What is warehouse logistics: basics and principles

An important component in production management (whether it is a large company or a small entrepreneur) there is warehouse logistics. Even a novice manufacturer, sooner or later, will face the situation, when the products produced by him are not placed in the home workshop. Then he will have to decide: where to store the goods, on what to bring it and take away, how to make this process as efficient as possible.

Definition of warehousing logistics

Warehouse logistics is part of the overall logistics. Therefore it is necessary to begin with definition of this concept. Logistics – it is rational flow management (material, human) in the production process. That, organization of the movement of goods from the producer of raw materials to the final buyer – this is logistics. Here you can get acquainted with the concept of transport logistics. At some stage, for various reasons, the product accumulates, begins to need storage, and then in shipment from the warehouse. so, warehouses and work performed on them – part, and very important, the whole process. so: Warehouse logistics – link of general logistics, is engaged in receiving goods, their storage, accommodation, preparation for extradition, shipment. Today it is impossible to imagine the competent work of warehouses without knowledge of the basics, principles, warehousing logistics technologies.

Classification of warehouses in logistics

There are different criteria for classifying compounds: by appointment, by type of product, in the form of warehouse buildings. Consider them in more detail in the table.

Table – Classification of warehouses in logistics

Classification criteria	Warehouses
By appointment	– for production raw materials (shop, factory warehouses), – for transit and transportation (usually, for short-term storage at railway stations or seaports), – for storage at customs (short storage, while the owner is undergoing customs inspection), – for seasonal storage, – reserve warehouses, – distribution warehouses.
By type of product	– warehouses for raw materials, – for accessories, – for finished products, – for waste storage, residues.
By type of storage facilities	– one-storey, multi-storey warehouses, – open, under the canopy, closed warehouses.
Under storage conditions	– general purpose warehouses, – specialized warehouses, – containers for liquids, – tanks for storage of dangerous substances.
According to the degree of technological equipment	– warehouses low, weak mechanization, – medium mechanized equipment, under the guidance of man, – warehouses with automation with some human participation, – warehouses extremely automation, without human intervention.
By belonging to the element of logistics	– warehouses for manufacturers, – for intermediaries, – for freight forwarders, – for transport organizations, – for outlets.

These warehouses are not all of the existing repositories, but the presented classification is the most common.

Warehouse functions

Properly organized storage space is carried out 5 basic functions:

1) Receipt of goods, its shipment. The feature includes: processing of goods and accompanying documents, checking the quantity and quality of goods.

2) Goods warehousing services, storage.

3) Merge batches of goods (small to large), in order to deliver the product to everyone at once, even to small customers.

4) Delivery control, stocks of goods in stock. There is a certain limit for each range, no increase is allowed, no reduction in its number. In each case, the company incurs losses.

5) Various logistics services (collection, packing, unpacking, testing and more).

Basic principles, warehousing logistics technologies

Any warehouse manages several main "flows": Input. All loads, that "come" to the warehouse must be processed: to count, unload, check the documentation. Weekend. All products from the warehouse must be properly "released": prepare supporting documents, to pack, download. Internal. For the cargo, located in the warehouse, you need to watch: move, sort, handle as needed, draw up the relevant documentation on them.

At the heart of the organization of flows are technological operations, indicators of which are:

• Speed ​​of turnover (how fast the goods leave the warehouse, how quickly its reserves are replenished).
• Preservation of product quality and its properties. Losses depend on it, losses of the enterprise.
• Cost-effectiveness of the entire system of movement of goods in the warehouse.

To indicators of the technological process (speed, security, economy) were high, it is important to follow the basic principles of warehousing logistics:

• Parallelism. This principle provides the ability to perform different operations at the same time at any stage of logistics. Which reduces the time of all work, increases its effectiveness, leads to automation of actions.
• Proportionality or conformity. Does it mean, that all related actions should be approximately equal in speed, as well as productivity. If the principle is not followed, then there will be delays, malfunctions.
• Rhythmic process. It implies the repetition of operations at regular intervals. Streams can, how to grow, and decline. Rhythm makes it possible to calculate energy expenditure, normalize the working day, allocate leisure time for people and cars. This principle can be violated not only by internal inconsistencies, but also by external factors: brought at the wrong time products, the rush began. It is important to follow this principle in all directions.
• Continuity. Does it mean, that there are no breaks and "breaks" in work. The principle gives the maximum efficiency of all process of logistics. To adhere to it, you can organize the work in shifts.
• Flow. The principle provides for such an organization of work, in which all sectors of the process are connected in series: end of one action – this is the beginning of another. It's like a conveyor belt. Importantly, so that the sectors are located as close as possible to each other to save travel time.
• Directness. The essence of the principle is clear from the name – "Straight and accurate". Save time, labor resources are possible, if you organize the process so, that the routes of movement were direct (as far as possible). Or use not only horizontal, but also the vertical plane. Adherence to all principles will make technological operations of warehouse logistics more efficient.

What should be the company's warehouse logistics

Managers of any company understand the importance of warehousing logistics. And here the main question is not that, "What is the benefit to me from competent warehouse logistics", but that, "Which logistics will be more efficient for a particular company".

General requirements for warehouse storage management:

• maximum efficiency;
• accuracy of "Swiss watches";
• guarantee of safety of all cargoes;
• minimum cash costs.

High-quality warehousing logistics requires availability:

• competent professionals;
• large fleet of special equipment;
• various compositions (falling into different categories of classification);
• successful experience of specific practical work.

The most difficult requirements are the minimum cost and maximum efficiency. And if the company is small, it is very expensive for her to organize a logistics warehouse?

There are two ways to organize: own or leased warehouse (outsourcing). But here it is important to remember, that cooperation with the office, which provides warehousing services, has pros and cons:

• pros: high quality of services, provided; cheaper, than to build their premises.
• cons: lack of management skills (even in the long run) warehouses; low prospects for the development of their own enterprise.

Usually, build their warehouses in that case, if transportation costs do not "eat" the profit from transportation.

Organization of warehousing business

If the leaders of the enterprise decided to organize a warehouse, then they can be given 5 practical advice:

1) At the first stage it is very important to calculate a very successful number of warehouses. This is directly related to the volume of production, which is produced by the enterprise. The optimal solution provides, that all products are "exactly" stored in organized premises. More of it will make you spend on transport, Less – will cause empty buildings to stand idle. In both cases, these are unnecessary costs and losses.

2) Think again, whether the company needs its own warehouse logistics. Make a comparative analysis of rental and purchase prices / construction of premises. Count, how quickly the purchase will pay off, what the final profit will remain after all transportation and organizational costs.

3) If after a comprehensive analysis the calculations showed, that own logistics is more profitable, then the next step should be to choose the location of the warehouse. It is necessary to approach definition of a place very responsibly, take into account all the nuances: from where the goods will come to the warehouse, where it will then be transported.

4) Next you need to determine, how exactly the goods will be placed, how to store, who and how will manage them in the warehouse.

5) a prerequisite for proper organization – this is the calculation of the most efficient method of warehousing logistics.
To do this, determine:
– the most convenient storage options,
– type of equipment,
– cargo characteristics, method of processing and storing information.

Only after that, how all aspects of the organization of the repository were analyzed in detail, you can make the final decision.
Maintaining warehouse documentation There is a whole package of normative documents, which regulate the reception, placing, storage and shipment of various products. Documents will be required to receive the goods: invoices from the manufacturer or supplier, is a "ticket" for that, to take the products to the warehouse; invoice on arrival at the warehouse.

The cargo is moved inside the warehouse with the following documents: overhead requirements. Needed to move goods between departments of the organization; data (or cards), in which the limit of use is specified. Needed to move cargo from warehouse to production. Documents will be required for the release of products: instruction. Has a link to the account and the contract (for the logistics department is mandatory); intake sheet and consumables. All documents of receipt, movement, product issuance contains indicators, as a quantity, and quality. Any production resembles cycling: you will stop, you will fall immediately. Warehouse logistics is equivalent to bicycle pedals: while its work is clearly established, rhythmically and continuously, the company is moving forward effectively.

This article was written with the assistance of Rona2, engaged engaged in a full range of warehousing services. The full list of services can be found in them on the site ""