Logistics warehouses: find out what this building does and how to optimise it to raise productivity.
Are you planning to have a logistics warehouse built and looking to find out whether this type of building really matches what you are after? In the industrial sector, to take one example, it is indispensable to keeping the whole supply chain running. This guide explains what it does and which types of logistics warehouse exist, then turns to the options open to you for optimising the way it works.
A logistics warehouse is a building, larger or smaller, given over to managing your stock. Once produced, goods are brought here to be prepared for delivery, which makes it an essential element of the supply chain. Managing a logistics warehouse well not only prevents stockouts but also improves customer satisfaction.
The logistics warehouse serves several functions: it receives goods, holds them for a time, then picks them and delivers them to customers. That is the broad outline. Now for the detail, so that you can fully understand how it works, stage by stage.
First, goods are received, checked and recorded. This step confirms that nothing is missing. They are then sorted and placed in different areas according to a range of criteria. Storing goods calls for very strict safety rules to prevent any risk of falls, injuries or accidents during handling. Throughout the storage phase, stock has to be checked regularly so that replenishment needs can be anticipated and both stockouts and overstocks avoided.
When customers place orders, the goods are selected and picked. They are then packed securely and labelled. This step has to be done well to make deliveries easier: products that are easy to identify from their labels save a great deal of time. Once that is done, the goods can go out for delivery.
Finally, the logistics warehouse is also where returns are handled. As soon as returned goods arrive, they are checked to establish whether they can go back into stock or whether another course of action is needed. Above all, it is here that the reasons behind returns are established, and whether or not they are justified.
As you can see, the logistics warehouse is of critical importance to the supply chain. It keeps logistics flows running smoothly. The way you manage it has a direct bearing on replenishment, on deliveries and on customer satisfaction.
Inside the logistics warehouse, stock is managed efficiently and strategically. The aim is to make every subsequent stage of the supply chain easier. Getting there means paying close attention to how goods are stored, which is why you should invest in appropriate storage solutions. Several options exist (racking, racks and so on) and all of them keep stock in good order. When you go looking for goods to fulfil a delivery, you will have no trouble finding them.
"Logistics warehouse" is the name for the building as a whole. Depending on your business and the sector you work in, however, you can opt for different types. The main ones include:
- Automated warehouses
- Open warehouses
- Enclosed warehouses
- Temporary warehouses
- Picking warehouses
- Distribution warehouses, and others
In practice, you can have several small warehouses, one for each stage of the supply chain. That said, if you have the opportunity and the room, a single large multi-purpose logistics warehouse divided into areas is the wiser choice. Either way, choosing the right logistics warehouse is not a decision to take lightly. You have to weigh up your needs carefully, along with the area of your site. You also need to consider the quantity of goods that will enter the warehouse and how long they will stay there. And should you prefer, we also offer pre-engineered storage warehouses, which are both more practical and more economical.
A large logistics warehouse is laid out so that each task and operation has its own area. Those areas need different dimensions according to their purpose. You will of course need a large warehouse to divide it into several zones.
Goods-in is where deliveries arrive and are checked to confirm that they are correct and in perfect condition. Their arrival is recorded in a register that has to be kept continuously up to date so that the rest of the supply chain can consult it. A single error in the register can have far-reaching consequences for the operations that follow.
The storage area is where all incoming goods are held before being picked for delivery. This is where storage solutions really count. Depending on the size of the area, you can choose between different options. Whatever you decide, make sure you know the rules and safety standards governing the storage of your goods and the safety of your staff.
When customers place an order, the products they have asked for are moved from the storage area to the order picking area.
The consolidation area is where goods are brought together and sorted by delivery zone, by customer or by order. Which of the three applies depends on how many customers you deliver to and how far apart your delivery zones are. Positioning your goods effectively saves your drivers a great deal of time on their rounds.
In the packing area, goods are packed and labelled to make the other teams' work easier. Packing has to follow precise rules, and packing your products properly protects them in transit.
The distribution area, also known as the dispatch area, is where packed parcels are brought together ready to go out for delivery.
The returns area is a fairly specific space whose only purpose is to receive goods sent back by customers. Here, products are examined to establish the real reasons behind the return.
This area holds all the tools, equipment and handling machinery, keeping them out of the other zones. Some equipment can be very dangerous, which is why it should not be left just anywhere in the logistics warehouse. A dedicated storage area matters more than you might think.
The loading and unloading area is a large space where delivery lorries arrive to drop off goods and set off again to deliver parcels. Safety here is particularly important, because accidents are common: there is a great deal of vehicle movement, and a great many employees loading and unloading lorries.
Once you have a logistics warehouse, you have to make sure it runs as efficiently as possible. Doing so saves time every day, prevents errors, shortens delivery times and cuts the costs tied to your business. So how do you improve on what you have? Start by equipping your warehouse with quality tools and machinery to make every operation easier. Then invest in the best storage solutions for the dimensions of your building. Storing your goods properly and keeping the aisles easy to reach will cut the time your teams spend looking for products and picking them.
You should also acquire stock management and optimisation software. These tools give you clear visibility of your stock, whether incoming, held or outgoing. With that, you know exactly when to replenish. When orders come in, you know in advance whether you have the products concerned in stock. It becomes far easier to anticipate demand, which counts for a great deal when the aim is to avoid running out.
Whatever your business, you need a logistics warehouse. This building is central to keeping the whole supply chain running. Having one is not enough, though: you also have to learn to manage it well. Ideally, if you have the space, divide your warehouse into dedicated areas. It is the most effective way to organise your operation. Managing a warehouse well saves time and money in equal measure.
As this guide has shown, several different types of logistics warehouse exist. Before you make your final decision, then, start by assessing what you need. If you are unsure which option suits you best, do contact our teams, who will advise you as well as they can according to your business and your budget. So do not wait: contact Steel Shed for Business today and turn your project into reality.
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