Importance of Warehouses (Essay Sample)

Importance of Warehouses
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Introduction
A warehouse is a place where raw materials and finished products are stored before being shipped to consumers (Lohrey, 2014). However, there are several other processes which take place in warehouses such the inbound tasks which involve the preparation of products to be stored in the warehouse and outbound tasks which involve bringing together, packing, and distributing orders to consumers (Lohrey, 2014). Warehouses are very important especially for big businesses which get many orders. Warehouses are useful for multinational companies which supply millions of people regularly. Consequently, effective regulation of the entire warehouse processes determines a company’s internal success. This paper discusses the importance of warehousing and the various components which characterize warehouses.
Warehousing Operations 
The operations which take place within the warehouse are crucial ingredients to a company’s overall organization strategy. Efficiency in warehouse operations makes certain that an organization receives and ships important stock in good time to replenish manufacturing centers and store shelves (Lohrey, 2013). The first part of warehouse operations begins at the receiving area whereby inventory and raw materials are brought in. This is where efficiency begins because all the things which are to be received per day must be received and secured. Furthermore, the receiving clerk must make sure that all relevant documents have been collected and the receiving log is in order (Lohrey, 2013). The movement of inventory is another process within warehouses which requires experienced handlers to move the material in a competent manner. These handlers need adequate certification since they primarily use boom lifts and fork lifts to move around the inventory. Shipping is another part of warehouse operations which involves taking inventory from the warehouse and loading it to trucks. This place requires a lot of caution and security because this is where there is the greatest risk of spoilage and theft (Lohrey, 2013). Furthermore, all documents from the carrier should also be received and recorded to the warehouse shipping log.
Public vs. Private Warehousing 
Public warehousing refers to warehousing space which rented out to businesses or individuals (CSS, 2010). This type of warehouse is advantageous especially for the smaller companies which don’t have the necessary capital needed to straight out buy or build their own warehouses. Therefore, public warehouses allow these smaller companies to occupy warehouses on a rental basis where they can now focus on increasing their size and capability (CSS, 2010). Nevertheless, renting such space is at times expensive so the businesses have to be established in order to be able to sustain the rental payments. Private warehousing refers to warehouses which are owned by specific individuals or companies. Typically, these types of warehouses are owned by huge companies which have the financial resources to invest in them (CSS, 2010). For example, companies such as Wal-Mart, Costco, and Amazon have the financial resources to not only buy but also build their own private warehouses.
Warehouse Layout & Design
A warehouse’s layout design is very important because it significantly affects organizational performance. Such performance includes the handling of material, picking productivity, and the to and fro movement within the warehouse (Ettinger, 2013). Furthermore, selecting the right equipment is crucial especially when dealing with barcode scanners, forklifts, conveyor solutions, RFIs and many more. The layout of a warehouse requires that individuals develop the warehouse from the concept of departmental adjacency (Ettinger, 2013). This overall plan helps create an interconnected layout and design for the warehouse. Typically, there are 6 parts to a whole warehouse including the front end, the production cell, the warehousing, the shipping and receiving, maintenance/ production support, and employee services. Size wise a warehouse’s design and layout should take into account the number of people who will be operating within it and the number of machineries which will also be moving about (Ettinger, 2013). Additionally, a warehouse should be built in an area which will facilitate ease in transporting materials in and out of the facility.
Warehouse Management System (WMS) and Technological Development
Warehouse management systems are key aspects of creating efficiency within the warehouse. In fact, combined with recent technological development WMS has become very necessary in enhancing warehouse operations (Wurth, 2014). One of the most important aspects of management systems is the availability of real-time information. Such information allows for greater planning concerning the day to day operation to the warehouse. In fact, with the warehouse management systems it is very possible to look at current, outgoing and incoming inventory within the warehouse (Wurth, 2014). Furthermore, the real-time information allows the warehouse workers to have better coordination from when the time new inventory is coming in from the gate, to the storage, and on to the distribution point (Wurth, 2014). These systems are so advanced today that warehouse management officials are able to keep up with all the documents which pertain to inventory and facilitate ease of operations with the facilities.
Capacity Management 
Statistics indicate that competent capacity management systems can result in a substantial increase in the volume of goods which are ordered and improvements in fulfilling first time orders (Houghton, 2005). Capacity management involves allocating space to customers so that the warehouse will never fail to meet their specific orders during specific seasons. Capacity management also allows warehouse operatives to forecast and schedule actual deliveries which expedite warehouse processing operations (Houghton, 2005). Capacity management also helps warehouse operatives accommodate reserves which covers unforeseen supplier discrepancies. Overall, competent capacity management makes sure that operation managers are able to effectively utilize a warehouse’s capacity.
Warehouse Work Organization and Job Design
A warehouse’s work organization and job design are linked to the warehouse’s layout and design. These two fit into the overall interconnectedness of the warehousing operations (Ettinger, 2013). Consequently, work organization helps implements an interconnected system where each person in intrinsically linked to the everyday warehousing operations. This intrinsic link refers to the job design such as the fork lift operators, the receiving clerks, t...