has the full signal scale, but apps do not work.
It should be understood, that the access points with overstated power are used in two particular
cases: the first one is arrangement of bridges, the second one is Metropolitan Access, i.e.
arrangement of coverage in a city or other external sites, where Wi-Fi clients also include special,
usually stationary devices with overstated transmitter power and the beamed antenna.

Mistake No.4
Planning by signal level only, without considering the frequency planning.

The thing is that another characteristic becomes effective at frequency planning – signal-to-noise
ratio (SNR). It defines, how much the signal level from the operating access point is higher than
all possible noises, interferences from adjacent intrinsic and foreign access points, as well as
client devices. It should be understood, that the higher the network load, i.e. the more Wi-Fi
devices you have and the more active they are, the more interferences they make for the
adjacent access points, operating on the same channels as the devices.

Usually, at design stage the requirements are set for SNR value to be at least 20dB (somewhere
even 25dB, and in modern All-wireless networks on the ax standard - all 30dB). This number is
justified with the receiver sensitivity parameters, specified in IEEE standard, when the accepted
levels of PER/BER (packet error rate/bit error rate) are achieved at SNR of 10dB (and 10dB is
taken “as a reserve” specifically for the case of signal/noise/interference level jumps).

How can the low SNR do harm? First of all, the errors will appear on receiver, resulting in
repeating of data transfer, and it means significant lags in apps operation in Wi-Fi network for all
connected clients (see above on half-duplex nature of Wi-Fi network) to the extent of its complete
failure.

For instance, let’s examine the situation, when the access points in a range of 2,4GHz were set
for a single operating channel (very realistic situation, especially in the lack of wireless network
controller). External networks and interferences are absent. At load simulation in Wi-Fi network
starting from 10 % (either rather high activity or a lot of clients) the access points and clients start
to actively cause interferences for adjacencies, that is manifested in SNR level of less than 25dB
(shown in grey in the figure).
In real practice the picture will be even worse. But the correct frequency arrangement solves the
problem:
But with network load increase (simulated as 20 %) we can see the grey areas again:
What should we do? The problem is that to maintain the high signal level and to provide the lack
of interference in a range of 2,4GHz is very problematic, since there are only 3 non-overlapping
operating frequencies in this range (1-6-11, or you can use a partially intersecting 1-5-9-13
scheme - where allowed).

One of the ways is a power reduction of the access point transmitter. However, at the same time
we also reduce its activity area, resulting in necessity of more equipment installation at a facility.
The most effective way to eliminate such problems is a transition to a frequency range of 5GHz,
in which 24 non-overlapping channels can be used in the RF. Therefore with the same load
parameters the picture at a frequency of 5GHz will look totally different:

Unfortunately, the usage of 5GHz range in Wi-Fi has its nuances:

 first of all, there are a lot of old client equipment, that operates in 2,4GHz frequency range only
(especially relevant for warehouses, since the majority of such clients are old DATs)

 secondly, the signal at 5GHz frequency propagates worse (due to high value of energy
dissipation in space or obstacles for such frequency, i.e. the heating is higher), than in a range of
2,4GHz. Therefore during network planning for 5GHz range it should be considered, that number
of access points should be increased almost by 30 % (for individual cases it may be up to 100
%). For instance, in case of simulation of signal propagation in a crowd, the effective distance of
Wi-Fi (for level of -67dBm) in various ranges will differ by a factor of 2. In real practice we will
have the similar numbers

In practice, for typical installations in free premises the effective operating radius in a range of
2,4GHz is usually about 25 m, for 5GHz – 17 m.

What conclusions should be made?

 perform the frequency radio planning of a radio network, if possible develop the strategic
frequency plan, or use wireless controller of Wi-Fi network for frequencies automatic selection

 at the stage of Wi-Fi network design plan everything for 5GHz frequency range, it can greatly
help for network scaling. For instance, the voice services can be arranged, Wi-Fi video camera
can be put somewhere or the remote workplace, demanding in terms of bandwidth, can be
arranged without a problem in your warehouse in the future
 About safety
We will not discuss here the specifics of authorization methods, since there are a lot of articles
on that, but we will write about real situations.

The most common threat, observed by us during radio inspections, is the following:

• Material handling
Material handling in a warehouse refers to the process of moving, controlling, and
managing goods within a storage facility. It involves the efficient and systematic
handling of materials from the point of entry to storage, and ultimately to the point
of use or shipment. Proper material handling is crucial for optimizing warehouse
operations, reducing costs, and improving overall efficiency. Here are some key
aspects of warehouse material handling:

1. Receiving:
 Goods arrive at the warehouse and need to be unloaded and checked for
accuracy.
 Receiving involves the inspection of incoming shipments, verification of
quantities, and updating inventory records.
2. Storage:
 After receiving, goods are stored in designated areas within the warehouse.
 Efficient storage systems, such as pallet racking or automated storage
systems, help maximize space utilization.
3. Order Picking:
 When customer orders are received, warehouse staff selects the required
items from storage.
 Various picking methods, such as batch picking or zone picking, can be
employed to optimize the picking process.
4. Packing:
 Picked items are then packed for shipping.
 Efficient packing processes help ensure that items are secure during
transportation and reduce the risk of damage.
5. Sorting and Consolidation:
 Items may need to be sorted or consolidated based on specific criteria before
shipping.
 This step helps streamline the shipping process and ensures that orders are
complete.
6. Shipping:
 The final step involves loading the packed goods onto trucks for
transportation.
  Efficient loading processes can minimize shipping errors and reduce
loading/unloading times.
7. Returns Handling:
 Dealing with returned goods involves a reverse process, including inspection,
restocking, and updating inventory.
8. Equipment and Technology:
 Various material handling equipment, such as forklifts, conveyor systems, and
automated guided vehicles (AGVs), can be employed to facilitate efficient
movement within the warehouse.
 Warehouse management systems (WMS) and other technology solutions help
in tracking inventory, managing orders, and optimizing overall warehouse
operations.
9. Safety Measures:
 Implementing safety measures is essential to prevent accidents and injuries
during material handling activities.
 Staff training, proper signage, and the use of personal protective equipment
contribute to a safe working environment.

Effective material handling in a warehouse not only improves efficiency but also
reduces costs and enhances customer satisfaction by ensuring accurate and timely
order fulfillment.

In a warehouse environment, material handling is commonly defined as the

“movement, protection, storage and control of materials and products
throughout manufacturing, warehousing, distribution, consumption and
disposal.” The process incorporates a variety of manual, semi-automated
and automated equipment and systems that allow the supply chain to work
efficiently. When used properly, material handling can improve:

 Forecasting
 Resource allocation
 Production planning
 Flow and process management
 Inventory management
 Customer delivery
 Customer service and support

WAREHOUSE MATERIAL HANDLER

Warehouse material handlers play an integral role in the operations of any
warehouse because they find products or materials on shelves, pull them,
pack them and put them on a delivery truck. They’re also the workers who
unload materials off trucks and store items in their proper locations within a
warehouse.
Without material handlers, a warehouse’s production area would be poorly
stocked and lack the products needed to fulfill orders quickly.

TYPES OF AUTOMATED STORAGE AND

RETRIEVAL SYSTEMS
During the course of the day, a material handler may rely on different types
of automated storage and retrieval systems (AS/RS) to be as efficient and
accurate as possible. Some of the most common types of AS/RS
technology include:

 Shuttles
 Automatic identification and data collection
 Automatic guided vehicles
 Cranes
  Conveyors
 Carousels
 Vertical lift modules (VLMs)
 Hoisting equipment
 Industrial robots
 Lift trucks
 Monorails
 Integrated material handling systems
 Micro and mini loads
 Unit loads

In most cases, AS/RS technology is integrated with warehouse execution

software (WES), warehouse management system software (WMS) or other
controls.

HOW TO MAXIMIZE WAREHOUSE CAPACITY

VIA MATERIAL HANDLERS
By training material handlers properly and providing them with the right
equipment, you can increase productivity, maximize available space and
improve safety throughout your warehouse. To help your material handlers
perform to their fullest potential, first ensure that the aisles in your
warehouse are wide enough for forklift trucks to maneuver safely. You can
also make sure all forklift trucks are equipped with working lights and
horns. Finally, use the right storage systems throughout the warehouse,
including vertical storage solutions, to help increase capacity and lower
carrying costs.

When material handlers change shifts, the arriving employees should

perform a pre-shift equipment check to ensure everything is operating as
required. You should also schedule recommended maintenance regularly
for your AS/RS technology to avoid extended downtime from broken or
failing equipment.

The material handlers and AS/RS technology you employ are essential to
the success of your warehouse operations. Make it a priority to provide
your material handlers with everything necessary to be as productive as
possible. When it comes to maximizing warehouse space without losing
operational efficiency, material handlers make the biggest impact.
• Support for cross-docking
Low Maintenance Warehouse Loading Dock System /
Warehouse Loading Bay / Wholesale Price
What is a warehouse loading dock? What are the purposes and
benefits of using warehouse loading bays?

Warehouse Loading dock, also known as warehouse loading

bay and warehouse dock, generally refers to the loading and
unloading areas of factories, warehouses, logistics centers,
distributions centers etc. The whole set of loading dock
system (dock equipment) includes dock levelers, dock seals,
dock shelters, inflatable dock shelters, sectional doors and
vehicle restraints.

Warehouse loading dock is the ideal solution to ensure

safety, boost the efficiency of loading and unloading process,
protect internal environment and minimize energy
consumption. Therefore, high-quality loading bay equipment is
vital for the safe and efficient handling of goods.

As a leading warehouse dock equipment manufacturer and

specialized logistics entrance solution supplier, Guauma is
committed to making the process of the loading and unloading
safer, more efficient and more sustainable through overall
loading dock design and the most reliable products.
Get a Quote Now

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General Info.

Quick Details
Guauma offers the overall warehouse loading bay solution helping
bring about safety, logistics efficiency and energy saving.
1. Loading Dock Leveler

L oading dock levelers (dock levelers or warehouse dock

levelers) are applied to bridge the gap and height difference
between the truck and the cement platform or warehouse
floor, so that the forklift can directly enter the trailer for
loading and unloading operations. Therefore, Docks levelers
are the best solution to facilitate both efficiency and safety of
loading and unloading. As a specialized manufacturer, Guauma
supplies a full range of dock levelers, such as hydraulic dock
levelers, air-powered dock levelers, vertical dock
levelers, mechanical dock levelers, telescopic dock levelers,
etc. They can be customized according to various
environments and your requirements.
Hydraulic Dock Leveler
Air Powered Dock Leveler
Vertical Dock Leveler

2. Dock Seal/ Dock Shelter/ Inflatable Dock Shelter

D ock seals help isolate the internal and external

environment. It can prevent dust, insects and energy loss by
sealing off the vehicle. We offer various types of dock
seals, dock shelters and inflatable dock seals to meet the
various needs of customers.
Dock Seal
Vertical Dock Leveler
Inflatable Dock Seal

3. Dock Locks/ Vehicle Restraints

D ock locks also refer to vehicle restraints, trailer restraints,

truck restraints, etc. The main function of it is to provide the
highest level of safety throughout the loading and unloading
process via firmly hooking the rear of the trailer to avoid
accidents caused by its movement. Furthermore, equipped
with dock traffic lights enhance communication between truck
drivers and dock operators in a simple and instant way through
obvious signals of red and green lights. It makes the operation
of loading bay safer and more efficient.
 4. Dock Doors/ Sectional Doors

D ock doors are also named sectional doors, lifting doors,

sectional doors, etc. They play the role of security, thermal
insulation and reduction of energy consumption. For more
detailed descriptions and specifications, please click here.
Factory Display

Loading Dock Equipment Manufacturing

Packing & Transportation

 • Sales order return management
Warehouse sales order return management is a critical aspect of the supply chain
and customer service process. Handling returns efficiently ensures customer
satisfaction, inventory accuracy, and effective financial management. Here's a
detailed guide on managing sales order returns in a warehouse:

1. Return Authorization (RA) Process:

 Establish a clear and user-friendly return authorization process.
 Customers should contact customer service to obtain an RA number before
returning any items.
 Provide clear instructions on how to package and label returned items.
2. Clearly Defined Return Policy:
 Communicate your return policy clearly to customers through various
channels, such as the website, order confirmations, and product packaging.
 Include information on return timeframes, conditions, and any associated fees.
3. Automated Returns System:
 Implement an automated system for managing returns to streamline the
process.
 Integrate the returns system with your order management and inventory
systems to maintain accurate records.
4. Return Documentation:
 Require customers to include a return form with details such as the reason for
return, original order number, and RA number.
 Use barcodes or QR codes on return forms for easy scanning and data entry.
5. Receiving and Inspection:
 Designate a specific area in the warehouse for receiving and inspecting
returned items.
 Inspect returned products for damage, completeness, and adherence to the
return authorization.
6. Condition Assessment:
 Categorize returned items based on their condition (e.g., resalable,
refurbishable, or damaged).
 Establish processes for handling different conditions, such as returning to
stock, refurbishing, or disposing of items.
7. Return to Stock (RTS):
 For items in resalable condition, update inventory records and return them to
stock.
 Perform quality checks to ensure returned items meet the required standards
for resale.
8. Refund or Exchange Processing:
 Process refunds promptly according to your return policy.
 If customers prefer exchanges, ensure a seamless process for replacing items
or issuing store credits.
9. Return Analysis:
 Regularly analyze return data to identify trends and patterns.
 Use insights gained from return reasons to address product quality issues or
areas for process improvement.
10. Customer Communication:
 Keep customers informed about the status of their returns through automated
emails or a customer portal.
 Provide transparency on refund processing timelines and any other relevant
information.
11. Continuous Improvement:
 Regularly review and update your return management processes based on
feedback and performance metrics.
 Collaborate with other departments, such as customer service and product
development, to address recurring issues.
12. Training Staff:
 Ensure that warehouse staff is adequately trained on the return management
process, including inspection, categorization, and system updates.
13. Integration with Systems:
 Integrate return management with your warehouse management system
(WMS), enterprise resource planning (ERP) system, and customer relationship
management (CRM) system for seamless data flow.

By implementing a robust and efficient warehouse sales order return management

process, you can enhance customer satisfaction, maintain accurate inventory levels,
and improve overall supply chain efficiency. Regularly reviewing and refining these
processes will contribute to ongoing success.
The sales order process is one of the most vital workflows in any business that sells goods. Get it right and you’ll cut
costs and delight customers. Get it wrong and – unfortunately – the opposite tends to apply. So what is sales order
processing, how does it work, and why should you optimise it?

What is sales order processing?

Sales order processing, also known as sales order management, is the flow of steps from customer ordering through
to product delivery. Sales order processing touches each step of the purchase and order
fulfilment process, including quoting, the financial transaction, order picking and logistics.
Ideally a business should run a smooth sales order management process that ensures customer satisfaction, with few
errors, fast delivery times and minimal time wasted on admin.

Sales orders vs purchase orders and invoices

Sales order processing, and in particular the phrase ‘sales order’, is not to be confused with purchase orders and
invoices:

Sales order vs purchase order

A sales order and purchase order are, in essence, the same thing but going in opposite directions.

A sales order comes from the seller – your business – and is generated to confirm that a sale has been made. It
outlines what goods have been sold, their quantities, payment methods, delivery information and so on.

A purchase order goes in the other direction. It comes from the customer and outlines what they wish to
purchase. For example, a manufacturer may send a purchase order to their supplier outlining what they require. The
supplier would then generate a sales order on the back of that purchase request, once the price has been accepted.

Sales order vs sales invoice

A sales invoice is the final piece of the puzzle, acting as the bill for goods and services. When a price has been
agreed and a sales order issued, an invoice can be generated by the supplier and sent to the buyer outlining the
agreed payment terms. Whether this is before or after receipt of goods is up to the two parties.

The accounting team of each party records both the sales order and sales invoice to ensure that they match – as part
of the reconciliation process.
Achieve optimal eCommerce sales order management with Unleashed + Shopify

Sales order processing steps

The basic steps of sales order processing are usually:

 Receive the order

 Generate a sales order

 Picking, sorting and packing

 Shipping

 Invoicing
A sales order flowchart gives you a top-down view of each step in your sales order pipeline and can be used to
explore inefficiencies in your sales order processes

Example of a typical sales order process flow

Here we break down the individual steps in a typical sales order process workflow, from receiving an order to
invoicing.

Step 1: Receive the order

The first step in any sales order process is order receipt. The customer initiates their purchase order through their
platform of choice, whether that’s over the phone, online, or via your mobile app – we’ll talk more about
multichannel sales processes below.

Sales orders should include:

 Requested products

 Quantities

 Shipping details

If your company has multiple warehouses or fulfilment centres, shipping details are important – they’ll help you
decide which of your warehouses you send the order to.

Step 2: Generate a sales order

For some companies generating a sales order is automatically included in Step 1 – so effectively it’s all one process.

To make this a single step in your sales order process, your stock levels need to be kept up to date and held
electronically in a central database that is integrated with your sales ordering system – also known as an order
management system (OMS).
When your sales ordering system determines that your company has the right goods in stock, it raises its own sales
order and passes the details on to the relevant warehouse managers.

Any company that doesn’t use an automated system has to do this manually – in other words, a staff member
receives the purchase order, checks stock, then raises a sales order.
Companies that use sales order management software can combine receiving purchase orders with generating their
sales order – taking some of the hassle out of the process.

Step 3: Picking, sorting and packing

When an order has been raised and confirmed, it’s over to the warehouse staff to complete the picking, sorting and
packing phases:

 Picking: Warehouse staff pick out the customer’s items so that they can be sorted and delivered. Barcodes and
scanners may be utilised here to speed up data entry, allowing warehouse staff to tell the inventory
 management system that a particular item has been taken off the shelf. Some companies, such as Amazon, are
increasingly using robots to automate the picking process.
 Sorting: Picked goods are organised by purchase and delivery location. Picking is often done in batches or
zones, where multiple customer orders are picked at the same time from one location in the warehouse. In the
sorting phase, these goods are separated into individual customer orders.
 Packing: Finally, orders are packed into appropriate containers, sealed, and labelled for shipping.

What if there isn’t enough stock?

If there isn’t enough stock to fulfil an order, you’ll need to generate a new purchase order for one of your suppliers.

This is where an inventory management system that automatically generates a new purchase order comes in handy.
In other words, the system detects that there isn’t enough stock and raises a purchase order with suppliers on its own
– updating the computer and customer as required.

 Learn more: What is an Inventory Management System?

Step 4: Shipping

The shipping step is where outbound goods are finally transferred to an approved logistics partner who will then
deliver the product to the customer. Depending on what is most cost efficient, or what the customer prefers,
purchased goods may be sent out individually or in bulk.

Collecting everything into one shipment can sometimes increase delivery times as it may take longer to pick and sort
some goods over others – for instance, when stock isn’t immediately available. On the other hand, sending partial
shipments can increase shipping costs and is more complex to manage.

Multiple companies may be involved in this phase. Your business could use a logistics partner to get your goods to a
distribution centre, from where a courier delivers the goods to your customer. Alternatively, a single freight
company could deliver your goods the whole way.
Shipping is one of the last steps in the sales order process, and for this you may use a logistics partner or freight
company

Step 5: Invoicing

If payment wasn’t handled at the sales end of the pipeline an invoice will need to be generated so your company
receives payment.

A basic system can be used where the invoice is paper-based and mailed out with the package itself. Or the invoice
can be generated electronically and emailed to the customer.

Depending on what accounting systems you’re using, you may also be able to use an e-invoice with payment
options built in to the invoice itself – like a Pay Now button that is linked to both your accounting platform and the
customer’s.
Why multichannel sales order management is
important

Most shoppers nowadays – even in the B2B space – want the option to shop online, which means that you’re going
to need a multichannel or omnichannel fulfilment strategy if you want to improve your sales order
process.
‘Omnichannel’ means that your business sells across multiple platforms and devices, and each of these is integrated
into one system. ‘Multichannel’ refers to selling across different platforms, but their systems are separate.

Customers are increasingly looking to make purchases online – which is why a multichannel strategy is so
important. The numbers tell the story:

 In the US online shopping made up 14% of all retail sales in Q4 2020, up 11.3%
year on year
 There were over 230 million online shoppers in the US in 2021 – again, an increase
on years prior
 B2B ecommerce is growing too. It’s expected that 80% of B2B sales will happen
digitally by 2025

Multichannel sales order management

Any company looking to optimise its sales order management will need to think bigger than traditional sales to a
multichannel or – even better – omnichannel strategy.

To optimise for these strategies automation is key, and you’ll be looking to invest in an order and inventory
management system that can eliminate time-consuming manual steps like checking stock levels, inputting data into
spreadsheets, producing invoices either from scratch or a template, and more.

 Learn more: Order Management Software

When each of these processes is automated they become instant, which means staff can be occupied with more
value-adding tasks.
Automating your sales order processes removes time-consuming and tedious tasks for staff – and the risk of human
error

Benefits of optimising sales order process flows

The sales order process involves a number of very important and sometimes complex steps, and so any degree of
optimisation can have huge benefits, including:
  Fewer errors: Automating elements like data entry means there’s less chance of human errors – like typos, or
putting decimals in the wrong place. It also reduces the chance that the wrong items will be put in the wrong
shipment, or get missed entirely.
 Faster order fulfilment: By streamlining each phase of this process you’re making it faster. That means
you’ll pick and ship customer orders more quickly, which cuts costs and delights customers.
 Lower costs: As mentioned, faster fulfilment cuts costs. But it goes beyond that – there’s less chance of errors
being made, so fewer costs related to returns and reshipments.
 Complexity is easier to manage: With a streamlined process – especially a digital or automated one – it can
be easier to manage more complex orders such as partial shipments. This is because calculations, data entry
and order management are done on your behalf. Your teams can get on with what they do best, while the
system keeps track of other tasks like sending reminders or shipping out the second or third batch in a partial
shipment when stock arrives.

5 ways to optimise sales order management

1. Audit your current system

To optimise your processes you’ll need to start with an audit. This can be a revealing exercise – and you won’t know
where you need to go if you don’t know where you are now. If you can’t capture the data you need for this, that is
the first point you’ll need to address.

Your first step is to map out your current sales order process in a flow chart, describe each step, and ask yourself :
Who or what is involved? How long does it take?

From this you can work out the most complex or slowest parts of your pipeline – you’ll look at optimising these
first.
Auditing your sales order management process is the first step to improving it

2. Automate

Automation is about taking tedious and repetitive jobs and letting a computer do them faster and more accurately –
so that staff can focus on more meaningful tasks.

For sales order processing, you could think about automating these actions:

 Receiving purchase orders and checking inventory levels

 Raising sales orders if inventory is confirmed

 Sending purchase orders to suppliers if new stock is required

 Raising a sales invoice to be printed or emailed to the customer

  Sending picking requests to the appropriate warehouse manager

 Updating stock levels based on what items are removed from shelves and scanned

 Organising pickups and estimating shipping costs

 Communicating with the customer at key steps in the process, or when there’s a delay

How do you automate these processes?

To manage these steps you’ll need to use order management software that’s integrated with your inventory
management system. Between these two systems you can handle the sales process, stock count and supplier
requests.

If needed, you can integrate inventory management and order management systems
with an enterprise resource planning (ERP) system to connect with more apps, such as those
for accounting, sales databases, CMS platforms, and so on.
 Learn more: 5 Perks of Automation for Employees

3. Invest in inventory management software

Inventory management is key to optimising almost the entire first half of the sales order workflow.

If you don’t know what stock you have at any given time, or you can’t update this information in real time, you will
always be at risk of stocking out unexpectedly – or overstocking goods that you then can’t sell.

Inventory management software is designed to cover this and more. It allows you to track and manage your stock,
and even generate business intelligence reports so you can see what is profitable in your business and what’s not.

 Learn more: How inventory management software has helped real businesses
Inventory management software deals with some of the core processes involved in sales orders, and is therefore an
essential part of any sales order software system

4. Explore demand forecasting

Demand forecasting builds on inventory management by using a range of data to predict future demand.
Factors like historical sales data, seasonal factors and your own forecasts all combine to help the system calculate
when consumers are going to want particular products, and in what quantity.
From there you’re able to ensure you have stock in the right place, in the right quantity, at the right time – meaning
less risk that you’ll either run out of stock due to unexpected demand, or that you’ll order too much stock when
demand is due to drop.
  Learn more: Advanced Inventory Manager

5. Learn to manage reverse logistics

When you’ve optimised each element of your sales order process, there’s still one part of your system that’s left –
the reverse supply chain.

Reverse logistics is the term for when goods come back up the supply chain, from customer to supplier or
manufacturer. Customer returns are a common example, but unsold goods, end-of-life goods, returned rentals and
delivery failures may all be reasons for goods to come up the supply chain in the reverse direction.

If your business isn’t ready to process returned goods quickly and efficiently, it may lead to some of the same
problems you’ve already worked hard to mitigate – like slow processing, human error, spiralling costs and
dissatisfied customers.

 Learn more: Reverse Logistics: What is it, and Why is it So Important?

What does sales order processing software do?

Finally, to end our guide let’s talk about what order management software can do for your business.
Basically, this software is a cross between a sales database and order control. Generally speaking, sales order
processing software can:

 Track sales orders

 Manage sales orders based on purchase date, delivery date, warehouse location, current status, and whether or
not the order can ship now or if it’s been delayed because you’re waiting for stock

 Generate purchase orders for suppliers off the back of a sales order for the customer if there isn’t enough stock
in-house at the time of purchase

 Reserve stock for future sales, partial orders or specific sales channels

 Send you alerts to let you know about overdue orders

• Enhanced reservation hierarchy

The concept of an enhanced reservation hierarchy in a warehouse refers to an

advanced system for managing and allocating inventory to fulfill customer orders.
This hierarchical structure provides a more sophisticated and dynamic approach to
reservations, allowing for greater flexibility and efficiency in meeting customer
 demands. Here are key components and features associated with an enhanced
reservation hierarchy:

1. Order Prioritization:
 Classify customer orders based on various criteria such as order type,
customer priority, order size, or shipping urgency.
 Assign priorities dynamically, ensuring that more critical or time-sensitive
orders receive preferential treatment.
2. Dynamic Allocation:
 Implement a dynamic allocation system that continuously evaluates inventory
levels and adjusts reservations in real-time.
 Consider factors like product availability, order deadlines, and current demand
to optimize allocation decisions.
3. Multi-Level Reservations:
 Establish multiple levels within the reservation hierarchy to accommodate
different types of orders or customer segments.
 For example, have separate reservations for retail orders, wholesale orders, or
high-priority customers.
4. Inventory Segmentation:
 Segment inventory based on characteristics such as product type, SKU
attributes, or location in the warehouse.
 Create reservations at each level of the hierarchy to allocate inventory
efficiently based on specific criteria.
5. Flexible Reservation Rules:
 Define flexible rules for reservations that can be adjusted based on changing
business needs.
 These rules may include minimum stock thresholds, safety stock levels, or
rules for prioritizing specific product categories.
6. Integration with Demand Forecasting:
 Integrate the enhanced reservation system with demand forecasting tools to
predict future inventory needs.
 Use historical data, market trends, and other factors to proactively allocate
inventory before actual customer orders are received.
7. Real-Time Visibility:
 Provide real-time visibility into reservation status, allowing warehouse
managers to monitor the allocation process.
 Implement dashboards or reporting tools to track reservation metrics and
identify any potential issues.
8. Automation and Machine Learning:
 Leverage automation and machine learning algorithms to optimize reservation
decisions.
 Allow the system to learn from historical data and continuously improve its
ability to allocate inventory effectively.
9. Multi-Warehouse Support:
 If applicable, extend the enhanced reservation hierarchy across multiple
warehouses.
 Coordinate reservations and inventory movements seamlessly between
different warehouse locations.
10. Exception Handling:
 Implement processes for handling exceptions, such as stockouts or
unexpected spikes in demand.
 Define protocols for reallocating inventory or expediting replenishment in
response to unforeseen circumstances.
11. Customer Service Integration:
 Integrate the reservation system with customer service platforms to provide
accurate information to customers regarding order status and fulfillment
timelines.
12. Scalability:
 Ensure that the enhanced reservation hierarchy is scalable to accommodate
growth in order volume, product diversity, or changes in the business model.

Implementing an enhanced reservation hierarchy in a warehouse involves a

combination of advanced technology, strategic planning, and continuous
improvement. This approach helps warehouses optimize inventory allocation,
enhance customer satisfaction, and adapt to dynamic market conditions.

Features of Warehouse Management Systems

Nowadays, even though there is a bunch of small changes you can
implement to optimize the work of your warehouse that would be of value in
the long run, warehouse management is normally carried out with the help
of the warehouse management system (WMS).

Part of the logistics management system we discussed before, WMS is the

software designed to manage, control, and optimize all the processes in a
warehouse -- from receiving and storing goods to billing and creating
reports. In this article, we talk about the main challenges faced by the
supervisors of warehouses, solutions offered by different WMS, and some
of today’s top providers in this industry.

The key warehouse processes

To better understand the issues of warehouse management, let’s take a
brief look at its main processes. The six fundamental warehouse processes
 include receiving, putaway and storage, picking, packing, shipping, and
returns.

Main warehouse processes

Receiving involves control over the delivery to your warehouse of the
correct quantity of the desired product - of the right quality at the right time.
This process can in turn be broken into smaller ones:
 placing a purchase order,
 preparing space in the warehouse,
 unloading (manual or automated),
 verification,
 filling in the database, etc.
At this stage automated dimensioners that capture cargo measurements
can be helpful as are dock schedulers to ensure that an adequate number
of workers are on hand.

Putaway is delivering goods to the optimal place in the warehouse. Here

the correct identification of each SKU (stock keeping unit) and getting it to
the most relevant spot is important. Storage conditions also matter to
ensure the safety of goods and employees. Slotting and space
management techniques as well as overall warehouse design are critical to
streamlining these operations and using space most effectively.

Picking is the process of collecting goods from the storage place according
to the customer’s order. It is thought of as the costliest, most time-
consuming, and most error-prone. Here, mobile scanning devices and
voice systems can save tons of time and reduce errors significantly. It’s
also worth considering adopting one of the picking methodologies, such as
cluster picking, zone picking, wave picking, etc.

Packing is putting the ordered items together, checking their quality, and
getting the product ready for shipment. At this point, it’s important to have
all the necessary data on the order and also the type/amount of packing
material required for each order. Automatic wrappers can also reduce time
spent and packing material used.

Shipping or dispatching is sending goods to the customer and making sure

they are delivered safely and on time. Here, again, proper scheduling, labor
management, and tracking systems are key to satisfying customer
demands.

Returns is something most companies wish would never happen, but

unfortunately, they are also a part of the game, especially for eCommerce.
About 5 to 10 percent of in-store purchases are returned, but that rises to
15 to 40 percent for online purchases, according to David Sobie, cofounder
and CEO of Happy Returns. Obviously, managing returns and refunds is a
hassle and requires special attention. Returned units have to be properly
identified, sorted, and dealt with, whether it is by putting them back on the
shelf, sent to repair, discarded, returned to the manufacturer, etc.

Now that we've described the key processes that happen at the
warehouse, let's talk about how warehouse management software works
and how it matches these processes.

What is a warehouse management

system?
Traditional order management systems (OMS) or enterprise resource
planning (ERP) systems have basic warehousing functionality, but many
companies soon find that they have outgrown their capabilities. So, the
main advantage of the WMS is that it covers other aspects of the supply
chain besides inventory and order management - such as labor
management, financial management, reporting, and more.

Obviously, every business is unique and will have different software

requirements. Let’s take a look at the main modules most WMS platforms
have and the most common problems they help to deal with.
 Relation of warehouse processes and WMS modules

Inventory management
Creating purchase orders. WMS stores all your suppliers’ information in one
place and syncs it to actual inventory levels making it easy to manage
procurements. The product can also be added to the order by simply
scanning the barcode. The orders are then emailed to the supplier right
from the system.

Receiving and Putaway. Scanning devices integrated with WMS optimize

receipt and direct workers to the best location to shelve the product. WMS
may also suggest multiple strategies for slotting and best usage of the
storage space depending on the type and characteristics of goods you deal
with. For example, fast-selling products have to be put in the most
accessible areas; fragile, in those areas where potential for damage will be
minimized; perishables, according to their storage requirements and
expiration date; and so on. Location recommendations are also connected
to the forecasting module and are based on trends and product demand.
 An example of warehouse layout design
Storage and tracking. Location control is the core of warehousing,
especially if you work with completely different types of goods or have to
handle stock for multiple clients. Being able to track the exact location of
every single SKU prevents pilferage and helps optimize further order
processing. If you still have trouble locating goods in your warehouse or
deal with high-value items, consider adding a real-time locating
system (RTLS) to your WMS to enhance the tracking accuracy. Also,
storage conditions are vital for some product categories like perishable
food - WMS keeps track of expiration dates and shelf life and prioritizes
products accordingly.

Stock level control. WMS helps monitor the amount of product in multiple
warehouses, notifying users if the level is too low and needs replenishing.
Automatic reordering can be set up as well to prevent total stock depletion
and overselling. Cycle counting is another great tool for inventory control
and is offered by most WMSs.

Order management
Processing customers’ orders is the key function of any sales-oriented
business. Accuracy and speed are crucial to achieving customer
satisfaction. There are many ways how implementing WMSs can help
improve efficiency and reduce errors on every stage of this complex
process.

Receiving/creating sales orders. If you work with various eCommerce

platforms like Magento or Shopify and marketplaces like Amazon or eBay,
integrating them with your WMS will allow you to manage all the orders
from different channels in one system. Also, since most of the WMS are
cloud-based, orders can be created on the go right from the mobile device,
i.e., at trade shows or sales meetings.

Picking. Picking lists can be a pain to create. WMS will let you sort and
print lists conveniently, e.i., by bin location, order date, SKU, etc. Mobile
devices or voice systems can then guide workers to the exact place where
the product is stored. If multiple items have to be picked, the optimal route
together with the necessary equipment will be suggested to reduce travel
time. Barcode or RFID scanners ensure the accuracy of getting the right
items. Today, big players like Amazon or Alibaba also use robots in their
warehouses and implement other AI technologies.
 Using mobile scanning devices
Packing. The type and amount of packaging are calculated automatically
for every order and optimal packing procedure is suggested (e.i., gift
wrapping). The shipping labels for UPS, FedEx, and USPS (as well as
price tags, logos, BOLs, and other necessary paperwork) can be printed
directly from the system so there is no need to manually enter addresses or
retype tracking numbers. Quality control is also simplified as employees
have the exact information and standards for every item.

Shipping. Rate calculation and real-time parcel tracking are available in

most WMSs. If multiple orders are shipped to the same address, they can
be merged to reduce shipping costs. Features of cross-docking and drop
shipping are also offered by some providers.

Returns. WMS can help streamline this unpleasant process by automating

every step: creating the return, recording the reason, updating stock,
issuing full or partial refunds, and generating reports.

Invoicing. Invoices are created and sent automatically, including individual

discounts and payment options for every customer. Normally multiple
formats are supported, whether it is email, CSV, or EDI.

Overall, organizing your orders in one central system provides

full visibility of the complete history for every order - payment information,
shipping status, staff involved, total time spent, etc. Moreover, giving your
customers access to view and manage their own orders increases their
engagement and trust and encourages future cooperation.

Labor management
When the company is still small and you just have a handful of employees,
managing is easy. Scheduling, payrolls, and performance control can be
done manually and don’t take long. However, it becomes more complicated
as the company grows and the staff becomes more numerous. Most WMSs
offer some kind of a labor management module that can be handy for:

Scheduling. For example, sometimes more people are needed at the docks
to unload the incoming shipping quickly and not let the product overstock
dock areas, and at other times a big order needs to be collected and
packed promptly. Seasonal peaks and valleys also strongly affect labor
demand and allocation. Automated schedulers help plan and forecast the
exact number of people needed by day, zone, and job type according to
your procurement and shipping schedule.
Increasing performance. Tracking KPIs (i.e., the number of items picked,
number of orders packed, travel time, etc.) keeps managers informed,
rewards stronger workers and identifies those not meeting their
requirements or needing additional training. Moreover, workers’
engagement increases due to visibility and access to operational results
and peer comparisons.

Manhattan WMS employee engagement progress screen, source

 Safety control. Unfortunately, since theft is a common problem, installing
cameras and sensors and implementing video surveillance has become a
widespread solution. Integrating a security system with your WMS helps
monitor what exactly is happening in the warehouse by tracking staff
location, identifying license plates of the incoming trucks, limiting access to
certain areas, etc.

Overall cost estimation. Breakdown by process, employee, shift, supervisor,

department, or customer provides full cost visibility and points out which
customers are unprofitable to work with.

Financial management and reporting

Monitoring business performance and sales trends across locations,
customers, and products is mandatory for making informed, data-driven
decisions about future actions and developments. WMS offers numerous
opportunities to track and generate reports concerning every side of your
business:
 Customizable metrics let you assess all the data and know your most
profitable customer, top-selling product, best-performing sales channel,
most efficient worker, peak sales season, etc.
 Automatic balance sheet accounts for revenue, taxes, and the cost of
products sold based on real-time data saves time and minimizes
miscalculations. Many WMSs support multi-currency pricing, different tax
systems, and landed cost management, which is crucial if you operate in
multiple locations.
 Integration with accounting platforms like QuickBooks or Xero is also a
common feature to have all accounting in one place.
 Logiwa WMS integration options
You can learn more about performance monitoring from our inventory
management KPIs post since many of them are related to warehouse operations.

Risk Management and Forecasting

Risk analysis and comprehensive planning are key to successful company
development. Modern software offers solutions to analyze operational data
and create forecasts, taking into account possible risks or actually
disruptions in progress. A demand planning feature ensures that there is no
 overstocking and no products are going to waste as well as preventing
stockouts. Products that are seasonal or selling fast can be tracked and
prioritized. Full visibility and structuring of data helps better understanding
and predicting customer behavior and needs.

Top providers of WMS

Most WMS software providers will offer a basic set of features such as:
 barcode and RFID scanners compatibility,
 providing real-time data streaming,
 inventory location recommendations,
 picking and packing options,
 product tracking,
 warehouse layout planning,
 kitting,
 creating reports,
 billing and invoicing,
 integration with ERP and other software,
 customization opportunities,
 on-Cloud basis, etc.

However, when you do deeper exploration, it turns out that all software
options have specific weaknesses and strengths, no WMS on the market is
absolutely perfect, and different WMS suit different purposes. Providers
can focus on a certain business sector (wholesale, retail, or manufacturing)
or company size (small, medium, or large). Below are descriptions of some
of the top-rated WMS providers.
 WMS providers’ comparison

Fishbowl Warehouse - best value for money

Fishbowl has its primary focus on the balance of usability and affordability.
It offers multiple features for small and midsize companies to help manage
inventory.
 Paper documentation is minimized by using mobile devices for scanning
products, managing stock, and creating invoices.
 You can track inventory movement between multiple locations, get real-
time updates, study sales trends on a warehouse-by-warehouse basis, and
obtain inventory requirement predictions.
 It perfectly integrates with QuickBooks, Xero, Magento, Salesforce, UPS
Ready, and other business solutions. Thus, you don’t have to manually
enter your inventory or any other data into your accounting system.
 Fishbowl has over one hundred report options plus you can request a
custom one.
 It is reported to be very user friendly having a basic interface that is quite
easy to master.

Pricing starts from $4,395 for a one-time fee and depends on the number of
user licenses you need, making it comparatively affordable, considering
that there is no monthly fee.

Fishbowl is not perfect though. For instance, it does not support cross-
 docking and many users reported having a hard time fixing mistakes (no
“undo” button). Also, every custom feature has an additional charge.

Fishbowl Order management interface

Manhattan WMS - best for fast-shipping

Manhattan is a flexible warehouse management solution popular among
3pl operators and is voted the best choice for fast shipping. Created for
medium and enterprise-sized companies, it’s perfectly compatible with
mobile devices and provides lots of fulfillment methods to speed up the flow
of goods and organization data. Besides the expected inventory control and
billing solutions, other features include:
 arranging multi-carrier deliveries, i.e., using multiple logistic providers to
move your goods helpig you choose the fastest or cheapest solution;
 cross-docking support;
 order streaming, which involves synchronizing and prioritizing orders;
 boosting productivity and engaging employees by using gamification
techniques;
 optimizing the warehouse layout for easy picking and packing;
 creating material handling policies and standards to ensure all workers
know the processes and operations with inventory;
 accommodating omnichannel and/or multi-tenant fulfillment;
 appointment scheduling and yard management;
 handling multiple companies with different operating standards and rules
within the same facility; and
 constantly providing managers with overall operational data allowing to
react immediately if needed as well as forecast and plan ahead.

However, since the program is such a large and multi-component one (and
more expensive than most other platforms), it might not be the best option
for smaller businesses. It can also be challenging to implement and master
all the functionality it suggests. Besides, this software might not be as
functionally fulfilling for retail store operations as some of its competitors.
 Manhattan WMS Facility Console

NetSuite WMS (by Oracle) - best for perishables

NetSuite is capable of managing core business processes from a single
system and is well suited for inventory management and production
management. It was voted a great choice for manufacturing and distribution
companies. NetSuite has all necessary features to streamline warehousing
operations and ensure on-time delivery, including:
 a solution for tracking perishables that involves monitoring expiration dates
and shelf lives, and prioritizing specific items;
 compatibility with various scanning devices that direct putaway and picking;
 setting material handling policies;
 real-time monitoring of labor productivity and KPIs through user
dashboards; and
 various customizable tools for financial management - accounting,
reporting, analytics, payments, billing, etc.

Netsuite provides big opportunities for customization, but they are pricey
and at times difficult to implement and maintain (e.i., the payroll module is
not fully integrated into the product but outsourced to a third party). Also,
many users were not happy with the support services and warned about
tricks in the contracts and unexpected price increases.

It can be a comprehensive solution for a midsize or enterprise company to

handle all the scope of ERP and WMS operations. For a small business,
however, the investment, customization, and steep learning curve are not
worthwhile.
 NetSuite Accounts receivable dashboard

QuickBooks Commerce (formerly TradeGecko) - best for

eCommerce
QuickBooks Commerce is a powerful eCommerce platform for multichannel
and wholesale businesses specializing in B2B sales. It offers:
 multiple inventory control and inventory tracking features;
 seamless integration with Amazon, Shopify, WooCommerce, Magento,
ShipStation, etc., and multichannel sales management;
 demand forecasting and purchase order generation;
 invoicing tools with built-in credit card payment options;
 customer insights, reports, and forecasting;
 multiple catalogs and price lists with individual discount options, multiple
currencies support; and
 user-friendly interface.

This product seems to be a great piece of software for modern online

businesses of any size. Most customers are happy with using it, mentioning
only minor drawbacks like inconvenient printing layouts, limited language
choices, or imperfect dropdown menus.
 QuickBooks Commerce sales report interface

3PL Warehouse Manager - best for 3PL companies

3PL Warehouse Manager is a completely cloud-based WMS designed
exclusively for third-party logistics warehouses that helps manage multiple
customers, processes, and billing schedules. Besides automating daily
routine operations, it also:
 enables access to real-time information and provides global visibility of
stock and processes in the warehouse;
 has an easy-to-use, intuitive design;
 provides customized user access security levels, i.e., allows users'
customers to view and manage their orders and inventory on their own;
 has FedEx and UPS integration;
 offers a billing automation module that allows to track operational costs and
all the activities on a per-customer basis;
 links EDI partners to shipping providers and e-commerce platforms,
enabling communication with their network via the cloud; and
 offers appealing price options, especially considering that no hardware or
software is needed.

The provider offers a demo version on the official website and prices are
calculated according to individual company requirements. Training and
support are available according to the options chosen.

While users are generally satisfied with the overall functionality of the
platform, some mentioned poor forecasting options, no cross-docking
solution, and also limited KPI and metrics to assess daily performance and
create full-fledged reports.
 3PL Warehouse Manager Customer management page

What to consider when choosing a

WMS
It is obvious that benefits and savings from the implementation of a WMS
can be significant as they enhance performance and streamline all the
activities in the warehouse to speed up operations and reduce errors.
Companies that are not currently using a WMS solution are likely to see an
ROI (return of investment) within six to twelve months.

In choosing the best WMS provider, you have to be extremely cautious and
detailed, taking into account not only their software capability, functionality,
and price, but also such factors as:

Desired integration options - besides integrating new and legacy software

and technologies you are already using, you might also need to integrate
with various marketplaces, shipping partners, other stores, warehouses,
etc.

Mobile-readiness - this quality involves being accessible, legible, and usable

to visitors across all mobile devices like tablets and smartphones.

Customization options and cost - the adopted software should be capable of

being modified to fit your unique needs.

Flexibility and scalability - the chosen solution must be able to adapt to the
growing needs and requirements related to company development.

UI and time necessary to educate staff and/or change the configuration if

needed.

Capability of handling and managing other areas of operation besides

warehousing itself, e.i. shipping, labor management, finance and reports,
etc.

According to the 2020 MHI Annual Industry Report, 20 percent of supply

chain leaders believe that the digital supply chain is the dominant model
right now and 80 percent say that it will be the industry’s dominant model
within the next five years. So, if you are looking for a perfect time to invest
 into technology and make your warehouse perform with maximum
efficiency - now is that time.

• Warehouse design

Warehouse layout design

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10-min read.

Devising a warehouse's layout is the first step in

designing an installation. While this may seem like a simple
issue, in practice it is difficult to figure out. In this article, it
outlines the main factors that need consideration in the design
process. As well, it shows an example of a warehouse layout
distributed into six differentiated areas, including warehouse
automation.
Generally speaking, warehouse designers have to work with a
space in which certain factors limit the surface area available.
This is why the layout has to be carefully planned. When
deciding on the internal and external layout of a warehouse,
there are three possible scenarios that could necessitate a
different assignment of space: the installation of new
warehouses, the extension of existing facilities and
the reorganisation of those currently operating (even
though the last of these options does not involve
making extremely important decisions that will affect the
development of the business over the medium- to long-term).
Nonetheless, despite the specific circumstances, the general
layout of a facility must cover all these needs:
 Making the most of the available space
 Reducing the handling of goods to a minimum
  Providing easy access to the stored product
 Having the highest rotation ratio possible
 Offering maximum flexibility in the positioning of
products
 Controlling the amounts stored
To achieve these objectives, the first step is to create
a warehouse layout, where the design of the warehouse is
represented in the form of a plan.
First and foremost, the created layout must respect the basic
rules of good storage mentioned above and avoid areas and
points of congestion, facilitate maintenance tasks and
establish the resources required to obtain the greatest possible
workflows, with the associated reduction in runtimes.
The following areas must be perfectly defined when designing
a layout:
A. Loading and unloading areas
B. Reception area
C. Storage area
D. Picking area
E. Dispatch area
An example of a layout that includes all of these areas is
shown below:
Loading and unloading areas (A)
Loading and unloading areas, which are normally located
outside the warehouse or incorporated into it, are those
that trucks and vehicles transporting and distributing goods
have direct access to.
In a well-organised warehouse, it is useful to separate these
activities from the rest of the installation, allowing sufficient
space for loading and unloading. This area can be integrated
into the warehouse or be independent.

Dock with platform attached to a warehouse.

Loading and unloading areas integrated into the

warehouse
If loading and unloading areas are built directly into the sides
of the warehouse so that goods are deposited and collected
without the need for any detours, it is said that they
are integrated into the facility. The main advantage of this
is the greater load handling speed, which means it is
preferable to non-integrated options if there is sufficient space
for it.
Trucks are connected to the warehouse via the docks and
these docks can be:
 Docks separated by an intermediate
platform: They are appropriate when this separation is
advisable as determined by the nature of the goods or
the need to maintain the internal warehouse
environment or when there are safety issues relating to
the material stored. A typical example of applying this
type of separated dock is for cold chambers, where
 cold loss could occur if a flush dock is used with an
access door and where this must be avoided at all costs.
Yet there are many other circumstances in which this
design is preferable, particularly when the safety of the
warehouse could be compromised.
 Flush docks: They allow trucks to back right up to the
warehouse wall. To avoid affecting the internal
environment of the facility, access doors must have, as a
minimum, a hermetically sealed system. This seal can be
metal or created through the use of a dock shelter.

Docks with direct access to the inside of the warehouse

Access points with metal seals have a manual or automated

system that operates a flat barrier that can be fixed, folding, or
rolling (as shown below). It opens when the lorry backs up to
the building, and closes when the vehicle has finished the
operation. The internal environment can be more effectively
preserved if the closing system is automated.
In addition to a metal seal, doors with inflatable shelters have
a tunnel that encircles the lorry when it is connected to the
entrance, so that the internal environment is less compromised
by conditions outside.

Door with an inflatable shelter. Sectional door.

When this type of loading area is created, the warehouse floor

should be above the level where the lorry drives. Loading and
unloading areas can also be designed in which lorry are driven
into a pit. However, movement and operations are faster if the
warehouse is at a higher level instead.
The necessary height difference can be achieved in several
ways; therefore, it is not vital for the warehouse floor to be
above ground level. Instead, for example, the area where
lorries drive can be at a lower level, creating a gradual descent
that avoids the steep ramps which, ultimately,
make manoeuvre more difficult and slow down movement.

View of a dock in a pit.

Two different scenarios need to be considered when

determining how to achieve this height difference. The first is
when lorries accessing the loading and unloading areas are
owned by the company. The second is when the lorries used
are owned by third parties.
If only the company’s own lorries are going to use the loading
and unloading areas, and the height of the trailer is exactly the
same in each case, the difference in level can be established
precisely and no further considerations are required.
However, if the lorries that are going to access these areas are
owned by third parties and come from different sources, they
will have different trailer heights. So, a system must be
created that allows the difference in height to be adjusted.
 Pallet truck.

In general, an adjustable leveler system is essential because

even when the company uses its own fleet, which in theory
means there is no variation in the height difference between
the vehicles and the dock. In practice, this difference is always
present.
One of the reasons for this is the suspension in the lorries give
way over time, either because different loads cause the height
of the truck to vary or, more commonly, because
eventually the company is obliged to purchase or lease other
types of transport. Ultimately, a difference in trailer heights is
practically inevitable.
Mechanical or hydraulic devices can be used to deal with
these height differences. Mechanical devices are based on the
use of (usually metal) bridges or walkways fitted manually
between the dock and the lorry.These elements are used so
that forklifts, stacker cranes, and any other mechanical
devices used to load and unload vehicles can enter and exit
the vehicle.
Another option is to use the second system mentioned above,
which consists of a metal platform with one or more hydraulic
cylinders. This platform facilitates access by acting as a
ramp,when integrated into the dock itself, or by raising and
lowering the truck. The image illustrates the second option,
with the platform integrated into the dock.

Single platform.

Independent loading and unloading areas

Located away from the warehouse, but within the surrounding
area, they operate completely independently of the warehouse
itself. They normally consist of a large flat area that the
lorries have direct access to, with the lorries positioned so that
they can be loaded or unloaded using forklift trucks.
This option is best used in warehouses where only one of the
two functions is carried out, i.e. where goods are loaded or
unloaded. This option can achieve the necessary handling
speed, as there is no need for the vehicles to back up to the
building. So, the time spent positioning them is reduced. In
addition, with this option the process of loading and unloading
goods is totally independent of the work cycle of the
warehouse.
In these areas, goods in the lorries can be handled through the
side or the rear of the vehicle. If using the side of the vehicle,
forklift trucks are used to handle the goods, as shown in the
image below.

Forklift handling the goods from the side.

If, however, the operation is carried out using the rear of the
vehicle as shown above, there are two different options. The
first is to access the lorry using forklift trucks and
ramps, which are normally made from metal and connected
to the lorry either manually or mechanically. While there is a
wide choice of such products available on the market, at the
moment two are most commonly used: modular ramps and
those connected to the unloading docks.
 Ramp access.

Modular ramps are metal structures with a non-slip surface

which can either be fixed (when using vehicles of all the same
height) or mobile (when using vehicles of different heights).
Ramps connected to the unloading docks are made with a
brick or concrete structure, which can also be fixed or variable
in height. If variable, their construction is similar to that of the
integrated loading and unloading docks described previously.
The second option for the loading or unloading trucks by the
rear is to use roller conveyors. With this system there is
no need for the forklift to enter the trailer to carry out the
operations. Instead, rails are installed which allow goods to
slide along the inside of the lorry. Movement is generated by
pushing a few loads against other ones.
 Automated loading using sliding elements.

The loading process starts by placing one or more units at the

entrance to the vehicle, which are then pushed in by a second
group that takes the place previously occupied by the first
group. In this way the loads accumulate, one after another,
until the trailer of the lorry has been filled.

Reception area (B)

The reception area must be located as independently as
possible from the rest of the warehouse, so that it can be used
not just for receiving goods, but also for quality-control and
sorting.
 Reception area.

Once it has been ensured that the characteristics and quality of

the delivery received matches those of the products ordered,
the next stage is to determine where to position the load
within the warehouse.
Depending on the type of warehouse, it may or may not be
necessary to transform the units received. If this is necessary,
a suitable area must be established for this function. For
example, it may be necessary to split the pallets that have
arrived into smaller units, remove parts that are strapped
together, etc.
Given the impact that accurate checking and, above all,
correct positioning, can have on the future performance of the
warehouse, this area must be as large and as separate as
possible.
Currently, almost all products handled in a warehouse come
with bar codes that can be read using a scanner. Therefore,
once the warehouse’s central computer has identified the
units, it can in turn immediately generate the position label for
the goods. This label can subsequently be read by a
forklift operator or by the scanners of the warehouse’s
automated system so that, in both of these cases, they can be
positioned in the correct location.

The RF device reads the coded information on the pallet.

Storage area (C)

A storage area is, strictly speaking, an area used only to store
goods.
Goods can be stored in a number of different ways: directly
on the ground; directly on the ground but stacked or
in blocks; or on racking units. The choice of one or the
other will depend above all on the type of product to be
stored, whether it can be stacked, and on the storage quantity
and time.
Storage in stacks involves placing unit loads on top of each
other without anything in between them, other than the pallets
that support them. This method has the advantage of making
better use of space, given that it does not generate unused
positions. However, not all materials can be stored like this
and it must be remembered that even goods that can be
stacked have their limits in terms of strength and, therefore,
have a maximum stacking height. The main disadvantage of
this system is that it does not allow for access to the loads, and
a load can only be accessed by first removing all the loads on
top of it.
The use of stacking is mainly limited to two types of load:
those with great internal strength, and those in rigid
packaging. Goods with great internal strength, such as
ceramic bricks, concrete blocks, etc., can be stored directly, at
times even without the need for pallets or other support
systems. Other goods, such as feed, cements, and aggregates
in general, which are stored in sacks, can also be stored in this
way thanks to their resistance to compression, although pallets
or other support systems are required for their proper
handling.
 Rigid packaging, such as cardboard, wooden or plastic
boxes, can be stacked in this way without problems,
although the rigidity and resistance of these packages
will determine the number of units that can be stacked,
and therefore the height of the stack.
 Racking units must be used when unit loads are not
strong enough to be stacked to the required height, or
when there is a greater need to access the product.
Goods are stored on racking units by placing them on metal
structures, which are basically made up of suitable braced
frames and beams. These elements create a multi-cellular
structure that generates slots into which unit loads can be
placed. As seen in "Storage systems" article, the configuration and
layout of these spaces (or compartments) can vary to suit
different operations and different needs in terms of the
accessibility and accumulation of the load.

Warehouse of a distribution company.

Order picking areas (D)

These areas are not required in all warehouses, only when
outgoing goods must have a configuration or composition that
is different to the one they entered with, or when they require
any type of modification.
Areas for preparing orders can be integrated into storage
areas, as is the case when picking from rack units. They can
also be separate from storage areas, creating specific picking
areas, generally with automated or semi-automated systems.

The image shows an order picking area in a warehouse for faucets and bathroom accessories.

Dispatch areas (E)

These areas are used for packing orders prepared in the
previously described areas. Even if this packing operation is
unnecessary, this area also can be used for goods that have to
be dispatched and loaded into the delivery or distribution
vehicles.
To ensure the correct speed of movement within the
warehouse, these spaces must be designed in a specific
location and differentiated from the rest of the installation.
If separate reception and dispatch areas have been created,
these must also have separate loading and unloading areas. If,
however, the reception and dispatch are close to each other, a
single loading and unloading space can be created. However,
this option makes it more difficult to control the flow of goods
and the movement of vehicles.
 Warehouse of a distribution company.

Service areas (F)

Part of the warehouse must be assigned to support activities at
the facility, such as general and management offices,
changing rooms, bathrooms, and the area for recharging the
batteries of handling devices.
The ideal solution is for the management office to be located
in the reception and dispatch area and, if possible, between
these two areas. This provides greater operability and
efficiency in the work of the personnel in this department.
Changing rooms, bathrooms, and general offices can be
located anywhere in the warehouse, although it is more logical
to locate these close to the control offices. A good solution for
bringing together these resources is to construct a mezzanine
over the reception and dispatch area, and to locate these
functions there.
Lastly, the space for recharging the batteries used by handling
devices must be isolated and well ventilated, to improve
health and safety and avoid any incidents involving operations
taking place in this area.
Next >

• Inventory tracking

Warehouse design
Warehouse design must include the organization and
distribution of space into different operational zones
and storage rack areas. Generally, a central warehouse must
consist of six sections: reception, quality control, adaptation
of unit loads, storage, order preparation and dispatches.
Usually, these six sections or departments can be grouped
together into three
areas: reception, storage and dispatches. These are
explained below.

Reception area
This area covers the receipt of goods, quality control and,
where required due to the nature of the product or goods,
the adaptation of unit loads.
The reception area must be adjacent to the unloading
docks, and of an appropriate size to manage all goods that
could arrive in the warehouse during a normal working day. If
possible, there should be an additional area large enough to
deal with any possible unscheduled increases in goods
received.
If it is necessary to adapt received unit loads, the surface area
must be increased and the resources required to carry out this
task must be made available. This includes having the
necessary personnel, suitable working benches and tools,
reserving part of the storage space for empty packages and
having a system to remove the original packaging.

Warehouse designed for an express transport and distribution business

Central warehouse for food product distribution

Storage area
The design of the storage area will depend on whether or not
orders will be prepared in the installation and whether this
preparation will take place at the racking bays.
In a central warehouse, this area can be made up of one or
more sections. Since the objective of this article is to provide
the reader with as much information as possible about the
different options, here it considers, for example, an
installation that receives various types of products, in different
quantities, with a number of different rotation ratios and with
complicated storage requirements.

To design a warehouse with these characteristics, the first step

is to study the products’ rotation ratios, sorting them into
three categories: low-, medium-, and high-rotation. The
determination of these three categories is, of course, very
subjective. Nonetheless, it can and must be determined by
creating an average ratio as the point of reference. Products
with a ratio close to this will be classified as medium-rotation.
Those with much lower figures will be classified as low-
rotation, while those with much higher figures will be
classified as high-rotation.
Once the products, their volumes, and their corresponding
rotations have been established, the next step is to position
them inside the warehouse. In doing so, three factors must be
taken into account:
1. Firstly, low-rotation goods are generally those
consumed in small quantities and, as a result, they
normally need less storage space.
2. Secondly, medium-rotation SKUs are normally picked
regularly and in moderate quantities (in other words,
they are requested in average and regular batches). As a
result, they need an exit speed which is neither very
fast nor very slow, and must be easily accessible.
3. Finally, high-rotation goods are normally requested
often and are in excessive demand (so the situation is
normally one of medium-to-large batches requested
very frequently). For high-rotation products, the most
important thing is to ensure they are
highly accessible and are picked quickly.
Thus, a central warehouse with these characteristics could
include:
- Block storage or a compact storage area, used for
high-rotation products where volume is more important than
accessibility or picking speeds. Based on the quantity of the
product and capacity available, it is possible to use a
configuration in blocks or any of the compact storage systems.
- An area with racking units which, based on the quantity of
high-rotation products that exist, can be just storage (where
the load is only positioned) or mixed, with picking racking
units built in.
If it is purely storage, there are a number of options in terms
of handling equipment to use, including conventional
forklifts (which need 11.5' to 13' wide aisles), reach
trucks (aisles must be 8' to 10' wide), VNA trucks (aisles
5.6' to 7.2' wide) and stacker cranes (aisles of less than
5.6'). The choice of handling equipment is not determined
simply on the basis of the space required between racking
units, but also, fundamentally, on the relationship between the
storage volume required and that available. It is also
essential to take into account the different lifting height limits
of each type of machine (see "Forklift equipment").
Sketch of the different sections in a central warehouse

Another very important factor is the investment required if

adopting one system or another. The more sophisticated the
handling equipment used, the greater the cost. Similarly, one
must not forget the return on investment, since the
most sophisticated systems, with a largest initial cost, can be
the fastest to generate a positive return on investment (ROI).
On the other hand, if the number of products with a high
rotation is very significant, a mixed storage area can be useful.
Given that the fastest picking is normally carried out at the
lowest possible height, while the most profitable storage is at
the greatest possible height, it is useful to design a
configuration of racking units with the preparation of small
pieces at medium height (and storage in the rest), or to install
automated systems.
Dispatch area
This area contains both the order preparation
department (with orders prepared on the ground or
from racking units) and the dispatch department.
This is the area that must be used for the preparation and,
where necessary, the packaging of orders received from the
rest of the warehouses in the chain. To this end, it must have
the right resources and no expense must be spared on these
resources under any circumstances, since this is the part of the
warehouse that has the greatest bearing on the company’s
public image and reputation. If the preliminary
preparation of orders is carried out on the racks, this
simplifies the work of this area significantly.
In any event, order preparation personnel must report to the
dispatch department, since it will be responsible for regulating
their activities in response to external demand.
Order consolidation in the dispatch area

In terms of operation, if the warehouse has a management

system and this has been programmed correctly, the task of
preparing orders is limited to placing the products in batches
in an area set aside for that purpose.
 Orders classified by customer or route

This space reserved for the load must be sufficient to store all
items being dispatched on a normal work day. However, it is
both useful and necessary to plan an expansion area that can
absorb unscheduled peaks in demand. This outbound
dispatch area must be as close as possible to the loading
docks.
When orders are prepared in a separate area (particularly for
picking or individual boxes), an appropriate consolidation
area is required. Sorting conveyors that distribute the picked
units by order or route can be added nearby.

Buffer zone with completed orders in dispatch area with automatic sorting
 Other alternatives to conveyors for taking consolidated loads
to the dispatch area are pallet trucks, forklifts, and auto-
guided vehicles (AGV and LGV). The above image shows an
example of the use of laser-guided vehicles. These LGVs
leave the pallets on five tables with rollers, from where they
are collected by a shuttle which, in turn, deposits the loads in
one of the various disbursement lines fitted with accumulating
conveyors.
 Warehouse layout design
The layout of a warehouse must establish the following areas: loading and
unloading, reception, storage, order preparation, dispatch and services.

 Warehouse material flows and flow charts

A warehouse regulates the incoming and outgoing flows of materials. How complex it
may be depends on each business, if product turnovers are high, medium or low,
etc.

 Why warehouse flooring is important

When paving the floor of a warehouse the loads it must withstand, its composition,
joints, and the substrate it will be supported by, etc. must be kept in mind.

 Flatness and levelness of warehouse floors

A high degree of floor planimetry is crucial in warehouses to prevent handling
equipment from breakdown and damage to the rack bays.

 Designing warehouse access points

Properly designed warehouse access points decreases the risk of interference
between vehicles in operation and personnel on foot.

 Factors that influence access point placement

Applying the "just-in-time" concept and using large sized trucks affect the design of
warehouse cladding.
 Warehouse docking areas
Multiple factors determine the number and distribution of loading docks in each
warehouse installation, which are either technical, esthetic or organizational in
nature.

 Forklift aisle width and height

The technical features of forklift equipment must be kept in mind (height, width, etc.),
to properly design an installation.

 Pallet racking clearances

Racks must fulfill certain clearances to avoid blows from machinery and to place the
load correctly in the locations.

 The exterior of rack-supported warehouses

What are the most used cladding and roofing for rack-supported warehouses?

 Planning a warehouse
Facts like the available space, the customer's needs and resources, among others,
are the main data that are collected when planning out a warehouse.

• Receiving and put-away

Warehouse putaway process: How

does it enhance inventory
management?
20 Sep, 2022 | Uncategorized
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Putaway is a significant process in warehouse management that starts with receiving the
supply of goods from the vendor, then checking the quality of the goods and finally,
appropriately storing the stock in the warehouse.
If you put away the goods on the same day you receive them from your vendors, you can
avoid many drawbacks like a chaotic warehouse, misplaced products, and damaged stock.
Moreover, putaway ensures the safety of goods, equipment, and warehouse technicians.
This blog will walk you through the putaway process, best putaway strategies, and how good
putaway management can benefit your business. Let’s get started.

Putaway process in the warehouse

When we imagine a warehouse, we can easily see a vast space with forklift operators loading
and unloading goods, verifying the goods for quality, and arranging carton boxes on racks..

Now, let’s imagine five trucks with tons of diverse materials waiting to be unloaded at the
warehouse entrance. The received goods are of wide varieties, sizes, and weights. How do
warehouse managers store the items they just received? This is the process of putaway, and
warehouses practice specific putaway strategies for optimal management of inventory.

Often, the warehouse puts away items based on (i) purchase orders, (ii) SKUs, or (iii)
product types. We discuss these in more detail in later sections of the blog. Now, let’s see
how you can automate the warehouse management activities, including the putaway process.

Warehouse management is not challenging and time-consuming anymore. A warehouse

management system (WMS) automates the entire warehouse operations, freeing the
employees from repetitive manual tasks.
Here are some of the salient features of the DEAR WMS that can help you optimize your
putaway process:
 Wireless scanning: You can scan the received material and apply barcode labels (if required)
upon unloading.
 Guided walk paths: Guided walk paths allow your warehouse team to finish things on time by
finding the ideal route for both the putaway and the picking process.
 Real-time visibility: The system is transparent and aids visibility into your inventory quantities
and location at all times.
 Serial and lot numbers: With the versatile SKU mobile scanner, you can effectively organize and
monitor goods internally.
 Streamline your putaway processes: The DEAR WMS application provides a directed putaway
function, enabling users to walk through the warehouse and point them to the exact location for
the received goods. Users can automatically assign bins to the items and move items between
bins. With DEAR WMS, you know the whereabouts of your goods at all times.
 Minimize errors and save time: You can’t afford any mistakes in warehouse management. With
DEAR WMS, you can minimize errors in your warehouse activities, including receiving,
putaway, and pick/pack processes.
With DEAR WMS, you can ensure the quality, quantity, and safety of your inventories,
equipment, and employees in the warehouse.

Warehouse putaway strategy

Once you receive the supply from the vendors and complete the quality checks, you will
start putting away the items in their allotted spaces.

Rather than putting away stock randomly, you need to define strategies for your putaway
process. With an appropriate putaway strategy in place, your business can enjoy the
following benefits:

 You can be sure about the details of every item in the warehouse.
 You can maintain an organized warehouse without worrying about misplaced or lost goods.
 You can speed up the order fulfillment process as your warehouse team knows the precise
location of every product.
 You can avoid stockouts as your team knows when the stock is running low and can replenish
the items on time.
 You get to use the storage space effectively.
The major putaway strategies that we commonly encounter in warehouses are

1. Putaway based on purchase orders

Often businesses buy several products from various buyers and stack them in their
warehouses. No matter how many vendors you deal with, you can put away items based on
your purchase orders . All you need to do is analyze the purchase order and start stacking the
goods accordingly. The significant benefit of putting away stocks based on the purchase
order is there will be no room for mistakes as you will simultaneously check for every item
to group them.
2. Putaway based on product type

In putaway based on product type, you put away products based on the product’s size, how
often people purchase those products, or some other characteristic. For instance, if
customers rarely buy a specific product, you can stack it on top of the rack, or if you receive
products with limited shelf life, you can stack them separately. Thus, you can quickly
identify such products without searching when customers order them. The ideal benefit of
putting away products based on product type is that you can effectively utilize your
warehouse’s storage space.

3. Putaway based on SKU

Stock keeping unit (SKU) is a unique code that comes with a product, displaying the
product’s brand, manufacturer, color, size, and style. SKUs enable you to arrange
inventories in the warehouse. By putting away items that have similar SKUs, you can
quickly find the things when in need. Warehouses prefer SKU-based putaway when they
hold large quantities of products sharing similar SKUs.

4. Direct putaway

Unlike other putaway methods, the direct putaway method eliminates the receiving stage in
the warehouse so that items are immediately putaway in the allotted space. Warehouses
follow this putaway strategy if all the received goods are for the same customer or if the
goods are a part of a specific warehouse area. The prime advantage of the direct putaway
method is it doesn’t involve much sorting and handling of products, reducing product
damage significantly.

Invest in warehouse management system (WMS) to

optimize your putaway process
Now you know putaway is a mandatory and important warehouse process. A reliable WMS
can help you automate your entire warehouse management, including putaway, picking, and
packing. In short, the WMS streamlines your warehouse processes, allowing you to boost
sales and maximize profits.

Here is how a WMS can help you in optimizing your putaway process:

1. Real-time data insights

Data is crucial for any business to predict trends, identify opportunities, understand
consumer behavior and stand out from competitors. However, many warehouses still have a
gap and don’t have sufficient data at the right time. Undoubtedly, warehouse management
demands a lot of critical data like order volume, storage availability, shipping frequency,
and vendor details. A WMS provides accurate data that you can analyze to put away
inventories.

2. Keep track of your stock at all times

Today’s warehouses use both fixed and dynamic locations to store inventory efficiently.
Dynamic locations allow you to place items in the first available temporary location without
demanding you to pre-plan locations for every item. Though dynamic locations make
putaway an easy process, you would need a robust WMS to track your inventory locations
quickly.

3. Save time and reduce errors

Any business cannot afford mismanagement in warehouses. Picking and packing the orders
for shipping as soon as you receive orders is crucial. DEAR’s WMS provides multiple
features to enhance your warehouse management. DEAR communicates in real-time with
your backend, reducing order receiving errors. The handheld Scan SKU mobile barcode
scanner verifies orders, creates item labels, and captures product numbers while alerting the
users upon discrepancies.

4. Updated inventory information at your fingertips

A cloud-based WMS offers real-time inventory information at all times. For instance, you
can check the available stock while processing orders. In fact, you can even set the system to
replenish the inventory when it goes below specific counts. Thus, a WMS can automate all
the warehouse activities and allow you to focus more on your business growth and customer
satisfaction.

How can DEAR WMS help you optimize warehouse

and inventory management?
DEAR WMS seamlessly integrates with DEAR inventory, enabling you to speed up the
warehouse processes cost-effectively. With DEAR WMS, you can automate warehouse tasks
like receiving, putting away, stocktaking, stock transfer, picking, packing, and printing
product labels.
Book a free, one-on-one consultation call with our specialist today and accelerate your
business growth with DEAR systems’ warehouse management software.

• Picking and packing goods

 Introduction to warehouse pick and
pack
Warehouse picking and packing are key processes used to fulfill customer’s orders, each
one impacting the time an order spends in a warehouse.

Researchers and warehouse operators have been working on improving order picking for a
long time, because it not only accounts for about 55% of warehouse operating costs
(source ), but it can also have a significant and direct impact on customer satisfaction.

With customers’ expectations of fast delivery time increasing, 3PLs and warehouse
operators need to be constantly evolving their pick and pack processes to ensure they are
keeping up with the competition.

In this guide, we’ll cover:

 What is picking and packing?

 Why is pick and pack process efficiency important?
 What is the pick and pack process?
 Different pick and pack methods
 Warehouse picking and packing best practice
 The future of pick and pack
 Frequently asked questions

What is picking and packing?

Picking and packing is the process of selecting and packaging products in a warehouse.
This includes ‘picking’ the right type and number of products from inventory and ‘packing’
them for shipment. Pick and pack is often the most costly and time-consuming process
found in a typical warehouse.

For a pick and pack system to be effective, warehouse operations must be tightly organised
and human error must be reduced to a minimum. To support pick and pack workers, modern
warehouses will often utilise automation and different warehouse technologies that increase
efficiency.

Why is pick and pack process

efficiency important?
There is a growing demand for rapid online shopping, which includes same-day delivery,
with the ability to place an order at any hour, alongside the flexibility to cancel or change a
delivery. The unpredictable nature of customer orders means that warehouses need to be
efficient, flexible and responsive during their pick and pack process to reduce order
completion time and keep customers happy.
Picking and packing is also time and cost-intensive, where some articles have even
reported that picking accounts for as much as 60-70% of warehousing costs ( source ), up
from the previously reported 55%. By streamlining the pick and pack process, warehouses
can benefit from significantly reduced costs and mispicks, which is crucial when trying to
keep up with competitors.

What is the pick and pack process?

1. Receiving

The pick and pack process starts when a customer places an order. The order information is
sent from the ecommerce platform to the warehouse management system , and a digital or
physical packing slip is generated.

2. Picking

A warehouse picker will then pick the correct items from the warehouse shelves using the
packing slip. Picking is the most time-intensive part of the process and efficiency here is
absolutely crucial for warehouse management. Different warehouses will use different
picking methods, depending on inventory storage, order volume and other factors.

3. Packing
The order will then be packed into a suitable container for shipping, such as a box or bag. At
this stage, orders should be verified to ensure they are correct, and packaging should be
checked for damage. A shipping label will be printed and added to the box.

4. Shipping

Finally, the package is then prepared for shipping and organised, ready for collection from
the carriers.

Different pick and pack

methods
The type of warehouse picking and packing method you use will depend on the products
you are storing, sales volume for the business, and the amount of space you have available.
For most warehouses, it will likely fall under one of these 4 methods:

1. Piece Picking

Piece picking is the process of picking, packing and shipping one singular order at a time.
It’s very simple, so it’s perfect for small retailers who are just starting out. As it’s heavily
time-intensive, larger retailers, or those looking to scale, should opt for a more complex
method.

2. Batch Picking

Batch picking, or multi-order picking, is the process of picking multiple orders at once. This
method is ideal for businesses who are starting to experience a higher volume of orders and
need to save time in the picking process.

3PLs and warehouse operators should be starting to consider software solutions that can
help teams manage the process effectively.

3. Zone Picking

Zone picking is a method where warehouse pickers only pick items from a specific zone
they are assigned to. A packing slip will move through multiple zones, where the order is
gradually picked until it is complete and ready to be passed over to the packing station.

This method is most suitable for retailers who ship a high volume of orders. With the
complexities of zone picking, warehouse management software is recommended to avoid
costly mistakes and help pickers manage orders efficiently.

4. Wave Picking

Wave picking, or cluster picking, is the method of picking multiple orders across different
zones at the same time. Usually coordinated by warehouse management software, the
system will identify similar clusters of orders and release them at the same time for picking.
Warehouse pickers will then work in their zones to pick the correct items, before
consolidating the orders at the packing station.

Due to the complexity and organisation required for wave picking, this method is best for
large retailers with a high volume of orders, supported by warehouse management software.

Warehouse picking and

packing best practice
 Below we’ve listed four tried and tested solutions that will help improve the picking and
packing process for any retailer, 3PL, or warehouse operator:

1. Plan picking routes to save time

Research has shown that travelling during the picking process takes up 55% of the
complete order-picking time. To reduce order completion time, warehouses need to plan out
the most efficient picking routes possible.

When planning a picking route, take into consideration:

 The size of the warehouse will dictate the number of picking routes required.
 The layout of the warehouse will dictate the most efficient route for the pickers to take.
 The type of products being stored in the warehouse will dictate the order in which the
products are picked.
 The volume of products being stored in the warehouse will dictate the number of products
that need to be picked per route.

2. Choose an effective inventory storage

strategy
To improve picking and packing speed, make sure to consider how you are storing inventory
across the warehouse.

Consider options such as volume inventory management, where products with the highest
turnover are stored nearest to the packing station. The more popular the product, the
quicker a picker can reach the stock, helping to reduce time spent picking.

An inventory management system is often used by warehouses to help further improve the
picking and packing workflow.

3. Use barcode scanning to avoid errors

Picking is a labour-intensive process which can often result in mispicks, leading to costly
errors and unhappy customers.

Mobile barcode scanning significantly improves picking accuracy, helping to reduce errors
and costly mistakes. Barcode scanning software can also help suggest optimal picking
routes for each individual warehouse worker.

This is an example of automated warehouse technology which is becoming increasingly

common amongst modern warehouses. Warehouses need to consider investing in barcode
scanning, otherwise it’s likely they will be left behind when competitors offer faster and more
efficient fulfillment.
 4. Increase efficiency with a WMS
For a warehouse to perform at its best, a warehouse management system (WMS) is strongly
recommended. By using cloud-based warehouse management software, warehouses can
benefit from automated workflows, optimised stock control and advanced location
management.

With these features in place, the picking and packing process can be supported by
automation and streamlined workflows. A WMS can also help warehouses as they grow and
scale, ensuring a growing volume of sales and increasingly complex orders are processed
with ease.

The future of picking and

packing
As technology evolves and automation continues to improve warehouse operations,
warehouses will need to turn to advanced methods to ensure their picking and packing
process is as efficient as possible. This is especially true when giants, such as Amazon, are
constantly finding ways to speed up order completion.

From mobile barcode scanning to cloud-based warehouse management software, Mintsoft

offers a range of software solutions to ensure you are meeting, and exceeding, best
practice.

To transform your warehouse picking and packing, learn more about our warehouse
management software or book a 1-1 demo today.
What is warehouse picking?
Warehouse picking is a process that involves locating and gathering items from a
warehouse. This can be done manually or with the help of automated systems.
What is a picking list?
A picking list is the piece of information that is sent to warehouse pickers after a customer
has made an order. It will include a list of products and items which need to be picked, the
location of these products, the picking route and the shipping data.
What is warehouse packing?
Warehouse packing is the process of packing the items of an order after they have been
picked. Warehouse packers need to select the correct packaging, weigh the materials and
ensure the package is labelled with the correct shipping label.
How can you improve picking and packing?
Ultimately, to improve the picking and packing process, you should:

 Plan optimal picking routes to reduce travelling time

 Use automation and technology to reduce mispicks
 Store inventory strategically so that popular items are placed near the packing station
 Implement a WMS to ensure all processes are working together efficiently
What are the three main picking systems?
The three main picking systems include batch picking, zone picking and wave picking.
Depending on their requirements, warehouses may use a combination of one or more of
these systems.

• Shipping

WAREHOUSE SHIPPING
OPERATIONS 101
Shipping is one of the most important processes handled by a warehouse
because it moves a product from a client to a customer. While it might
seem like a straightforward process, shipping is actually a complex series
of steps that need to be performed perfectly to ensure orders get to where
they need to be on time, in good condition and according to the client’s
wants and needs.

This guide offers an understanding of the shipping process steps and some
common issues that warehouses must consider in shipping operations.
PREPARING WAREHOUSE SHIPMENTS
Before a product can be shipped, several things need to be addressed.
Most important is determining the type of shipping materials best suited for
the shipment. Knowing what you will ship in advance is crucial in order to
have the appropriate shipping materials on hand.

When it comes to preparing a shipment, there’s a big difference between

shipping something in a box, in an envelope or on a pallet.
WAREHOUSE SHIPPING STEPS
There are three basic shipping process steps used in a warehouse or
distribution center:

 Aggregate and manage order information

 Pick, pack, weigh, choose carrier and label
 Ship the order

Aggregate and manage order information: This step involves getting the
order information, validating addresses, confirming inventory availability,
combining orders going to the same address (or separating orders going to
different addresses) and preparing the order for shipment.

Pick, pack, weigh, choose carrier and label: This is the process of
picking and packing the products ordered, weighing the shipment, choosing
the right carrier and labeling the package for delivery to the end customer’s
address.

Ship the order: Shipping involves transferring the package to the selected
carrier and updating the shipping information to all parties.

COMMON SHIPPING ISSUES

In the process of shipping orders, several potential issues can arise and
derail a warehouse’s efficiency:

 Inventory shortages
 Storage and retrieval inefficiencies
  Cost-related problems
 Human errors
 Health and safety hazards
 Warehouse layout issues

Each issue has a solution. For example, to avoid inventory shortages, a

warehouse needs to have a system that promotes constant checking and
updating of inventory in real time.

If storage and retrieval inefficiencies are a problem, a warehouse may need

additional workers or more reliable equipment. Using robotics and
automation can also help improve accuracy, reduce human error
and eliminate labor shortages.

To solve cost-related problems, shippers need to research all possible

shipping methods and the associated costs. Transportation costs are
always in flux, so it’s important to stay up to date to ensure you get the best
value.

Warehouse layout issues and health and safety hazards go hand in hand. If
your warehouse space isn’t allocated properly, it will have a negative
impact on the fluidity of your shipping process. Keeping things clean,
organized and clearly labeled also goes a long way to making a warehouse
a safer place to work.

With warehousing best practices in mind, implementation and routine

review, you can improve the performance of your warehouse shipping
operations dramatically.
• Labour management

Warehouse Labor Management Guide

Your ecommerce business can’t run without an amazing team of warehouse
workers. These individuals carry out daily tasks – like managing inventory, picking
products, and packing orders – and you depend on them to get orders out the door.

But how you allocate and manage this workforce hugely impacts your operational
efficiency. To improve productivity, reduce costs, and minimize idle time and
overstaffing, you’ll need an optimized labor management strategy.

Read on for our guide to warehouse labor management, including basic principles,
best practices, and more.
 So, what do you want to learn?

What warehouse labor management is

Why warehouse labor management is important

Basic principles of warehouse labor management

The role of technology in labor management

Elevate warehouse labor management with ShipBob

Request Fulfillment Pricing

Let’s talk. Our experts can help you boost your order volume by 30% year over
year.

Warehouse labor management involves the efficient utilization, organization, and

optimization of human resources within a warehouse or distribution center.
Effectively managing warehouse labor is essential for maximizing productivity,
minimizing costs, and ensuring a smooth workflow. Here are key aspects of
warehouse labor management:

1. Workforce Planning:
 Forecasting: Use historical data and trends to forecast future workload and
staffing requirements.
 Seasonal Adjustments: Adjust staffing levels to accommodate seasonal
fluctuations in demand.
2. Staffing Models:
 Flexibility: Implement flexible staffing models to adapt to changing demands.
 Cross-Training: Cross-train employees to perform multiple roles, enabling
better workforce flexibility.
3. Labor Standards and Metrics:
 Establish Standards: Define standard operating procedures and time
standards for various tasks.
 Performance Metrics: Measure and analyze key performance indicators
(KPIs) to assess individual and team performance.
4. Scheduling:
 Shift Planning: Develop efficient shift schedules considering peak hours and
employee preferences.
 Overtime Management: Monitor and manage overtime to control labor
costs.
5. Task Allocation:
 Task Assignment: Assign tasks based on employee skills and expertise.
  Dynamic Tasking: Adjust task assignments in real-time based on changing
priorities.
6. Training and Development:
 Training Programs: Implement training programs to enhance employee skills
and efficiency.
 Continuous Learning: Encourage ongoing learning to keep employees
updated on new processes and technologies.
7. Performance Management:
 Regular Performance Reviews: Conduct regular performance reviews to
provide feedback and set performance goals.
 Recognition Programs: Recognize and reward top-performing employees to
boost morale and motivation.
8. Employee Engagement:
 Communication: Foster open communication channels to address concerns
and gather feedback.
 Team Building: Organize team-building activities to strengthen relationships
and collaboration among warehouse staff.
9. Health and Safety:
 Compliance: Ensure compliance with health and safety regulations.
 Training on Safety Procedures: Provide training on proper safety procedures
to minimize workplace accidents.
10. Labor Tracking Systems:
 Time and Attendance Systems: Implement automated time and attendance
tracking systems for accuracy.
 Biometrics or RFID: Use biometrics or RFID technology to streamline clocking
in and out processes.
11. Labor Cost Management:
 Budgeting: Develop and manage labor budgets to control costs.
 Cost Analysis: Regularly analyze labor costs and identify opportunities for
optimization.
12. Technology Integration:
 Warehouse Management System (WMS): Integrate WMS to automate and
optimize warehouse processes.
 Labor Management Software (LMS): Implement LMS to track and manage
labor performance.
13. Communication Tools:
 Communication Platforms: Utilize communication tools to facilitate real-
time communication among warehouse staff.
 Task Management Systems: Implement systems that allow for efficient task
assignment and tracking.
14. Employee Well-being:
  Wellness Programs: Consider implementing wellness programs to promote
employee well-being.
 Work-Life Balance: Encourage a healthy work-life balance to prevent burnout
and improve job satisfaction.

Effective warehouse labor management requires a holistic approach that considers

workforce planning, employee development, technology integration, and continuous
improvement. By optimizing labor processes, warehouses can enhance overall
operational efficiency and meet the challenges of an ever-changing supply chain

.
To learn more about how ShipBob can help you manage your warehouse labor,
click the button below.

• Yard and dock management

In this post, I would like to explain Dock and Yard management process.

Dock & Yard management is EWM functionality that integrates the warehouse with
the yard. The yard is based upon loading, unloading spaces, doors and checkpoints.

Introduction - This functions can be used to manage the flow of loading and
unloading vehicles. The yard is the outside area of the warehouse where all kinds of
transportations are being managed.

SAP Yard Logistics offers standard integration to EWM and SAP TM to cover end-to-
end processes in supply chain execution. With integration to SAP TM, Yard Logistics
recognizes upfront which trucks will arrive in our yard by receiving information from
Freight Orders. Upon door arrival, SAP Yard Logistics will send an update to SAP
EWM, so warehouse processes can start immediately after arrival. Once loading or
unloading is finished, SAP EWM will update SAP YL and the truck is allowed to
proceed to the yard. When the truck departs from the yard, SAP Yard Logistics
sends an update to SAP TM which can further process the truck to its next
destination.

‘Dock & Yard’ enhances delivery performance, brings efficacy in the entire supply
chain process.

What is Dock & Yard?

By Dock & Yard, we mean a contiguous area around a facility where vehicles or
containers used for moving goods are stored, including the dock doors or loading
areas to the warehouse. Please note that operationally gate control is necessary.
Yards are defined as one or more Plant/Shipping Point combinations. Warehouse
numbers may also be assigned to a Yard. Dock doors and Yard slots (positions) are
defined to a Yard. If a Warehouse number is assigned, Dock doors are validated
against Warehouse configuration.
Through Dock & Yard, end users schedule loading / unloading appointments which
can be live or drop vehicle, investigate line load opportunities, search for not yet
scheduled documents or date / time of scheduled document, can set up capacity
consumption according to business needs, execute vehicle movements and reports
within the yard and
the entire process enables efficiency for carriers, loaders and administrator.
The Load Appointment scheduling is used for scheduling an appointment for
unloading and/or loading of a vehicle, based on a call / info from a carrier with
reference to different documents related to the logistic flow, which could be an
inbound or an outbound flow. The inbound flow will be related to purchase of raw
material or finished products, the reception of stock transfers between plants /
storage locations, returns / refusals from customers and returnable from customers.
The outbound flow will be related to deliveries to customers, the issue of stock
transfers between plants / storage locations etc.

Why Dock & Yard is so important?

Dock & Yard does maintain and manage detailed loading/unloading schedule,
manage vehicles in yard and at dock doors, and performs reporting. Obvious
question that comes to our mind is that as to why Dock & Yard is so important ?

The reason as to why it is so important can be well understood if we go through the

following benefits one by one that Dock & Yard renders:

Customer delight through delivery performance

Through Dock & Yard management, it is possible to micro manage delivery schedule
and all actions can be taken to ensure that shipment is made as per the schedule. It
is possible to calculate the Must Depart Date and Time (MDT) and the Latest
Appointment Date and Time (LAT) for each load or shipment
Efficiency of carriers, loaders and administrator
Dock & Yard management, through scheduling of appointment and its execution,
enhances the efficiency of carriers, loaders and administrator. Since all activities are
based on pre-appointed schedule, it puts extra pressure on carriers, loaders and
administrator to finish the activities within the appointed time schedule, which, in
turn, does increase the efficiency.

Time Management
One of the prerequisite for D&Y is to define the appointment flow (master data) as
per the business requirement. The appointment flow types are (1) Customer
outbound, (2) Returns / returnable, (3) Stock transport orders outbound, (4) Stock
transport orders inbound, (5) Inbound from supplier and (6) Other. All these flow
types have a pre fixed time slot during the working day and the appointments are
scheduled according to each flow type time. This leads to an excellent time
management and its full utilization as per the plan.

Scheduling based on advanced transportation planning

In SAP, standard Transportation processes are managed using:
Shipment documents (for Scheduling & Execution)
Shipment Cost documents (for Purchasing & costing)
Shipment documents can only be created based on Delivery documents.
Shipment Cost documents are created with reference to a Shipment document

However, one of the main drivers for transport cost reduction is the capacity to early
plan and confirms transportation services. Given that the template recommendation
is to create deliveries at the latest stage possible, standard SAP transportation is not
adapted to Nestlé processes. SAP has been enhanced in order to support
transportation scheduling based on Sales Orders or Stock Transfer Requisitions:

Transportation scheduling for Sales Order documents is done using the custom
object “Load”
Transportation scheduling for stock transfer requisitions is done using Stock
Transport Orders

In Dock & Yard, scheduling of appointment for sales order is done through reference
document ‘Load’ and for stock transport orders, reference document ‘STO”.
 This process gives operational insights into inventory management and process
controls to deliver on time and every time.

I hope this article will be useful to understand Dock & Yard Management process.

 SAP Managed Tags:

Yard and dock management play crucial roles in the overall efficiency of a warehouse
or distribution center. Efficiently managing the movement of trucks, trailers, and
goods in the yard and at the docks helps streamline operations, reduce delays, and
improve overall productivity. Here are key aspects of yard and dock management:

1. Yard Management:

 Real-Time Visibility: Utilize technology such as RFID, GPS, or yard management

systems (YMS) to provide real-time visibility into the location and status of trailers in
the yard.
 Automated Check-In/Check-Out: Implement automated processes for truck check-
in and check-out to reduce wait times and improve the flow of vehicles.

2. Dock Scheduling:

 Appointment Scheduling: Implement an appointment system for truck arrivals and

departures to optimize dock utilization and reduce congestion.
 Prioritization: Prioritize appointments based on factors such as shipment urgency,
carrier agreements, and dock availability.

3. Dock Door Assignment:

 Dynamic Door Assignment: Use systems to dynamically assign dock doors based
on real-time information, including arrival times and priority of shipments.
 Communication: Facilitate communication between the warehouse and truck drivers
to inform them of assigned dock doors and any changes.

4. Queue Management:

 Virtual Queues: Implement virtual queuing systems to manage the order in which
trucks are processed at the docks.
 Alerts and Notifications: Use automated alerts and notifications to keep truck
drivers informed about their position in the queue and any delays.

5. Cross-Docking:

 Cross-Dock Planning: Plan and execute cross-docking strategies to expedite the

transfer of goods from inbound to outbound trailers without long-term storage.
 Inventory Visibility: Maintain real-time visibility into inventory levels to facilitate
efficient cross-docking operations.

6. Yard Shunting:

 Shunting Services: Utilize yard shunting services or dedicated yard trucks to move
trailers within the yard efficiently.
 Shunt Planning: Plan shunting activities to minimize trailer movements and
optimize yard space.

7. Trailer Tracking:

 GPS and RFID Technology: Employ GPS and RFID technology to track the location
and status of trailers in the yard.
 Yard Management Systems: Integrate yard management systems to provide a
centralized platform for tracking and managing trailer movements.

8. Resource Optimization:

 Dock Worker Allocation: Efficiently allocate dock workers based on workload and
priority of tasks.
 Equipment Allocation: Optimize the allocation of material handling equipment,
such as forklifts, to support dock operations.

9. Reporting and Analytics:

 Performance Metrics: Monitor and analyze key performance indicators (KPIs)

related to yard and dock operations.
 Data Analysis: Use data to identify areas for improvement, such as reducing dwell
times or optimizing dock utilization.

10. Security and Safety: - Surveillance Systems: Implement surveillance systems to

enhance security in the yard. - Safety Protocols: Establish and enforce safety
protocols for yard and dock operations to prevent accidents.
Efficient yard and dock management contribute to a smoother flow of goods,
reduced wait times, and improved overall warehouse productivity. Implementing
technology solutions and best practices in these areas is essential for modern
warehouses to meet the demands of an increasingly complex supply chain.

The Ultimate Guide to Yard

Management [+YMS
Software]
This article offers an in-depth look at yard management systems
(YMS) and their essential role in logistics and supply chain
management. Discover the functionalities, benefits, and challenges
of YMS alongside practical insights on the implementation.
Written by Maryam Oseni
Published in Yard Management · 6 min read · Aug 17, 2023
Yard management is an essential yet often understated part of logistics and supply
chain management. It involves the organization and control of activities in the yard
area of warehouses, distribution centers, and manufacturing plants. Here, the focus
is on managing the movement and storage of vehicles, containers, and goods,
ensuring they move smoothly from transportation to storage and vice versa.

The importance of efficient yard management has grown significantly in recent times.
The introduction of Yard Management Systems (YMS) has brought a technological
edge to this field, offering tools to enhance process efficiency, increase visibility, and
improve resource utilization.

This article will explore the various facets of yard management, from its basic
definition to the complexities of implementing a YMS. It will delve into key
functionalities, benefits, challenges, and best practices in yard management.

What is Yard Management?

Yard management is a critical aspect of logistics and supply chain operations. It

focuses on overseeing the movement of trucks, trailers, and other vehicles within the
yard of a warehouse, manufacturing facility, or distribution center.

It combines a range of activities designed to ensure efficient and effective

management of the yard space, including vehicle tracking, load sequencing, dock
scheduling, and gate management.

Traditionally, yard management relied heavily on manual processes and paper-

based systems. However, integrating technology has transformed these practices,
enabling more accurate and real-time tracking and coordination.

What is a Yard Management System/Software (YMS)?

A Yard Management System (YMS) is a software solution designed to oversee the

movement of trucks and trailers in the yard of a manufacturing facility, warehouse, or
distribution center. It functions as a critical component in logistics management,
focusing on maximizing efficiency and minimizing yard congestion.

The main components of a YMS typically include:

Software Interface: User-friendly dashboard that provides visibility and control over
yard operations.

Integration Capabilities: Allows for integration with other systems like WMS and
TMS.

Mobile Applications: Enables remote access and management through mobile

devices.

The advent of YMS introduced automation, improving accuracy and efficiency. Over
time, integrating technologies like RFID, barcodes, GPS, and cloud computing has
further enhanced the capabilities, providing real-time data and analytics, improving
decision-making, and facilitating seamless integration with other logistics systems.

Further reading: What is a Yard Management System?

7 Key functionalities of a Yard Management System

The primary goal of a YMS is to remove yard inefficiencies, reduce wait times, and
increase overall efficiency in the logistics chain. To do that successfully, a yard
management system must have these key features/components:

1. Vehicle tracking and management

One of the primary functions of a YMS is vehicle tracking and management. By

utilizing GPS and RFID technology, a YMS can accurately track the real-time
location of vehicles within the yard.

This feature is vital for managing the inbound & outbound movement of trucks and
trailers, ensuring they are efficiently allocated for loading and unloading operations.
Such precision in vehicle tracking aids in reducing wait times and preventing
bottlenecks, which are common challenges in yard operations.

2. Gate management

Gate management is a feature in YMS that streamlines the processes of trucks

entering and leaving the yard. This functionality involves managing appointments,
verifying driver credentials, and documenting the trucks’ arrival and departure times.

Efficient gate management reduces wait times at entry and exit points, ensuring
quick turnaround of vehicles and thus maintaining fluid movement within the yard.

3. Yard checks and asset visibility

Regular yard checks are crucial for updating trailers' status and contents. A YMS
facilitates better inventory management by providing visibility into the inventory within
the yard trucks.

This feature is essential for companies that rely on just-in-time inventory practices,
as it helps maintain accurate inventory levels and reduces the likelihood of stockouts
or overstocking.
4. Dock scheduling & management

Efficient use of docks is another critical aspect of yard management. A YMS

automates dock scheduling and effectively manages the allocation of these spaces
for loading and unloading activities.

This feature prevents scheduling conflicts and ensures optimal dock use,
contributing to a smoother flow of goods between the warehouse and vehicles.
Integrating dock management with warehouse operations further enhances
coordination, leading to a more agile supply chain process.

5. Reporting & analytics

A YMS is not just about managing day-to-day operations; it also offers valuable
insights through reporting and analytics. By analyzing data on yard operations, you
can identify areas for improvement and make informed decisions.

Reports generated by a YMS might include supply chain KPIs such as dwell times,
gate throughput, and dock utilization, offering a comprehensive view of yard
efficiency.

6. Appointment scheduling

Appointment scheduling is another crucial component in streamlining yard

operations. This feature allows for the systematic scheduling of vehicle arrivals,
departures, and service times, ensuring an orderly and efficient traffic flow within the
yard.

By scheduling appointments, you can significantly reduce detention and demurrage

charges due to loading and unloading delays. Scheduled appointments allow for
better planning and allocation of resources, ensuring that vehicles are serviced
promptly and efficiently.

7. Communication and alerts

Effective communication is fundamental in yard management. A YMS facilitates real-
time communication between yard managers, shippers, dock staff, and drivers. It
also sends notifications for urgent matters or operational exceptions, ensuring a
prompt response to any issues. This feature is crucial in maintaining a proactive
approach to managing yard activities.

YMS Integration with WMS and TMS

Integrating a yard management system (YMS) with warehouse management

systems (WMS) and transportation management systems (TMS) is a strategic move
that can significantly enhance the efficiency and effectiveness of supply chain
operations.

Integration in this context refers to the seamless exchange of data and operations
coordination between the YMS, WMS, and TMS. This interconnectivity ensures that
each segment — yard, warehouse, and logistics — is informed by the activities and
status of the others, leading to more synchronized and efficient operations.

It also ensures that activities like inventory management, loading and unloading, and
transportation scheduling are coordinated, minimizing delays and maximizing
productivity.

Here is how the integration of these systems works:

 Data sharing: Vital information like shipment schedules, inventory levels, vehicle
locations, and dock availability is shared across these systems. For instance, the
WMS might inform the YMS of upcoming shipments, enabling the yard to prepare for
vehicle arrivals and allocate docks accordingly.
 Real-time decision-making: With real-time data, each system can make informed
and timely decisions. For example, if the TMS indicates a delay in transportation, the
YMS and WMS can adjust their schedules to accommodate this change, thus
maintaining the flow of operations.
 Enhanced responsiveness: This integrated approach enhances the supply chain's
responsiveness. With immediate access to each area's status, each system can
quickly adapt to changes, whether it's an unexpected surge in inventory, a
transportation delay, or a sudden need for more dock space.
 Predictive analysis: The shared data allows for predictive analysis. Based on
current trends and data, systems can forecast future needs or bottlenecks, enabling
proactive planning and resource allocation.
How to implement a Yard Management System

A yard management system (YMS) can provide significant efficiency gains for supply
chain management, but successfully implementing these systems requires careful
planning and execution. Here are some key steps for effectively implementing a
YMS:

1. The first step is determining your yard management pain points and
requirements. Look at current processes and pain points related to dock
scheduling, yard checks, gate management, order sequencing, etc. Define your
must-haves for a YMS and existing gaps.

2. Research yard management software vendors to find systems that best align
with your needs and environment. Compare capabilities, technology features, and
vendors. Develop a shortlist of options and request demos from top choices.

3. Work with stakeholders and the YMS provider to define the initial scope - which
yard processes will be addressed in the first phase and how success will be
measured. Standard metrics are turn times, overtime, yard incidents, and dock wait
times.

4. Create a phased rollout plan starting with a pilot of select functions or yard areas
before expanding system-wide.
5. Develop training programs to educate workers on using the YMS before
launch. The programs should include yard workers, office staff, dispatchers, carriers,
and other stakeholders.

6. Launch the YMS and support employees through the transition. Monitor results
against critical metrics and expand on the platform over time.
Benefits of a robust Yard Management System

A robust yard management system benefits logistics and supply chain operations in
many ways. Here, we explore seven primary yard management system benefits that
underscore the importance and impact of implementing a sophisticated YMS.

1. Operational efficiency: Advanced YMS removes manual logs and optimizes

automation. Every trailer's movement is logged digitally, ensuring operations are
executed precisely. This approach reduces idle times and manual processes and
provides faster turnarounds, streamlining processes.
2. Real-time visibility: A dynamic YMS allows stakeholders to monitor yard assets,
trailer movements, dock doors, inventory statuses, and even potential disruptions in
real-time. This instant highlighting of the disruptions helps warehouse managers
react swiftly and minimize the issues.
3. Enhanced dock scheduling: One of the standout features of a YMS is its ability to
optimize dock scheduling. This optimization ensures that each dock is used to its
fullest potential, thereby reducing idle times. A well-implemented YMS also balances
the workload among docks, preventing some from being overburdened while others
are underutilized.
4. Cost savings: Efficient yard management directly translates to cost savings. For
instance, better scheduling and faster processing within the yard can significantly
reduce detention and demurrage fees. Furthermore, optimal resource allocation,
made possible by a YMS, helps in cutting down overall operating costs, contributing
to a healthier bottom line.
5. Increased safety: Automated systems like a YMS improve safety within the yard by
managing vehicle movements and reducing the chances of accidents. Additionally, a
YMS assists in maintaining essential records and ensuring compliance with various
safety and operational regulations, which is crucial for avoiding legal and financial
penalties
6. Scalability: Modern YMS solutions are designed to scale seamlessly,
accommodating increasing numbers of trailers, goods, and even docks, ensuring
businesses are always ready for the challenges of tomorrow.
7. Better customer service: Reliable and efficient operations lead to improved
customer satisfaction. By ensuring faster and more accurate processing in the yard,
the system contributes to quicker overall delivery times, a key factor in customer
satisfaction.
Get more details: Top 10 Benefits of a Yard Management System

Challenges of maintaining an effective yard

management system

Implementing a yard management solution brings immense benefits, but companies

can also face obstacles in rolling out and sustaining these systems over time. Some
common challenges include:
Integration complexities

Integrating a YMS software with existing systems like ERP, WMS and TMS can be
complex, especially if these systems are not designed for easy integration. Opt for
YMS solutions known for their compatibility or those that offer customizable
integration options. Engage IT specialists to ensure smooth integration.

Data quality

A YMS is only as good as the data entered into it. Inaccurate or incomplete data on
truck locations, appointment times, dock schedules, and more will diminish the
system's effectiveness. Implement strict data management protocols and regular
audits to ensure data integrity. Training staff on the importance of accurate data
entry is also crucial.

User adoption

Resistance to change and the learning curve associated with new systems can
hinder user adoption. Develop comprehensive training programs and involve
end-users in the selection and design process to increase buy-in and ease the
transition.

Scalability

As a business grows, its YMS may struggle to keep up if it lacks scalability and
flexibility. Choose a YMS that offers scalability and can adapt to changing
business needs. Regularly review the system's performance to ensure it aligns with
evolving operational demands.

Technical issues

Technical glitches and system downtime can disrupt yard operations, leading to
inefficiencies. Ensure that the YMS provider has great technical support. Have
contingency plans in place to effectively handle system downtimes.
Best practices in yard management

Implementing best practices in yard management is essential for maximizing the

efficiency and effectiveness of logistics operations. These practices not only
enhance the functionality of a Yard Management System (YMS) but also contribute
to smoother, more cost-effective operations. Here are key best practices to consider
for optimal yard management.

1. Design the yard layout to minimize movement and optimize flow. Ensure that the
layout accommodates easy access to docks and storage areas. The design should
be flexible to adapt to changing needs, such as peak periods or different types of
cargo.

2. Foster clear and consistent communication among yard staff, warehouse teams,
and transportation personnel. Maintain open lines of communication with carriers
and suppliers to ensure coordination and timely operations.

3. Fully utilize the capabilities of your YMS for tasks like scheduling, tracking, and
reporting. Embrace automation technologies where possible to increase accuracy
and reduce manual labor.

4. Regularly train staff on the latest yard management techniques and technologies.
Encourage continuous learning and skill development to keep up with industry
advancements.
5. Implement a preventive maintenance schedule for all vehicles and equipment to
reduce breakdowns and delays. Conduct regular inspections to ensure all equipment
is in good working order.

6. Regularly monitor key performance indicators to evaluate the efficiency of yard

operations. Use data and feedback to continually refine processes and address
areas of improvement.

7. Implement eco-friendly practices, like reducing emissions and optimizing resource

use. Develop and adhere to sustainability policies that align with broader
environmental goals.

By adopting these best practices, you can create a more efficient, safe, and
sustainable yard environment.

Why GoRamp’s yard management software stands out

Due to increasing problems with yard inefficiencies, there are multiple yard
management solutions out there. However, GoRamp’s yard management
software stands out as the only YMS solution that actually simplifies yard
management. Here are some more details on how it does that:

1. Easy to set up: GoRamp YMS is one of the easiest cloud-based solutions to set up.
All you have to do is create a blueprint of your yard, add yard elements like gate
positions and parking lots, and invite your team members to sign in to your yard.
In three simple steps, you and your team are ready to use GoRamp YMS.
2. Drag-and-drop: While other solutions require you to jump through many hoops
before setting up your yard, GoRamp YMS uses a simple drag-and-drop method
to set up your yard visualization, move trucks around in your digital yard, and so
much more.
3. No complicated roles: There are two main roles in GoRamp YMS: Yard
operator and Yard worker. The permissions of each role are very clear, thereby
providing adequate information on who is handling what.
4. Automated task assigning: No more shouting over radios, missed emails, or
misunderstood calls when assigning tasks. GoRamp YMS easily gets everyone on
the same page, from carriers to yard drivers, through a unified communication
channel.
5. Easy to understand user-centric designs: Recognizing that the best solutions are
user-friendly, GoRamp's YMS boasts an intuitive interface. This dramatically reduces
the learning curve and promotes efficiency.
 6. It is readily scalable: Whether you're an upcoming startup or a large enterprise,
GoRamp scales per your needs and workflow, ensuring you're always equipped with
cutting-edge features.
7. Robust security and compliance: GoRamp's YMS adheres to the highest data
security standards and ensures regulatory compliance, helping businesses navigate
the intricate maze of industry norms.
Some other standout features of GoRamp YMS include:

 Real-time visibility of yard assets

 Digital scheduling calendar
 Dynamic yard map.
 Parking management.
 Asset location tracking.
 Internal fleet management
 Up-to-the-minute schedule.
 Easy truck check-in and check-out.
 No hidden implementation and onboarding fees
Book a demo today to see how GoRamp works specifically for your yard.

YARD MANAGEMENT 101:

INTRODUCTION AND
BEST PRACTICES
December 2, 2022 / By Logimax / Uncategorized / Yard

Management / Reading Time: 13 minutes

Curious to learn about yard management and how you can implement best
practices in your business? Read on for more information.

What Is Yard Management?

In the world of logistics and supply chain, yard management is a term used
to describe the organization and handling of materials in a designated yard or
outdoor storage area. This can include everything from organizing shipments
and tracking inventory to loading and unloading yard trucks.

While it may seem simple on the surface, there are a number of best practices
that must be followed in order to ensure efficient and safe operations.

In this guide, we will discuss what yard management is, as well as some of
the best practices and yard management solutions for warehouses, logistics
companies, and supply chain operators of all sizes.

What Is A Yard Management System And Yard

Management Software?
A yard management system (YMS), or yard management software, is
software that helps logistics and supply chain professionals plan, execute,
and optimize yard operations. A good YMS will have features such as real-
time tracking of assets, yard maps, appointment scheduling, and gate control.

YMS can be used to track inbound and outbound shipments, optimize yard
space, and improve communication between yard workers and other
stakeholders.

Why Is It Important?
Yard management solutions are important for a number of reasons.
First, it can help to improve the efficiency of your warehouse or distribution
center operations. By having a clear picture of what assets are in your yard,
you can avoid potential bottlenecks and delays in supply chain management.

Secondly, yard management can help to improve safety in your facility. By

tracking assets and keeping yard workers informed of their location, you can
help to avoid accidents and injuries.

Finally, it can also help to improve customer satisfaction by ensuring that

shipments are loaded and unloaded in a timely manner.
Yard Management Software System: Key
Functionalities
As we mentioned earlier, a yard management system is software that helps
logistics and supply chain professionals to plan, execute, and optimize yard
operations.

Some of the key functionalities of yard management software include:

Real-time tracking of assets:

A good YMS will have features such as real-time tracking of assets, yard
maps, appointment scheduling, and gate control.

Inbound and outbound shipment tracking:

YMS can be used to track inbound and outbound shipments, optimize yard
space, and improve communication between yard workers and other
stakeholders.

Appointment scheduling
By having a clear picture of what assets are in your yard, you can avoid
potential bottlenecks and delays.

Gate control
By tracking assets and keeping yard workers informed of their location, you
can help to avoid accidents and injuries.

Now that we have a better understanding of what yard management software

is and why it’s important, let’s take a look at some of the best practices for
warehouses and supply chains.

Yard Management Process Flow

The process flow can be divided into four main
phases: Receiving, Staging, Shipping, and Maintenance.

Receiving:
The first step in the process is receiving. During this phase, shipments are
delivered to the yard and checked in. This includes verifying that the
shipment is complete and that all the necessary documentation is in order.

Staging:
Once a shipment has been checked in, it will be staged for loading or
unloading. During this phase, yard workers will use YMS software to plan the
most efficient route for moving the shipment through the yard.

Shipping:
The next phase in the process is shipping. During this phase, shipments are
loaded onto trucks or trailers and dispatched to their destination.

Maintenance:
The final phase in the process is maintenance. During this phase, yard
workers will conduct routine maintenance on yard equipment and
infrastructure. This includes tasks such as mowing the lawn, repairing fences,
and painting lines on the pavement.

By following these four simple steps, you can ensure that your yard process is
efficient and effective.
YMS Integration Options
In order to get the most out of your system, it’s important to integrate it with
other systems in your warehouse or distribution center.

Some of the most common integration options include:

 Warehouse Management System (WMS): A WMS is software that helps

you to manage the day-to-day operations of your warehouse.
 Transportation Management System (TMS): A TMS is software that
helps you to plan and execute transportation operations.
  Enterprise Resource Planning (ERP) system: An ERP system is software
that helps you to manage your business’s finances, inventory, and
operations.

By integrating your YMS with other systems in your business, you can help to
improve the overall efficiency of your operations.

Logimax WMS offers a number of integration options to help you get the most
out of your YMS.

Contact us today to learn more about our integration options.

Optimization Opportunities Offered By YMS

Implementation
Once you have a yard management system in place, there are a number of
optimization opportunities that you can take advantage of.

Some of these optimization opportunities include:

Improving yard utilization

By tracking assets and yard activities, you can identify opportunities to
improve yard utilization.

Improving communication
By integrating your YMS with other systems in your business, you can improve
communication between yard workers and all stakeholders.

Improving safety
By tracking assets and yard activities, you can help to improve yard safety.

Improving customer satisfaction

By tracking yard activities and integrating your YMS with your transportation
management system, you can improve customer satisfaction.

Reducing yard congestion

By tracking yard activities and managing gate entry and exit, you can help to
reduce yard congestion.

Improving appointment management

By integrating your YMS with your transportation management system, you
can improve appointment management.

Reducing dwell time

By tracking yard activities and integrating your YMS with your transportation

By taking advantage of these optimization opportunities, you can help to

improve the overall efficiency of your yard management operations.

Dock and Yard Management System

Like a yard management system (YMS), a dock and yard management
system (DYMS) is software that helps you to manage the operations of your
dock and yard.

A DYMS can help you to improve the efficiency of your dock and yard
operations by providing features such as:

 Real-time tracking of assets

 Accurate yard maps
 Gate entry and exit management
 Appointment management
 Dock and yard activity reporting

By using a DYMS, you can help to improve the efficiency of your dock and
yard.

Key Benefits Of Dock And Yard Management

System (DYMS)
A DYMS is a software application that helps to manage yard operations in a
warehouse or distribution business.

The goal of a DYMS is to optimize the flow of traffic and resources in and out
of the yard, while also reducing costs and improving customer satisfaction.
There are a number of benefits that can be achieved by using a dock and yard
management system, including:

Improved asset visibility

A DYMS can help to improve asset visibility by tracking the location of assets
in real-time. This information can be used to optimize operations and avoid
delays.

Reduced costs
A DYMS can also help to reduce costs by improving the efficiency of
operations. By reducing the time it takes to load and unload trucks, you can
free up valuable yard space and reduce labor costs.

Improved customer satisfaction

It can also help to improve customer satisfaction by ensuring that shipments
are loaded and unloaded in a timely manner.

Yard Management Systems And Warehouse

Management Systems
A YMS is often integrated with a warehouse management system (WMS) to
provide a complete view of warehouse operations.

The integration of these two systems can help to improve communication

between yard workers and all stakeholders.

It can also help to improve the overall efficiency of your business.

Container Yard Management

Container yards are areas where containers are stored prior to being loaded
onto ships or trucks.

There are a number of best practices that should be followed in order to

ensure efficient container operations.

Some of these best practices include:

 Using software to track containers

 Maintaining accurate yard maps
 Creating efficient loading and unloading plans
 Communicating yard status to all stakeholders

By following these best practices, you can help to improve the efficiency of
your container yard operations.
Today’s Challenges
Despite the many benefits offered by yard management systems, there are a
number of challenges that can make it difficult to implement a YMS. Some of
these challenges include:

Lack of standardization
There is no one-size-fits-all solution. Every business has its own unique set of
requirements. This can make it difficult to find a yard management system
that meets your specific needs.
Cost
Due to their complexity, these systems can be expensive to implement and
maintain. You may need to invest in new hardware, software, and training for
your staff.

Complexity
Yard management systems can be complex to set up and use. They often
require integration with other systems, such as transportation management
systems and warehouse management systems.

In spite of these challenges, the benefits offered by these systems can be

well worth the effort.

Yard Management Capabilities For Modern

Logistics
Whether you are using yard management for the first time or are looking to
improve your current system, there are a few key capabilities that you should
look for in a yard management software solution.

Real-time Asset Tracking

The first step to successful yard management. One of the most important
features of a yard management system is knowing what assets you have in
your yard and where they are located.

Any modern business also needs the ability to track these assets in real-time.
This information can be used to improve operations and avoid potential
delays. This can be done with the help of RFID tags, barcodes, or GPS
tracking devices.

Load Planning and Load Optimization

A good system will help you to plan and optimize your load plans. This can
include things like shipment sequencing and order consolidation.

Communication
Clear and concise communication is essential for any system to be
successful. This includes communication between yard workers, dispatchers,
and other stakeholders.

Reporting
A good YMS will also provide you with the ability to generate reports on
your operations. This can be useful for identifying trends and improving your
process.

Appointment scheduling
Another important feature is the ability to schedule appointments. This can be
used to ensure that operations are running smoothly and that there are no
potential bottlenecks.

These are just a few capabilities that are essential for modern logistics.
Yard Management Best Practices:
There are a number of best practices that should be followed in order to
ensure efficient and safe operations.

Some of these best practices include:

 Tracking all assets in the yard in real-time

 Maintaining accurate yard maps
 Scheduling appointments for yard activities
 Managing gate entry and exit
  Communicating yard status to all stakeholders

By following these best practices, you can help to improve the efficiency and
safety of your operations.

Choosing A Vendor
When choosing a yard management system vendor, it’s important to consider
your specific needs and requirements.

Look at all of the features offered by a vendor to find the best solution for
your business.

Yard Management System Cost

The cost of a modern and efficient system will vary depending on the features
and functionalities that you require.

Expect to pay a monthly fee that provides a basic system.

However, if you need more advanced features, there may be an extra cost.

How To Implement A Yard Management System

If you’re looking to improve the efficiency of your business, implementing a
yard management system is a great place to start.

There are a few things that you need to keep in mind when implementing a
YMS:

 Define your goals and objectives

 Choose the right system vendor
 Train your employees
 Set up yard management processes and procedures
 Monitor and measure results

A YMS can work seamlessly with your WMS once integrated. But third-party
systems may require custom integration. The benefit of using a Logimax
WMS with a YMS Module is that no added integration work is required.

Yard Management Solutions: Logimax WMS +

YMS Module
If you’re looking for the best yard management software that can help you to
improve the efficiency of your business, look no further than Logimax WMS
with a Yard Management module.

Logimax WMS can be easily integrated with our cloud-based yard

management solution. This combination offers all of the features and
functionalities that we’ve discussed in this guide.

Some of the key benefits of using Logimax WMS with yard management
module include:

 real-time tracking of assets

 inbound and outbound shipment tracking
 appointment scheduling
 gate control
 increased customer satisfaction.

With a third-party YMS, it requires being integrated with your warehouse

management system. However, Logimax WMS with a YMS module requires no
added integration work. This saves you time and money.

Final Thoughts
In conclusion, yard management is a critical part of any warehouse or supply
chain operation. By following the best practices outlined in this guide, you
can help to improve the efficiency and safety of your operations.

If you have any questions or if you would like to learn more about our yard
management software, please contact us. We would be happy to answer any
of your questions. We offer a free consultation to help you determine if our
system is right for your business.

Contact us today to learn more about how we can help you improve your
operations.

FAQs

Yard Management Definition

Yard management is the coordination of yard operations in a warehouse or
distribution center. The goal is to optimize the flow of traffic and resources in
and out of the yard, while also reducing costs and improving customer
satisfaction.
What Is a Yard In Supply Chain? What
Does Yard Mean In Logistics?
A yard is a location where goods are stored prior to being loaded or unloaded
for transport. Yards are commonly used in the transportation and logistics
industry, as they provide a convenient place to store goods while they are
waiting to be shipped.

What is a yard warehouse?

A yard warehouse is a type of storage facility used to store goods waiting to
be shipped. Yard warehouses are typically located near transportation hubs,
such as airports or railroads.

What is a yard and a dock?

A yard is a location where goods are stored prior to being loaded or unloaded
for transport. A dock is a structure that is used to load and unload ships.
Docks are typically located near yards. Dock management is an essential
function of any DYMS. A good DYMS can help your dock teams operate
efficiently.

What is Yard Management Software?

It is a type of software that is designed to help businesses coordinate yard
operations. This software can be used to track vehicles, schedule
appointments, and manage resources.

• Reporting

Essential Warehouse
Management Reports
Your warehouse is set up. You’re well-versed in the basics of

warehouse management, and all ready to start with a new strategy.

However, there is one part of warehouse management which you might

have missed. It happens a little later in the process, and it’s called

warehouse reporting.

Warehouse reporting helps you to observe, measure, and analyze your

warehouse performance and stock status. It also gives you a solid

base for building your future strategies. Many business owners get

excited about the idea of implementing warehouse management and

streamlining their operations, but when they sit down to analyze the

numbers, they don’t know which reports they should look at.

So, to help you solve this challenge, here’s a quick overview of the five

most essential warehouse reports that you need to look at to complete

your warehouse management strategy.

Before we dive in, here’s a word of advice. If you want to make the

most out of your warehouse management reporting, a warehouse

management system is much more powerful than manual reports or

spreadsheets. A comprehensive system can use automation to make

your warehouse processes easier and a lot more reliable. In this

article, we will be covering reports that are easily generated in most of

the warehouse management systems out there.

Here are our top 5 essential reports:

1. Warehouse summary report

This will probably be your most frequently used warehouse report. A

warehouse summary report gives you an overview of the stock status

of all your inventory items in each warehouse. With this report you can

see how many items came in and how many went out of your

warehouse during a certain period, and what the current stock level is

for each item. If you’re using an application like Zoho Inventory , you

can also see how many items have been committed for orders, but not

yet dispatched from the warehouse. This gives you a better picture of

how many items are actually available for sale.

The warehouse summary report is a good way of measuring your

performance on a daily basis, or even for longer times like a month or

even a year. If your warehouses are located in different areas, this

report can also help you keep your stock where it’s most in demand. If

one warehouse hardly shows any movement for a particular item, then

you might choose to store most of the stock for that item in a different

warehouse.

2. Order fulfillment report

One of the most crucial functions performed at the warehouse level is

order fulfillment, or the process of packing and shipping products to

the customer’s location. The order fulfillment report is significant

because it gives you an overview of how many items are packed and

how many are ready to be shipped from each warehouse.

With this report you can quickly understand how much fulfillment

activity you can expect in your warehouse, and how much workforce
will be needed to complete the operation. This will help you to plan

your warehouse tasks and allocate your staff ahead of time.

This report is also good for reviewing the efficiency of your order

fulfillment process. At the end of the day, you can check the status of

your scheduled shipments to see whether you were able to complete

all of them during the day. This lets you know if you need to

troubleshoot any roadblocks that are delaying your shipment process.

With 61% of customers wanting faster deliveries from sellers, this

report can help you meet that demand.

3. Vendor report
A vendor report is a good place to start analyzing your purchase

activities and your relationship with your vendors. At a first glance, it

tells you the history of the purchases and payments you’ve made to

your vendors, but when you look closer, it can give you more insights.

With the help of a vendor report, you can revisit the terms and

conditions that you had agreed to at the beginning of your relationship

with your vendor. It can also be used to create a vendor report card -a

detailed summary of the performance of your vendor over time—which

can help you determine how well your vendor relationships are working

and when you may want to consider changing vendors.

Usually, business owners and their vendors mutually decide on a set of

terms and conditions at the beginning of their relationship. This sets

the stage for effective interactions. However, in the long run, the

business owner should be thinking about how well the relationship is

actually working for them, and making a vendor report card. A vendor

report can help with this long term goal.

With a vendor report, you can analyze the average time taken by the

vendor to fulfill an order, check the number of items that were returned

by your customers because of bad quality, and look for any

discrepancies in pricing policy. You can also see whether you need a

new process for dealing with dead stock -for instance, if you discover

that you have a lot of dead stock from one vendor, you may be able to

free up a lot of space in your warehouse by sending it back.

4. Cycle count report

Cycle counting is the process of counting some portion of your

warehouse stock at regular intervals. It is a common practice used by

many businesses to check the accuracy of their inventory records. It

provides an opportunity to identify any mismatches and the possible

reasons behind them.

Running cycle counts instead of complete shelf counts is a wonderful

and effective way of breaking down a time-consuming task into smaller

batches. A cycle count report makes it even more effective by showing

you exactly which locations of your warehouse have already been

inspected, and which are remaining. This saves you from wasting time
double counting and helps you keep your inventory records perfect.

And when the numbers come in from each batch of cycle counting, the

cycle count report gives you a faster, more reliable view of the results

than a manual tally or a counting spreadsheet can provide.

5. Warehouse expense report

A warehouse involves high expenditure due to its large scale and work

force. Your expenses range from daily wages to repairs and

maintenance on your racks and pallets. A warehouse expense report

accumulates all of these costs in a common place to give you a holistic

view of your expenses at the warehouse level.

If you use an expense reporting application , you can sort the data to

see where you have been spending the most and where you may be

able to cut back. A close study of this report will have a direct impact

on the profitability and sustainability of your warehouse operations.

Wrapping up
Your warehouse acts as a hub for the movement of items in your

factory or store. With so many activities being carried out, it’s easy to

lose track of details, and hard to know where to find the information

you need to manage your warehouse well. But if you know which

warehouse reports to look at, you can organize the massive amounts of

data that your warehouse is generating and use that data to inform

your warehouse management.

 The warehouse summary report gives you your daily performance at a

glance, while your order fulfillment report helps you analyze the speed

of your fulfillment activities and the sales velocity of your business. On

the purchasing side, vendor reports help you optimize your buying

decisions and vendor relations.

Cycle count and warehouse expense reports act as an informal audits

for your inventory and expense health respectively. The cycle count

report helps you quickly identify mismatches in your stock records, and

the expense report helps you examine where you can make changes to

your warehouse spending.

Put together, these reports form an essential tool for any business

owner and warehouse manager. Knowing how to use them can help

you supervise better, scale your business faster, and build a better

inventory management strategy.

Warehouse reporting involves the generation and analysis of various reports to

provide insights into the performance, efficiency, and overall operations of a
warehouse. These reports help warehouse managers and stakeholders make
informed decisions, optimize processes, and identify areas for improvement. Here are
common types of warehouse reports:

1. Inventory Reports:
 Stock Levels: Monitor current inventory levels for all products in the
warehouse.
 ABC Analysis: Classify items into categories (A, B, C) based on their
importance, helping prioritize inventory management efforts.
 Stock Aging: Analyze the age of inventory to identify slow-moving or
obsolete items.
2. Order Fulfillment Reports:
 Order Accuracy: Track the accuracy of order picking and packing processes.
  Order Cycle Time: Measure the time taken from order placement to order
shipment.
 Order Fill Rate: Evaluate the percentage of customer orders fully filled within
a specified timeframe.
3. Receiving and Putaway Reports:
 Receipt Accuracy: Monitor the accuracy of receiving processes, ensuring the
correct quantity and quality of incoming goods.
 Putaway Efficiency: Analyze the efficiency of putting away received goods
into designated storage locations.
4. Picking and Packing Reports:
 Pick Accuracy: Measure the accuracy of items picked against the items listed
in customer orders.
 Packing Efficiency: Evaluate the time and resources required for packing
orders.
5. Shipping Reports:
 On-Time Shipments: Track the percentage of shipments dispatched on time.
 Shipping Costs: Analyze shipping costs to identify opportunities for cost
savings.
6. Returns Reports:
 Return Rates: Measure the frequency of product returns.
 Reasons for Returns: Analyze reasons for returns to address underlying
issues.
7. Labor Productivity Reports:
 Labor Utilization: Assess the efficiency of labor resources in the warehouse.
 Picking Productivity: Measure the productivity of order picking processes.
8. Space Utilization Reports:
 Warehouse Space Usage: Evaluate the overall utilization of warehouse space.
 Storage Efficiency: Analyze how effectively storage space is utilized.
9. Equipment Utilization Reports:
 Forklift Usage: Monitor the usage of forklifts and other material handling
equipment.
 Equipment Downtime: Track downtime and maintenance requirements for
equipment.
10. Compliance and Safety Reports:
 Safety Incidents: Report on the number and nature of safety incidents within
the warehouse.
 Regulatory Compliance: Ensure compliance with safety and industry
regulations.
11. Supplier Performance Reports:
 Supplier Lead Times: Assess the lead times provided by suppliers.
 Supplier Accuracy: Evaluate the accuracy of shipments received from
suppliers.
12. Financial Reports:
 Cost per Order: Analyze the cost associated with fulfilling each customer
order.
 Return on Investment (ROI): Evaluate the overall performance and return on
investment in warehouse operations.
13. Forecasting and Demand Reports:
 Demand Trends: Identify patterns and trends in product demand.
 Forecast Accuracy: Assess the accuracy of demand forecasts compared to
actual sales.
14. Environmental Impact Reports:
 Energy Consumption: Monitor the warehouse's energy consumption.
 Carbon Footprint: Evaluate the environmental impact of warehouse
operations.

These reports can be generated using warehouse management systems (WMS),

enterprise resource planning (ERP) systems, or specialized reporting tools. Regular
analysis of these reports helps warehouse managers make data-driven decisions,
optimize processes, and enhance overall warehouse performance.

Types of Inventory Control Systems

Inventory control systems are crucial for managing and maintaining optimal levels of
inventory within a business. Different types of inventory control systems are used to
track and manage inventory efficiently. Here are some common types:

1. Periodic Review System:

 Overview: In this system, inventory levels are reviewed at specific intervals
(periods).
 Process: Managers conduct manual reviews periodically and place orders to
replenish stock as needed.
 Advantages: Simplicity, especially for businesses with a wide variety of
products.
2. Perpetual Inventory System:
 Overview: Real-time tracking of inventory levels.
 Process: Uses technology, such as barcode scanners or RFID, to update
inventory levels as each transaction occurs.
 Advantages: High accuracy, real-time visibility into inventory, and improved
control over stockouts and overstock situations.
3. Just-In-Time (JIT) System:
 Overview: Aims to minimize inventory levels by receiving goods only as they
are needed for production or sales.
 Process: Requires tight coordination with suppliers to deliver materials or
products precisely when needed.
  Advantages: Reduces holding costs, minimizes waste, and improves cash
flow.
4. ABC Analysis:
 Overview: Classifies inventory items into categories based on their
importance.
 Process: A items are considered high-value and closely monitored, B items are
of medium importance, and C items are low-value and may have less frequent
reviews.
 Advantages: Focuses attention on critical items, allowing for efficient
allocation of resources.
5. Bulk Shipments:
 Overview: Orders are placed in large quantities to benefit from volume
discounts or reduced shipping costs.
 Process: Requires careful demand forecasting and planning to avoid
overstocking or stockouts.
 Advantages: Cost savings due to economies of scale.
6. Cross-Docking:
 Overview: Goods are received and immediately shipped out without being
stored in the warehouse.
 Process: Minimizes storage time, reducing holding costs and speeding up the
order fulfillment process.
 Advantages: Streamlines operations and reduces the need for warehouse
space.
7. Drop Shipping:
 Overview: Retailers do not stock the products they sell; instead, they
purchase items from a third party and have them shipped directly to the
customer.
 Process: Reduces the need for a physical inventory, and inventory is only
purchased when a sale is made.
 Advantages: Lowers holding costs and reduces the risk of excess inventory.
8. Consignment Inventory:
 Overview: Suppliers retain ownership of inventory until it is sold by the
retailer.
 Process: Retailers only pay for goods when they are sold, reducing financial
risk.
 Advantages: Minimizes carrying costs and allows retailers to offer a broader
product range.
9. Two-Bin System:
 Overview: Simple visual control system that uses two bins for each item—
when one bin is empty, it triggers the reordering process.
 Process: Reduces the risk of stockouts, but manual monitoring is required.
 Advantages: Simple and cost-effective for managing low-value items.
10. Economic Order Quantity (EOQ):
 Overview: Determines the optimal order quantity to minimize the total cost
of ordering and holding inventory.
 Process: Balances the costs of ordering (set-up costs) and holding (storage
costs) inventory.
 Advantages: Minimizes total inventory costs and helps prevent over-ordering
or under-ordering.

Choosing the right inventory control system depends on factors such as the nature
of the business, the type of products, demand patterns, and available resources.
Many businesses use a combination of these systems to effectively manage their
inventory.

A Guide to Inventory Control

Learn more about inventory control: definition, methods, types, and ways to
maximize your inventory.

Published 4 Jan 2024

Article byLeizel Estrellas

|8 min read

What is Inventory Control?

Also called stock control, inventory control consists of systems and procedures for managing
inventory items in a company’s warehouse. It monitors the movement and storage of goods in
a warehouse to help businesses maintain a sufficient supply in good condition. Establishing
an inventory control system enables them to satisfy customer demands and maximize profits.

Inventory control is a key element of an inventory management system. Warehouse managers

and production planners should adhere to the following activities and procedures in
controlling their inventory:
  Receiving, storing, and transferring goods
 Placing items in strategic locations
 Tracking inventory items and their locations in the warehouse
 Documenting product details and histories
 Monitoring the condition of items in stock
 Fulfilling purchase orders with stock on hand
 Integrating barcode scanners
 Forming reorder reports

Difference Between Inventory Control and Inventory

Management
Although these two concepts go hand in hand, there are slight differences between inventory
control and inventory management. Inventory control handles existing stock in a warehouse,
while inventory management involves the overall movement of goods across supply chains.

The table below compares the two processes against their scope, goal, areas of concern, and
actions.

Inventory Control Inventory Management

Scope Existing inventory in the warehouse Raw materials and finishe

entire production lifecycle

Goal Ensuring stocks in the warehouse are enough Having the right inventory
and in good condition at the right time, and with

Areas of Concern What items are in the inventory? Which items should you o
Where are these items located in the How many items do you n
warehouse? When should you order th
What is the condition and status of these
items?

Actions Receiving, storing, and transporting Predicting customer dem

inventory previous data
Checking stock items for their expiry dates, Reordering and managing
spoilage, quality issues, and so forth the supply chain

Types of Inventory Control Systems

There are two main types of inventory control systems: the periodic and the perpetual system.
Choosing the right inventory control system will depend on the business type, size, and kind
of inventory. This section discusses these two types in detail, covering their pros and cons, as
well as what they’re best for.

Periodic Inventory Control System

The periodic inventory control system pertains to a recurring count of goods at specific
intervals. In this system, warehouse managers manually count their inventory on a monthly,
quarterly, or annual basis. The exact period depends on an organization’s needs and business
activities.

Pros: It’s relatively simple and easy to manage for smaller inventories. It doesn’t require any
specialized technology and equipment, making it easier to train individuals in.

Cons: It becomes a lengthy process for companies with expansive inventories. The manual
counting process is also highly prone to human error.

Best for: The periodic system is ideal for small companies with minimal inventory. It also
works best for businesses selling niche products and counting larger-sized goods.

Perpetual Inventory Control System

The perpetual inventory control system provides an accurate count of inventory levels in real-
time. It utilizes technology, such as barcodes and Radio Frequency Identification (RFID)
tags, for tracking products. The information is then logged in a centralized database that
warehouse managers can easily access.

Pros: This method removes the need for manual counting. It gives warehouse managers a
snapshot of their inventory counts over a specific period of time. Doing so drives data-driven
decision-making for sales, ordering, and inventory management.

Cons: An inventory control software can be expensive to maintain. Moreover, it might not
capture discrepancies due to product theft, loss, damage, and scanning errors.

Best for: The perpetual system works best for companies with multiple locations. It’s also
great for businesses maintaining large inventories.

Inventory Control Techniques

Inventory control involves various techniques for monitoring how stocks move in a
warehouse. Four popular inventory control methods include ABC analysis; Last In, First
Out (LIFO) and First In, First Out (FIFO); batch tracking; and safety stock. This section
explains how each of these methods functions and how they can support your business.
 Inventory Control Techniques | SafetyCulture

ABC Analysis

ABC analysis in inventory control classifies stocks based on their importance, price, and
sales volume. These criteria determine the number of items a company will bring to the
market.

Just as its name suggests, it consists of the following categories:

 A class – expensive, high-class items with tight controls and small inventories
 B class – average-priced, mid-priority items with medium sales volume and stocks
 C class – low-value, low-cost items with high sales and huge inventories

Applying the ABC analysis of inventory control allows businesses to minimize the costs of
carrying products while maximizing their stock returns.

LIFO and FIFO

Both inventory control techniques organize how inventory items move in and out of the
warehouse based on their arrival date. Priority will depend on the type of products available
in the storage facility.

Using the LIFO method, the warehouse puts out the most recent batch of items to the
customers first. Doing so prevents products from going bad when delivered to the market.
But with the FIFO technique, the warehouse prioritizes older stocks for processing and
shipping. This way, they can keep the products fresh when the customer receives them.

Batch Tracking

Batch tracking is also a great way of organizing stock items in a warehouse facility. In this
method, goods of the same production date and materials are grouped together. Doing this
helps warehouse managers keep track of the following information:

 Where the items come from

 Where the goods are heading
 When the items might expire

Safety Stock

Safety stock involves having an additional set of goods on hand as a preventive measure for
the market’s volatility. The amount should be over the average demand or use of the product.

It acts as a safety net, should customer demand go above the projected amount. It also covers
them for any uncertainty in supply performance, such as shipping delays.

Tips on Getting Started

After discussing the types and techniques employed in an inventory control system, it’s time
to put those measures into practice. Here are some tips to help you kickstart your inventory
control process.

 Start with an inventory control plan – This plan should address the movement of goods
from production to sales and removal from the inventory database.
 Put it into practice – Carrying out the inventory control plan includes establishing metrics
and forecasts for succeeding months. You can also adjust your stock management strategy
as needed.
 Consistency is key in labeling products – Find a system that works for your company and
stick to it. Consider looking into barcodes, RFIDs, and Stock Keeping Units (SKUs).
 Establish reorder points – This practice systematically replenishes your stock items at set
periods so you can take better control of your lead time. The ABC analysis method is a
helpful tool for carrying this out.
 Always keep critical items in stock – Identify which goods are critical for your business and
ensure they never go out of stock.
 Review product shipments – Read over the packing slips and check products for any damage
to prevent inventory loss.
 Perform warehouse audits regularly – Warehouse personnel can run through their stocks
for spoilage, theft, and potential human errors. Doing so ensures that the accounting team
receives accurate information about the counts and costs of your inventory. It’s best to use a
digital inventory checklist to simplify this process.

Explore our Free Inventory Templates

See how digital checklists simplify business processes with just a tap.
 View now

How Training Can Help You Implement Best

Practices
Apart from having clear and comprehensive operational manuals for inventory control in
place, it’s vital that they’re effectively communicated to your workers. This is where the need
for training comes in.

With good inventory control training, you can effectively reinforce the best practices outlined
in your operating manuals and Standard Operating Procedures (SOPs). And on top of higher
quality work and better productivity, it can also help your workers become more aware of
potential issues and more proactive in preventing mishaps along the way.

Say goodbye to the days of boring training and operating manuals. With SafetyCulture
(formerly iAuditor)’s Training feature, you can easily transform your work instructions into
training slides that are interactive, visually appealing, and easy to understand.

But that’s not all – you can also make this training accessible to your team using their
preferred devices. And with SafetyCulture Training’s offline access, they can brush up on
their skills even without an internet connection.

Maximize Your Warehouse Inventory with

SafetyCulture
SafetyCulture as an Inventory Control Software

As an inventory control software, SafetyCulture assists warehouse managers in improving

their inventory control system. It allows them to conduct warehouse audits to check if any
product is lost, stolen, or in bad conditions. This platform also reduces human error through
digitized inventory tracking systems.

With SafetyCulture, you can perform the following actions:

 Edit and fill out pre-made digital checklists for your warehouse checks
 Schedule regular warehouse inspections automatically
 Track goods in your inventory using a handheld mobile device
 Monitor trends in inventory controls with the powerful analytics dashboard
 Proactively fill in missing, damaged, or spoiled stocks using Actions
 Train employees on effective inventory control practices and standardize best practices in
the organization.
 Manage your organization’s assets to ensure their safety and quality for warehouse
operations

Get started using our selection of inventory checklists for your business needs!

• Perpetual inventory system

 A perpetual inventory system is a method of tracking and managing inventory in
real-time, providing continuous updates on stock levels, transactions, and changes in
inventory. It contrasts with periodic inventory systems where stock is only
periodically reviewed at set intervals. Here are the key features and components of a
perpetual inventory system:

1. Real-Time Tracking:
 Continuous Updates: Perpetual inventory systems use technology such as
barcode scanners, RFID, or point-of-sale (POS) systems to update inventory
levels instantly with each transaction.
 Immediate Recognition: Inventory changes, such as sales, returns, or new
arrivals, are immediately reflected in the system.
2. Accuracy and Precision:
 High Accuracy: Since transactions are recorded in real-time, perpetual
systems tend to provide a high level of accuracy in inventory data.
 Reduced Errors: Minimizes errors associated with manual data entry or delays
in updating records.
3. Automated Processes:
 Automation: Often integrated with other business systems like Enterprise
Resource Planning (ERP) or Warehouse Management Systems (WMS),
automating many inventory-related processes.
 Workflow Integration: Seamless integration with sales, purchasing, and
order fulfillment processes.
4. Transaction History:
 Detailed Transaction Records: Maintains a comprehensive history of all
inventory transactions.
 Traceability: Enables tracking of individual items, including their movement
within the warehouse and any changes in status.
5. Visibility into Stock Levels:
 Instant Access: Provides real-time visibility into current stock levels.
 Stock Alerts: Alerts can be set up for low stock levels or stockouts to trigger
timely reordering.
6. Inventory Valuation:
 Cost of Goods Sold (COGS): Helps in calculating COGS accurately as the
system continuously updates the value of goods sold.
 Financial Reporting: Facilitates accurate financial reporting and valuation of
the inventory on the balance sheet.
7. Demand Forecasting:
 Data for Analysis: The system generates historical data that can be used for
demand forecasting and strategic decision-making.
 Trend Analysis: Enables businesses to analyze sales patterns and make
informed decisions regarding inventory levels.
8. Customer Service Improvements:
 Order Fulfillment: Enhances order fulfillment processes by providing accurate
and real-time information on product availability.
 Reduced Stockouts: Minimizes the risk of stockouts, leading to improved
customer satisfaction.
9. Efficient Reordering:
 Automatic Reordering: The system can be set up to automatically generate
purchase orders or reorder points based on predefined criteria.
 Prevent Overstocking: Helps prevent overstocking by aligning order
quantities with actual demand.
10. Inventory Auditing:
 Continuous Auditing: Perpetual systems facilitate continuous auditing of
inventory since the system is always up-to-date.
 Efficiency in Audits: Simplifies the audit process and reduces the need for
extensive manual counts.

Implementing a perpetual inventory system requires an investment in technology

and integration with existing business processes. However, the benefits, including
accuracy, efficiency, and improved decision-making, make it a valuable tool for many
businesses, particularly those with high inventory turnover and a need for real-time
insights.

What Is a Perpetual Inventory System?

A perpetual inventory system is a program that continuously estimates your
inventory based on your electronic records, not a physical inventory. This
system starts with the baseline from a physical count and updates based
on purchases made in and shipments made out.

Max Muller, president at Max Muller & Associates LLC and Author
of “Essentials of Inventory Management”, says, “Perpetual inventory
management systems keep track in real-time. It uses software to follow the
rules, keep the system up-to-date, and it works great. I recommend doing
3D-counting, where you count cross-sections often enough to account for
the whole over time. You could consider this perpetual, but it would need to
be software-driven and follow the rules or do a variation.”

Inventory management software and processes allow for real-time updating

of the inventory count. Often, this means employees use barcode scanners
to record sales, purchases or returns at the moment they happen.
Employees feed this information into a continually adjusted database that
tracks each change. The automatic, or perpetual, updating of the inventory
is what gives the system its name and differentiates it from the periodic
approach.

In recent years, advances in inventory management software and the

ability to integrate it with other business systems have made perpetual
inventory a more practical and powerful option for many businesses.
Additionally, cloud-based inventory management systems are often real-
time, a key element of a perpetual inventory system.

The real value of perpetual inventory software comes from its ability to
integrate with other business systems. For instance, real-time inventory
information is vital for the financial and accounting teams. Inventory can
make up a large part of your stated assets, so integrating inventory
management with financial systems helps ensure accurate tax and
regulatory reporting.

With access to real-time data, salespeople can provide accurate shipping

information, manage expectations and provide a better customer
experience that directly impacts your reputation. Integrating the inventory
software with marketing systems provides that team with a current
snapshot of what is selling and what is not. Marketers can set current
information in the context of historical trends to understand customer
behavior and position the company to meet anticipated customer demand.

What Is the Periodic Inventory System?

The periodic inventory system, also called the noncontinuous system, is a
method companies use to account for their products. Based on a specified
accounting period, periodic inventory does not keep a continuous tally of
goods, purchases, sales and their associated costs.

This system works by the company accountant recording all purchases into
a purchase account. The company then makes a count of the physical
inventory and the accountant shifts any balance in the purchases into the
inventory account. Next, the accountant adjusts the inventory account to
match the cost of the ending inventory. A hallmark of a periodic system is
the physical count of goods. This number is critical since the company does
not track unique transactions. Whether the company performs it weekly,
monthly, quarterly or annually, this inventory kicks off the records
reconciliation.

In a periodic system, companies calculate Cost of Goods Sold (COGS)

directly after a physical inventory, as they do not keep it on a rolling basis,
nor do they update it continuously after each transaction. They do not keep
an inventory account in a periodic system since they debit all purchases to
a purchase account. Once the period is complete, the company adds the
purchase account totals to the inventory’s beginning balance. Then, the
company can also compute the cost of goods available for sale for the new
period.

Perpetual vs. Periodic Inventory Systems

Perpetual and periodic systems require different tools and procedures
around how employees document inventory, although they can be
complementary. In a perpetual system, employees track the products all
the time. In a periodic system, employees record products only at specified
intervals.

Clearly, a perpetual system is more complex than periodic systems, as

there are more records for the software and employees to maintain. Muller
suggests, “When considering the system that you want to use, the
fundamentals are the same — regardless of your approach. Even with the
most advanced software, if there is a disconnect within the fundamental
system, you are just speeding up your mistakes. You would make
decisions about the system based on the nature of your products, their
perishability and their physical handling: whether they were large or small
and how much space they consume. The nature of the product also
depends on how your company receives and stocks it. Some goods are
unitized: They have small parts and are broken up into individual bins”.
 Muller shares an example: “Years ago, I worked with a company that had
no experience with frozen chicken. They would unload the chicken on the
hot dock when they were checking it in. As a result, and even though it was
still edible and safe, it became very unsightly after cooking. They learned to
bring the stock into the freezer and then perform the check-in to their stock.
They had to adjust their procedures and systems based on their product’s
needs”.

Additional differences between the perpetual and periodic systems:

 Updating Your Accounts:

In a perpetual system, updates to the general ledger and inventory ledger
are continuous with every transaction. In a periodic system, updates to the
general ledger only occur when there is a physical count, not based upon
transaction.

 Calculating Cost of Goods Sold (COGS):

Under a perpetual system, the software system maintains a running tally of
transactions, so it is always able to provide COGS. A periodic inventory
system calculates COGS after conducting a physical inventory, in a lump
sum at the end of an accounting period. It is not possible to calculate a
precise COGS before the end of the accounting period.

 Record Transactions:
In a perpetual system, it is not possible to maintain records manually,
because there could be thousands of transactions to track; a perpetual
inventory system requires software. A periodic system, however, does not
require software. You could manually track your inventory in a periodic
inventory system.

 Cycle Counting:
Cycle counting is when businesses count portions of their inventory with
the intent of completing a full inventory over a time cycle. They do not count
their entire inventory at once, but they do make small adjustments based
on what they count. Also called sampling, businesses only use cycle
counting in a perpetual system. They do not use cycle counting under a
periodic inventory system because they are not able to set a baseline.

 Recording Purchases:
 In a perpetual system, you record purchases in the raw materials inventory
account or the merchandise account. In a periodic system, you log
purchases into the purchases asset account, without adding any unit-count
information.

 Performing Investigations:
In a perpetual system, transactions are available at a very detailed level. As
such, you can conduct investigations into inventory-related errors easily. In
a periodic system, these investigations are more complicated, because the
system aggregates data at a high level. It is difficult to use this data to
pinpoint errors in the process.

Even though GAAP standards say that either perpetual or periodic systems
are appropriate for any business, each is more suited to different-sized
organizations. Overall, perpetual systems are more suited to companies
that have high sales volume or multiple retail locations because it is a
timelier system. Periodic systems could hinder decision-making for these
types of organizations. Periodic systems are more suitable for businesses
not affected by slow inventory updates. These include emerging
businesses, ones that offer services or companies that have low sales
volume and easy-to-track inventory. Companies whose staff struggle with a
perpetual system, for instance those with seasonal help, would also benefit
from maintaining a periodic system. As their business grows, they can
always institute perpetual inventory.

Not everyone agrees it’s wise to use periodic systems when you do not
have a lot of products. Muller echoes the sentiment: “Periodic inventory
systems are terrible. During the annual inventory, you go out and do a
count. The chances are excellent that the paper life of the item is not going
to match its real life (shelf count). So, you have a disconnect. If you only
take inventory once a year, you do not know when the disconnect
happened. There are so many issues between the beginning and end of a
product’s life, there is no way to find the errors in a periodic system. We
should be able to go back and find items shortly after problems happen to
help improve inventory. Companies correct records and fix imbalances and
move on — it is a snapshot in time. The problems will then reassert
themselves almost immediately. For accounting purposes, though, it is
important to perform this exercise, unless you have a mature cycle count
 program. Auditors will take a mature cycle count program as an annual
physical count.”

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The Advantages and Disadvantages of

Perpetual Inventory
Perpetual inventory allows for more real-time inventory tracking, making it
superior to other methods. However, the system requires consistent record-
keeping and monitoring and is more expensive to set up than other
methods.

Perpetual inventory can save you money in these ways:

 There is no need to close facilities regularly to perform physical inventories,

 Data from scanned barcodes help you forecast stock,
 You can account for all transactions, providing complete accountability of
your products.
Even though perpetual inventory is superior, it is not perfect. While there is
a constant, automatic product tracking system, there are still ways to lose
positive inventory control.

The disadvantages of using perpetual inventory include:

 You must still perform an annual inventory to synchronize your data,
 You must input every transaction, which requires more consistent record-
keeping and monitoring,
 Perpetual inventory systems have higher setup costs than other methods
since they require software and training.

Who Uses a Perpetual Inventory System?

Large businesses with enormous quantities of inventory favor perpetual
inventory systems. Perpetual inventory systems can also be ideal for
emerging and small to medium-sized businesses looking for scalability.

Huge businesses have difficulty performing the cycle counts that are
necessary for a periodic system. Further, an organization with several retail
locations may find it is easier to control inventory when there’s a regularly
updated database of products. Take, for example, a tool retailer that has a
customer looking for a specific type of wrench, one that is rarely requested
and sold. It has six locations in the local area. Using a perpetual system, it
has real-time information about which site may have one in stock so the
customer can go get his wrench quickly instead of driving from store to
store looking for it.

Other businesses that need perpetual inventory include those that

specialize in drop shipping, where the manufacturers ship directly to
customers or those who specialize in trade and distribution. In these
businesses, the inventory is always on the move. Also, there are constant
returns and exchanges. Understanding which stock is available at a given
time requires constant updates or a perpetual system.

When Would You Use a Perpetual

Inventory System?
Perpetual inventory systems are helpful for those who always need to
understand margins and profitability. A large business with many products
or a company that wants the ability to scale an emerging business over
time would use a perpetual inventory system.

Experts think perpetual inventory systems are the future, especially for
product companies, as they are getting cheaper and more accessible for
even small businesses to acquire and use. Muller explains, “The future of
this industry is leaning towards more real-time identification of products and
improving on everything having to do with transmitters in and on products.
Really, these are automatic forms of identification. It doesn’t matter where
you store it, you can find it”.

In a perpetual inventory system, software records changes into a sales

revenue account each time the company makes a sale or purchases new
inventory. This process of recording sales ensures that the accounting
records reflect accurate balances in the accounts affected. The software
also records the price charged. To record transactions in a perpetual
system, you must know the selling price, the purchase price and the
accounts affected. The selling price is what the customer pays for the item.
The purchase price is the costs associated with the product, including the
shipping, receiving and storage costs.

A typical journal entry would show which account the software debited and
which account the software credited for each transaction.

Cash Sales Journal Entry

Account Debit Cred

Cash 300

Sales Revenue 300 300

Total 300 300

How Is Inventory Tracked Under a
Perpetual Inventory System?
A perpetual inventory system tracks goods by updating the product
database when a transaction, such as a sale or a receipt, happens. Every
product is assigned a tracking code, such as a barcode or RFID code, that
distinguishes it, tracks its quantity, location and any other relevant details.

When new products enter a business, employees scan them (along with
their details) into the computer system. Without a computerized inventory
system, it would be difficult to track every transaction in a business
manually, especially in companies that sell many products. For example, a
retail big box store has thousands of products. Its supply chain provides
deliveries daily of additional goods that the employees then scan into their
database. If the product is new, the employee must add the details of the
product when they initially scan it. That additional information includes a
description, the product code or SKU and where customers will find it in the
store. If the store already carries the product, this scan updates the quantity
already in stock. When a customer buys one of these products, the
database lists one less product in its count. At any time, the store manager
can review the database to learn how much of that product is currently in
stock and whether they need to order more.

This system depends on proper inventory control procedures. For example,

the system needs to ensure that employees scan in any new inventory
promptly. Physical counts to reconcile the database are rare, but
necessary, since the true inventory count can become skewed over time
with theft, loss or breakage.

Formulas in Perpetual Inventory

Inventory management formulas can tell you when to order more inventory,
how much to order, the lead time needed before placing an order and how
much stock you require to keep in safety.

Economic Order Quantity (EOQ) Formula

Economic Order Quantity (EOQ) considers how much it costs to store the
goods alongside the actual cost of the goods. The results dictate the
optimal amount of inventory to buy or make to minimize expenses.

EOQ Formula

EOQ = √2DS/H, where,

D = Demand in units per year

S = Order cost per purchase

H = Holding cost per unit, per year

The Cost of Goods Sold (COGS)

When you sell products in a perpetual inventory system, the expense
account increases and grows the costs of sales. Also called the cost of
goods sold (COGS), the costs of sales are the direct expenses from the
production of goods during a period. These costs include the labor and
materials costs but leave off any distribution or sales costs.

COGS Formula

COGS = BI + P - EI, where

BI = Beginning inventory

P = Purchases for the period

EI = Ending inventory

Calculate the beginning inventory as whatever stock remains from the

previous period if you do not have a true beginning inventory. The
accounting period can be in months, quarters or a calendar year. The
COGS in a perpetual system is rolling and recalculated after each
transaction, but you can use the COGS formula to calculate it for a period.

This graphic shows the COGS formula over a designated time period.

Let’s say Ava, a product manager, wants to know if she is pricing generic
Acetaminophen high enough to leave a healthy profit margin. COGS is an
effective formula for setting prices on manufactured goods. If she
calculates the COGS as $10 per 100-capsule bottle, she will need to price
each bottle higher than $10 so her company can comfortably turn a profit.

Ava’s business uses the calendar year (starting on Jan. 1 and ending Dec.
31) for recording inventory. The company accountant valued the Jan. 1
beginning inventory of generic Acetaminophen at $49,000, or 4,900 bottles.
During the year, generic Acetaminophen costs the company $40,000 for
materials and labor. On Dec. 31, the company accountants valued the
ending inventory at $30,000.

COGS Formula

BI = $49,000
 P = $40,000

EI = $30,000

COGS = $49,000 + $40,000 - $30,000

= $59,000

Gross Profit
Ava can use the figure she calculated for COGS to make decisions about
the product. For example, she can use COGS to calculate the gross profit
her company made from generic Acetaminophen. Gross profit is simply the
product revenue minus COGS, or

Gross Profit

Gross Profit = Revenue - COGS

If the revenue for generic Acetaminophen was $113,000 last year, the gross income from it was:

Gross Profit = $113,000 - $59,000

= $54,000

If Ava needs to raise the product cost to make more profit or lower the cost
to make it more competitive in the marketplace, she now knows how it will
affect her company’s bottom line.

Gross Profit Method

In a perpetual system, you will sometimes need to estimate the amount of
ending inventory for a period when preparing financial statements or if
stock was destroyed. To calculate this estimate, start with the beginning
inventory and cost of purchases during the period.
Let’s say that you need to estimate the ending inventory from the current
month. The values you need to know to calculate this are the gross profit
as a percentage of sales, the total sales for the period, the beginning
inventory for the period and purchases for the period. As shown below in
the ledger, estimate the relative percentages of both COGS and gross
profit for your total sales. From there, solve for the cost of goods sold, and
then fill in the known values minus the COGS figure. The result should
provide an ending inventory estimate and how much to claim as the
bottom-line figure for this period.

Ledger to Calculate Gross Profit

Estimate Figur

Sales 100% $156,000.00

Cost of Goods Sold (COGS) 55% $85,800.00

Gross Profit 45% $70,200.00

Begin Inventory $45,000.00

Purchases $67,800.00

Cost of Goods Available for Sale $112,000.00

Minus COGS $85,800.00

Estimated Ending Inventory $26,200.00

What Is FIFO Perpetual Inventory
Method?
FIFO (first-in, first-out) is a cost flow assumption that businesses use to
value their stock where the first items placed in inventory are the first items
sold. So the inventory left at the end of the period is the most recently
purchased or produced.

A cost flow assumption is an inventory accounting method that uses the

original value of products from the beginning inventory of a period and
purchases of new inventory during that period to calculate the value of the
ending inventory and the cost of goods sold. The three cost flow
assumptions that businesses use for this are FIFO, LIFO, and the
Weighted Average Cost (WAC).

Where Cost Flow Assumptions Fit In

In a perpetual system, the inventory account changes with every

transaction. Companies debit their inventory account with the cost of the
merchandise each time they purchase or produce inventory and when they
sell inventory to customers. The perpetual inventory software updates the
inventory account with each transaction. With each sale, the software also
updates the COGS account with a debit. As an example, see the sample
FIFO perpetual inventory card below. The retail sales for this product in this
company were $25,000 from Jan. 1, 2019 to Jan. 15, 2019.

Inventory Card

Purchases Sales B

Unit Total Unit Unit Total U

Date Activity Units Units
Cost Cost s Cost Cost C

Begin
1/1/2019 600 5.
Inventory

1/3/2019 Sale 400 5.00 2,000.00 200 5.

200 5.
1/4/2019 Purchase 1,600 6.00 9,600.00
1,600 6.

1,000.00
4,800.00
200 5.00
1/7/2019 Sale 800 6.
800 6.00

5,800.00

800 6.
1/10/2019 Purchase 1,000 6.00 6,500.00
1,100 5.

1/15/2019 Sale 600 6.00 3,600.00 200 6.

1,000 6.
 Purchases Sales B

Unit Total Unit Unit Total U

Date Activity Units Units
Cost Cost s Cost Cost C

This card shows the starting inventory, sales, purchases, prices and
balances. Under a perpetual system, inventory records for this product are
continually changing. When the company sells merchandise, the perpetual
software records two transactions. First, the software credits the sales
account and debits the accounts receivable or cash. Second, the software
debits the COGS for the merchandise and credits the inventory account. In
a periodic system, accounting does not perform this second step.

From the perpetual FIFO inventory card above, you can calculate the cost
of ending inventory as the total cost balance from the last row, or $7,700.
Calculate COGS by adding the total cost column in the sales category, or
$2,000 + 5,800 + $3,600 = $11,400. Finally, you can calculate the gross
profit as the total retail sales minus the costs of goods sold, or $25,000 -
$11,400 = $13,600.

A company may prefer using a FIFO system when it’s trying to show its
largest possible profit on its financial statements for investors, lenders and
stakeholders. A FIFO system shows a lower COGS expense and a higher
net income.

What Is LIFO Perpetual Inventory

Method?
LIFO (last-in, first-out) is a cost flow assumption that businesses use to
value their stock where the last items placed in inventory are the first items
sold. So the remaining inventory at the end of the period is the oldest
purchased or produced. In a perpetual LIFO system, the last costs
available at the time of the sale are the first that software moves from the
inventory account and debits from the COGS account. See the example
LIFO perpetual inventory card below to get an idea of how it works. The
retail sales for this product in this company were $25,000 from Jan. 1, 2019
to Jan. 15, 2019.

From the perpetual LIFO inventory card above, you can calculate the cost
of ending inventory as the total cost balance from the last row, or $7,200.
You can calculate COGS by adding the total cost column in the sales
category, or $2,000 + 6,000 + $3,900 = $11,900. Finally, you can calculate
the gross profit as the total retail sales minus the costs of goods sold, or
$25,000 - $11,900 = $13,100.

During periods of inflation, a LIFO system may be more appropriate for

companies that do not wish to pay as much in taxes, because it will show a
higher COGS expense and a lower net income. Therefore, your company
has a lower tax liability in a LIFO system, because businesses get taxed on
profit. The Internal Revenue Service allows companies to use LIFO in their
tax accounting, even when they use FIFO in their financial statements.

What Is the Weighted Average Cost

Perpetual Inventory Method?
The Weighted Average Cost (WAC) is the cost flow assumption businesses
use to value their inventory. WAC is the average cost of goods sold for all
the inventory. Also called the moving average cost method, accountants
perform this differently in a perpetual system as compared to a periodic
system.

The goal of using the WAC is to give every inventory item a standard
average price when you make a sale or purchase. In a perpetual system,
you would not calculate the WAC using a formula for a specific period. You
can use WAC to calculate an average unit cost, COGS for a period and
ending inventory for a period. For example, Ava wants to figure out the
average cost to assign for Acetone repackaged in her company’s
warehouse. She will use this information to calculate the ending inventory
and COGS for the period. Her company uses a perpetual system. See the
ledger below for transactions for Acetone in Jan. using a weighted average.
This ledger mimics that of a software ledger in a perpetual system.

January Perpetual Ledger of Sales and Purchases for Acetone

Number of Units Actual Unit Cost Tota

Beginning Inventory 300 $10.00 $3,000

Purchase 200 $15.00 $3,000

500 $12.00 $6,000

Sale 300 $12.00 $3,600 (CO

200 $12.00 $2,400

Purchase 100 $17.00 $1,700

300 $13.67 $4,100

Sale 250 $13.67 $3,418 (CO

50 $13.67 $648

Purchase 300 $20.00 $6,000

Ending Inventory 350 $6,684

Notice the ledger above calculates the actual unit costs (in red) as a
dividend of the number of units and total actual cost. The ledger adds the
beginning inventory to the purchased inventory (500 units). The ledger then
adds the beginning inventory cost to the purchased inventory cost ($6,000)
 to come up with a new unit cost of $12.00 for future sales. The next entry
shows a sale made with this calculated unit cost. This sale enables you to
calculate the COGS for this transaction. The ending inventory is just an
arbitrary stopping point based on the period you are reviewing. For this
ledger’s period, you can also calculate the total COGS as $3,600 + $3,418
= $7,018.

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Your Inventory
Properly managing inventory can make or break a business, and having
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decision-makers know they need the right tools in place so they can
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In This Article
 What Is Perpetual Inventory?
 What Is a Perpetual Inventory System?
 What Is the Periodic Inventory System?
 Perpetual vs. Periodic Inventory Systems
 The Advantages and Disadvantages of Perpetual Inventory
 Who Uses a Perpetual Inventory System?
 When Would You Use a Perpetual Inventory System?
 How Is Inventory Tracked Under a Perpetual Inventory System?
 Formulas in Perpetual Inventory
 What Is FIFO Perpetual Inventory Method?
 What Is LIFO Perpetual Inventory Method?
 What Is the Weighted Average Cost Perpetual Inventory Method?
 NetSuite Can Help Provide Visibility Into Your Inventory

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Benefits of an Advanced Warehouse Management System

• Reduced inventory costs
• Reduced labour costs
• Increased storage capacity
• Increased inventory accuracy
• Complete process control
• Advanced functionality
• Operational transparency
 • Integrated labour management

Features Influencing the Choice of Warehouse Location

• Desired customer base
• Proximity to carrier services
• Storage requirements
• Workforce availability
• Longevity

Factors Influencing Warehouse Design and Layout

• Product
• Space
• Equipment
• Circulation of goods
• Personnel

Aspects Considered When Designing Warehouse Layouts

• Make most of available space
• Reduce handling of goods to a minimum
• Provide easy access to the stored product
• Ensure highest rotation ratio
• Offer maximum flexibility in product positioning
• Control amounts stored

10 Key Features of a
Warehouse Management
System (WMS)
A Warehouse Management System (WMS) is the heart of many fulfilment operations. The
software is designed to optimise warehouse operations, allowing you to maximise the use of
your space and resources, ultimately allowing you to fulfill more packages on time in full.

A good WMS can provide insight, enabling you to make key decisions when expanding and
growing your business, but with many different options on the market, the process of
choosing the right WMS for your business can be daunting.
 With that in mind, our very own Mintsoft product experts have put together 10 key features
of a good Warehouse Management System as well as looking at how to pick the one that’s
right for your business.

Ten key features of an effective warehouse management system:

1. Inventory Management
2. Warehouse Location Management
3. Goods In Processes
4. Order Management
5. Shipping Management
6. Order Picking and Packing
7. Returns Management
8. Integrations
9. Mobile Functionality
10. Reporting and Analytics

10 Key Features of a
Warehouse Management
System
1. Inventory Management

A WMS should provide real-time tracking of inventory levels, statuses and location within
the warehouse. Movement of inventory should be logged to provide traceability and insight,
this starts at with goods into the warehouse, encompasses all movement within the
warehouse and ends with goods out.

Key inventory management features include:

 Real-time inventory level and status

 Support for Stock Keeping Units (SKU)
 Attribute logging for Serial Numbers, Batch and date information
 Barcode scanning to maintain stock accuracy
 Inventory allocation to orders, replenishments and warehouse tasks (FIFO,FEFO)
 Inventory movement reporting
 Stock take functionality

2. Warehouse Location Management

A key feature for a WMS is the ability to uniquely identify and classify the space in your
warehouse. Depending on the size of the operation, it may provide support for unique
location IDs across multiple warehouses or internal warehouse zones with many different
use cases like pick faces, bulk storage, goods in or out locations and controlled storage
(Chilled, frozen, high security).
 A WMS can provide:

 Unique IDs for each location taking into account the aisle, column and shelf
 Support for locations across multiple warehouses or warehouse zones
 Barcode scanning of locations for inventory control and traceability
 Location types (Bulk, Pick etc)
 Location contents and inventory traffic reporting
 A warehouse map allowing visibility of locations and contents at a high level
 Access control for security, health and safety and loss control

3. Goods In Processes

Managing goods in efficiently can be one of the biggest challenges for a warehouse. A
WMS should provide visibility of upcoming deliveries, including delivery date and time as
well as the size of the delivery to allow you to forecast the resources needed to handle it
efficiently. Ideally a staged receipt should also be supported allowing larger shipments to be
quickly received for subsequent put-away minimising the time a loading bay is occupied. A
WMS should also support blind receipt so that even unexpected deliveries can be properly
logged into the system.

Features to consider include:

 Support for advanced shipment notifications (ASN)

 Delivery calendar to show upcoming shipments
 Serial Shipping Container Codes GS-1 label support
 Staged receipt and put-away actions
 Suggested put-away logic to optimise the use of available space

4. Order Management

A modern warehouse has to deal with order input from multiple sources. Omni-channel
systems allow receipt of orders from a variety of online store fronts, social commerce
platforms, from CSV upload, API/EDI connections, EPOS or manual input. A WMS allows
you to manage your orders from one platform allowing you to allocate to all your orders and
back orders from one inventory source, automate for accuracy and speed of operation, and
track from receipt to delivery. The business can also report on key order data to allow you to
make key decisions through data analytics and forecasting driving efficiency in operations.

A competent order management system should include:

 A central point for managing your orders in bulk

 Able to receive orders, provide inventory and despatch updates across multiple channels
 Backorder management
 Order statuses to allow automation, and drive warehouse action
 Order detail amendment and logging
 Query and response logging
 Order tracking
 Automation rules for common actions
 Reporting and analytics
 5. Shipping Management

A WMS should be capable of automating aspects of a warehouses shipping requirements.

Automated courier and service selection considering the order and package details,
destination and generate any required documentation. Integration to couriers will allow for
the automation or bulk creation of shipping labels and return of tracking information.

The key elements of a shipping management solution in a WMS are:

 Automated service selection

 Document production
 Integration and shipping label generation
 Automated receipt of tracking information
 Reporting and analytics

6. Order Picking and Packing

Depending on the volume of orders being processed and the types of product being handled
by the warehouse different pick and pack processes may need to be followed. You may
wish to pick specific orders depending on shipping or order details, pick multiple orders to a
cage in bulk or use tote trollies. The WMS should have the capability to assign the relevant
picking type to each batch of orders. When packing, a WMS should offer the ability to
double verify picked items and attributes as well as generate any required paperwork like
despatch notes, customs documentation and packing lists.

Key functions a WMS will support for picking and packing :

 Support for multiple different pick types

 Barcode scanned pick verification
 Walk sequencing to maximise efficiency
 The ability to skip damaged or missing items
 Double verification on pack
 Document generation
 Reporting and analytics

7. Returns Management

An inevitable part of fulfillment is returns management. A WMS needs to provide a clear

efficient returns process both against an order and returns received blind. Returns
management processes should generate any documents required, log the returned items
and their condition and provide options to exchange or refund before inspection of the
returned goods and lastly preparation for restock or scrappage.

Key functions to look for in returns management are:

 Return of items against an order or blind receipt

 Logging of reason for return and return actions (refund or exchange)
 An inspection process with options to restock or scrap
 Reporting and analytics

8. Integrations

We have touched on order and courier integrations but you may also wish to integrate to
other elements of you ERP software solution such as a finance management system or
CRM. A WMS may have standard integrations to common platforms but an open
API allowing for custom integration is also an important factor to consider.

A WMS typically has the following key integration functions:

 Prebuilt integrations to popular order sources and couriers

 Integration options for finance and CRM software solutions
 Integration to assembly and manufacture solutions
 An open API for custom integrations not supported as standard
 Integration error reporting

9. Mobile Functionality

Mobile functionality is typically thought of in regards to picking and tasking allowing users to
scan barcodes for SKUs and Warehouse Locations when completing tasks to log for
traceability and ensure efficiency of operation and accuracy. With the rise of cloud-based
WMS solutions and the trend in increasing warehouse size being able to access the full
features of a WMS from a tablet or laptop while on the move should also be a consideration.

Key mobile functions to be aware of are:

 Mobile barcode scanning for goods in, picking, warehouse tasks and returns
 Internet dropout protection
 Mobile access to a cloud-based system

10. Reporting and Analytics

A WMS needs to provide both real-time data reporting and trend based analytics on all
aspects of your warehouse. This allows users to monitor KPIs, SLAs and make informed
decisions to optimise operations. More recently, forecasting driven by artificial intelligence
has been employed to suggest required inventory and resource levels in advance of peak
trading periods.

A Warehouse management systems reporting capabilities may include:

 Real time reporting on key operational data like inventory, stock movements/adjustments,
outstanding orders and daily despatch reports
 Trend based analytic data logged over time to allow analysis for optimisation and
forecasting
 AI driven forecasting to assist in informed business decisions
 Custom reporting options
 Report scheduling
 Management System
Ultimately the needs of your business will determine which features are the most important
and the level of granularity required. By considering the types of product you will be
handling, your key performance indicators and service level agreements, and your users
and their required levels of access against the features detailed above you will have a good
basis to choose the WMS that is right for you.

If you need a little more guidance, read our guide on how to choose a warehouse
management system , or if you’re ready to consider the cost of a new WMS, please read our
guide on how much a warehouse management system should cost.

We’d be happy to show you all of the features that Mintsoft’s WMS has to offer, please book
a call with one of our experts if you’d like to see more about Mintsoft.
Advanced Warehouse Management systems (WMS) play a crucial role in
optimizing and streamlining warehouse operations. The key features you've
listed provide an overview of the functionalities that contribute to the
efficiency and effectiveness of such systems. Let's delve into each feature:

1. Workflows:
 Advanced WMS supports customizable workflows that define the
sequence of tasks and activities within the warehouse. This ensures a
structured and efficient order fulfillment process.
2. Picking and Packing:
 Efficient picking and packing features enable the system to optimize
the selection and packaging of items based on various criteria such as
order priority, location, and packaging requirements.
3. Wave Processing:
 Wave processing involves grouping and processing multiple orders
together to maximize efficiency. This feature helps in managing and
optimizing order picking and processing in batches or waves.
4. Inventory Counting:
 Advanced WMS facilitates regular and accurate inventory counting
through automated or manual processes. Real-time visibility into
inventory levels helps in minimizing errors and stockouts.
5. Containerization:
 Containerization features involve the efficient utilization of storage
containers. This includes optimizing the placement of items within
 containers to maximize space utilization and minimize unnecessary
movements.
6. Mobile Communication:
 Mobile communication features enable warehouse staff to stay
connected and access the WMS using mobile devices. This allows for
real-time data entry, tracking, and communication, improving overall
responsiveness.
7. Material Handling:
 Integration with material handling equipment and systems allows for
the seamless movement of goods within the warehouse. This can
include automated guided vehicles (AGVs), conveyor systems, and
other handling technologies.
8. Support for Cross-Docking:
 Cross-docking involves directly transferring goods from inbound to
outbound without the need for storage. Advanced WMS supports
efficient cross-docking processes, reducing storage time and
speeding up order fulfillment.
9. Sales Order Return Management:
 This feature helps manage the return process efficiently. It includes
features like return order creation, inspection, restocking, and
updating inventory levels accordingly.
10.Enhanced Reservation Hierarchy:
 The reservation hierarchy ensures that stock is allocated appropriately
based on priorities and rules. Enhancements in this area allow for
more sophisticated rules and greater flexibility in managing inventory
reservations.

These features collectively contribute to the overall effectiveness of

warehouse management, helping organizations improve accuracy, reduce
operational costs, and enhance customer satisfaction.

101 Guide to Warehouse Management

Systems (WMS)
Modula USA

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A warehouse management system (WMS) is a software solution that offers a

comprehensive view of your inventory and helps you manage your warehouse
operations.

It offers a wide range of benefits, from boosting picking accuracy by assigning your
warehouse operators the best picking routes to tracking inventory in real time.

We’ll explain all you need to know about warehouse management systems, from how
they work to different types, and share our intelligent and advanced WMS at Modula.

What Is a Warehouse Management System (WMS)?

A warehouse management system (WMS) is a software solution designed to help
manage inventory and integrate with different technologies, such as barcode
scanning, RFID technology, cloud computing and historical data and reporting.

A WMS provides your warehouse operators with full visibility into your inventory
while managing warehouse processes from receiving to distribution and data
collection.

Consider a WMS as the brain of the warehouse — the supervision and control system
that manages the different warehouse operations that take place within the entire
facility.

In fact, one of the main strengths of a WMS lies in its ability to integrate with other
business management systems, such as Enterprise Resource Planning (ERP) and
Document Management System (DMS) systems, to control or respond to requests
that take place along the supply chain.

In addition, a WMS can help you:

 Boost inventory accuracy

 Monitor your stock levels and item movement, thanks to advanced inventory
tracking
  Improve your warehouse operators’ efficiency in picking processes, leading to
faster order fulfillment and overall customer satisfaction
 Generate inventory, order and delivery reports

A WMS integrates with almost all DMS and ERP systems to optimize warehouse
processes, such as receiving, picking and putting away inventory

Warehouse Management System vs. Inventory

Management System
While a WMS monitors warehouse processes such as receiving and storing items,
picking and packing orders, an inventory management system (IMS) only tracks an
accurate record of each SKU in the inventory, regardless of its location.

A WMS uses inventory management strategies, such as ABC classification, to guide

warehouse operators on where inventory should be placed. This strategic approach
helps optimize the utilization of warehouse space, ensuring that high-demand
products are easily accessible.

In addition, a WMS can help your warehouse operator decide which inventory should
be sent out first, such as products that are close to their expiration date and help
manage labor in the warehouse by tracking employee productivity.
On the other hand, an IMS is a software solution that only tracks stock levels, orders,
sales and deliveries, when integrated with point of sale (POS) systems and shipping
and logistics systems.

An IMS can also help with demand forecasting to optimize inventory levels by
analyzing historical data and monitoring sales trends.

Lastly, another significant distinction between inventory management software and

warehouse management software lies in their capacity to integrate with other
software solutions.

While inventory management software typically serves as the initial step in

warehouse management, it doesn’t necessarily integrate into other warehouse
operations.

Warehouse management software, in contrast, easily integrates with various software

platforms, such us ERP systems, transportation management software or order
management systems, creating a synchronized and interconnected network of
processes.

How Does a Warehouse Management System Work?

Here’s a step-by-step overview of how a WMS typically works:

 The WMS records goods received by the warehouse operator: When

goods arrive at your warehouse, they are logged into the WMS by warehouse
operators, who scan barcodes or RFID tags on the SKUs to accurately track
each item’s quantity and location and quantity. This also ensures your
inventory is updated in real-time and documentation errors are minimized or
even eliminated.
 The WMS determines where each SKU should be stored: To make this
decision, the WMS considers factors such as the item’s size, weight and
frequency of use. For example, the WMS will instruct your warehouse
operators to place fast-moving items near shipping areas to boost efficiency.
Then, the location of each item is logged into the system.
 The WMS manages inventory: The WMS keeps track of the quantity,
location, and movement of every item in the warehouse. When items are
moved, picked, and sold, the inventory data in the WMS is updated in real-
time, providing accurate information.
 The WMS generates a digital picking list: When an order comes in, the
WMS utilizes the stored location data to guide your warehouse pickers along
the most efficient path throughout the warehouse to pick the items, reducing
the time traveled to pick the correct order.
  The WMS updates inventory in real-time: Once an order is picked and
packed, the WMS updates the inventory to reflect that the items have been
shipped.
 The WMS generates reports: The WMS collects data on your warehouse
activities, which can be used to generate reports. These reports can provide
insights into warehouse operations and help identify areas for improvement in
your process, such as optimizing storage space utilization, enhancing picking
and packing efficiency, and improving inventory turnover rates.

Here is how a warehouse management system works in six steps

Types of Warehouse Management Systems

There are different warehouse management systems you can choose from,
depending on your business needs and goals. The most common types of WMS
include:

1. Integrated WMS
An integrated WMS is a type of solution that is typically an add-on of your existing
ERP system. This comprehensive software system integrates core business processes
and functions, such as finance and accounting, customer relationship management
and project management.

An integrated WMS is designed to work with other business processes, such as

invoicing, sales and accounting, providing a comprehensive overview of your
business operations.

This centralized approach can help you save money over time by reducing the hassle
and cost of managing multiple warehouse tools.

2. Stand-alone WMS

A stand-alone WMS is a type of solution that is independent of other software

solutions and specifically manages warehouse operations, such as managing
inventory and generating reports.

A stand-alone WMS has limited functions for other aspects of your business, such as
accounting, order processing and reverse logistics.

This type of WMS is more affordable than an integrated WMS, making it an ideal
choice for startups.

4. Cloud-based WMS

A cloud-based WMS is a type of solution that is hosted on a remote server or data

stored on the cloud, which can be accessed from anywhere, at any time.

This type of WMS is usually subscription-based and managed by a third-party service

provider, allowing you to reduce upfront costs and ensure easy troubleshooting
when software updates or bug fixes occur.

5. Supply Chain Module WMS

This type of WMS is a specialized solution integrated into a larger supply chain
management system, offering seamless coordination between various supply chain
functions, beyond warehousing.

This WMS handles all aspects of the supply chain, including customer relationship
and vendor management, sourcing, manufacturing, and transportation.
This integration ensures real-time visibility across the entire supply chain, enabling
better decision-making and resource allocation. That’s why the majority of 3PLs
utilize it in conjunction with other warehouse management systems.

While the implementation of the Supply Chain Module WMS may require integration
efforts, it provides significant benefits in terms of end-to-end supply chain
optimization.

Common types of WMS include integrated WMS, stand-alone WMS, cloud-based

WMS and supply chain WMS

Benefits of a Warehouse Management System

All types of warehouse management systems provide different advantages, from
improving inventory security to gaining accurate demand forecasts.

Boost inventory accuracy

WMS solutions provide real-time updates and visibility into your inventory and stock
levels, preventing stockouts and overstocks.

Improve inventory security

Warehouse theft can occur in your facility if you don’t have the proper safety
protocols in place — even eCommerce giant Amazon isn’t safe from inventory theft.
WMS solutions often include features, such as setting access levels, employee
permissions, and tracking user activity to help prevent theft.

Achieve accurate demand forecasting

With comprehensive data collection and analysis, a WMS can help you accurately
forecast demand. By examining historical sales trends and seasonal demands, you
can predict future sales, plan inventory needs and prevent stockouts or overstock
situations.

Increase employee productivity

By optimizing warehouse processes such as picking routes and inventory location, a

WMS can significantly improve your employee’s productivity. It eliminates wasted
time traveling in the warehouse and helps your operators get more work done faster.

Boost order fulfillment

A WMS can optimize your order processing by ensuring accurate SKUs are picked
faster and sent out on time. This reduces the chances of costly returns and
cancellations and higher customer satisfaction.
Modula’s WMS for Advanced Inventory Visibility
At Modula, we provide automated storage solutions and warehouse management
systems that are designed to optimize space and improve picking and warehouse
inventory management operations across a wide range of industries.

Meet Modula WMS — our intelligent and complete end-to-end solution for your
business, built for operating Modula’s automated storage and retrieval systems. It
can also be used for traditional and manually operated warehouses as a stand-alone
software.

As one of the most advanced and user-friendly solutions available in the market, it
works well with most Document Management System (DMS) and ERP systems,
allowing tasks such as receiving, picking and storing products faster and more
accurately.

Our WMS gives you real time control and a bird’s eye view of your warehouse tasks,
thanks to a user-friendly PC interface.
Setting up is easy — all you need is a main computer that will act as the warehouse
server and additional computers for your staff to access the system.

After installation, the WMS is ready for use and can smoothly connect with any type
of corporate ERP system.

What Is the Modula WMS Used For?

The Modula WMS can manage each SKU or product code with accuracy by
connecting it to a specific compartment — space in a tray with dividers — of the
Modula storage system.

Thanks to its simple integration, from each of these compartments, the WMS can
manage and retrieve different information related to warehouse inquiries, such as:

 Maturity date
 Expiration date
 The status of individual SKUs, including storage status, validation status and
product status

With the Modula WMS, data management is efficient. Each item (even from a single
compartment) is always logged, including management status, picking and putting
away details.

The WMS is also efficient in the case of structured and complex operations, such as
inventory or order consolidation. When combined with different robotic peripherals
or accessories, the WMS can optimize warehouse operations (which, very often,
require significant time and human resources).

For example, order consolidation organized by the WMS can also take place on the
fly with picking solutions such as the picking cart — the items in an order are
consolidated while the order itself is being prepared, without intermediate phases.

The Modula WMS allows you to:

 Manage and monitor individual SKUs, record details, unique identifiers, SKU
movement and stock levels
 Improve order handling and monitor and prioritize orders
 Oversee product location and movement in your facility and create location
codes and labels
 Assign tasks to users, set their access and permissions and monitor their
activity
 Track system performance, identify and fix errors, produce reports and alerts
and analyze data
  Connect and exchange data with other systems and software via data input or
file transfer

The Modula WMS can manage each SKU or product code with accuracy by
connecting it to a specific compartment

Key Advantages of Modula’s WMS

Here’s what you can expect when you implement Modula’s WMS in your warehouse
operations:

1. Manage an Entire Storage Facility With a Single Modula WMS

License

With Modula’s Warehouse Management System (WMS), companies can efficiently

oversee and control all current and future Modula products using just one license,
regardless of model, size, capacity or individual functions. In addition, the Modula
WMS system can also manage manual areas.

2. Gain Full Control Over Multiple Storage Systems Located in

Different Company Areas
Modula’s WMS allows you to have complete visibility and control over multiple
storage systems across different company areas. Whether you have warehouses in
various locations or distribution centers, this centralized WMS enables you to
monitor and manage all operations from a single interface.

Let’s take an example of a company with several Modula units installed in different
areas:

 One Modula automated storage solution to store raw materials and parts
used in special manufacturing processes in the production area
 A Modula unit to store assembly parts or consumables
 A Modula unit for semi-finished or pre-assembled products
 A Module unit for finished products to be tested
 A Modula unit dedicated to finished products, already on pallets
 A Modula unit to store spare parts

With Modula’s warehouse management system (WMS), this company can manage all
these machinery simultaneously in a coordinated and precise manner.

Managing machinery simultaneously is important, as it allows each department

within the company to control its references following its own logic and based on
their department’s rules and processes.

3. Integrate the WMS Easily With ERP Systems

Modula’s WMS system is designed for seamless integration with your chosen ERP,
WMS or DMS, providing efficient management of orders and inventory between the
existing ERP and Modula’s automated storage systems.

There are three common ways to set up this integration:

 Data exchange through Web service (Rest API)

 File exchange (xml, csv, text files)
 Data exchange via ODBC (intermediate database)

The choice of the data exchange method depends on several factors, including the
client’s preference, the pre-existing warehouse management system, and familiarity
with protocols. Selecting the most suitable method ensures smooth communication
and optimized operations.

4. Install the WMS Easily in the Warehouse

Modula WMS has been designed to be simple and intuitive, even for individuals
without specific IT skills. As a result, the learning curve is faster.
After importing and defining the master data and product locations, operators can
access the control panel at any time and manage operations easily and efficiently.

In addition to standard reporting, the WMS can generate more detailed and specific
reports for individual machines or the entire installed system.

With just a few clicks, operators can — for example, discover the percentage of space
that could be further optimized, the actual volume occupied, the number of
operations performed, the count of recorded errors and many other additional
insights.

Modula’s WMS system is designed for seamless integration with your chosen ERP,
WMS or DMS

5. Manage Individual Items or SKUs in an Accurate and Timely Manner

Modula’s WMS offers precise control over individual items or SKUs. Operators can
accurately track and monitor the movement of each item within the warehouse,
ensuring efficient picking, packing, and shipping processes.

Each SKU can be managed with different logic, considering quantities and specific
units of measurement. For example, an item can be handled in packs of 6, 12, or
more, and counted in various units depending on specific needs.
This flexibility allows companies to efficiently control and manage products like water
or food, which can be counted as pallet units, individual pieces, or packages based
on storage and picking requirements.

With Modula’s WMS, companies can streamline their warehouse operations and
optimize inventory management, leading to smoother workflows and increased
productivity.

6. Manage Inventory as a Whole

When it comes to warehouse management, effectively managing the inventory is an

important task that demands precise information and data. Modula WMS software
offers the ideal solution to keep track of stock levels and create a comprehensive
record of the whole inventory in a warehouse.

Operators can access the location, status, and quantity of materials stored in the
warehouses at any given moment. In addition, all picking and replenishment
operations, along with their histories, are easily accessible with just a few simple
steps.

In addition, the WMS can generate precise and organized reports based on
individual references or entire groups of locations.

For manual checks, operators can request information through the console. The
process is quick and efficient: the Modula unit receives the information inquiry as if it
were a regular order and presents the tray with the requested items. The operator
can then count the products, confirming quantities and stock levels.

Ultimately, with Modula WMS software, companies can efficiently manage their
entire inventory from a unified platform.

The system provides comprehensive insights into stock levels, order statuses, and
replenishment needs, empowering warehouse managers to make data-driven
decisions and optimize inventory control, ultimately reducing holding costs.

At Modula, our easy-to-install and operate WMS provides you with real-time data,
helping your organization take control of your supply chain.

#WarehouseManagementSystem #InventoryManagement #WMS

#SupplyChainOptimization #ModulaWMS #thinkvertical #thinkmodula