Many people think a warehouse is just a place to store goods. However, a warehouse holds a key point during the logistics and supply chain process. Below, these are 9 common warehouse logistic terms you may be familiar with.
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Warehouse in Logistic Industries
A warehouse is a place where goods or materials are stored accordingly. Either as raw materials, semi-finished goods, or finished goods.
In short, activities in a logistic warehouse include several processes. Such as receiving, storing, and shipping goods or materials from one place to another.
Furthermore, a logistic businessman should be familiar with the warehouse logistic terms.
The Function of Warehouse Logistics
Actually, a warehouse in the logistic and supply chain world is not just a place to store goods. Besides supporting the production process, it also acts as a sorting and transit place.
Thus, knowing the terms that are often used in the warehouse industry may benefit you in the long run. Especially if you are inside the logistics and supply chain sectors.
Below, we provide the 9 most common warehouse logistic terms. These are the processes included in the warehouse management system when goods enter the warehouse.
9 Common Warehouse Logistic Terms
As mentioned before, knowing common warehouse logistic terms would make your supply chain management easier. The terms are :
First and foremost, the term receiving process is the one you do in warehouse logistics. In receiving, this is when the goods arrive at the warehouse.
Meanwhile, putaway is placing goods in specific locations in the warehouse. Both receiving and putaway are correlated to each other.
The function of receiving and putaway is to provide accurate information about where to put the goods organized. Therefore, the goods data matches the demand in the warehouse.
Third, dispatching is assisting in the release of products from the warehouse for shipment to consumers. The purpose is to help warehouse employees find a place for goods to be removed from the warehouse.
Fourth, picking is a gathering process in the warehouse to fulfill the orders of the customers.
The picking process can account for up to 55% of the total operating costs. Therefore, it is important to optimize the picking process to reduce the cost.
Next, packing is warehousing that involves packaging. Packing involves assembling the goods or products ordered by the customer. They then prepare the goods for immediate delivery to the customer.
One of the purposes of packing is to ensure the condition of the goods before they leave the warehouse. Packing reduces the risk of damage to the goods before they reach the customer.
Returns mean return shipments. The returns process can go through different stages depending on company policies.
When customer demand increases, the return process may become more complicated. Therefore, the factory or company usually avoids this return process.
The next term in the warehouse is inventory. Inventory refers to the function of the warehouse as a place where the physical stock of a product is stored.
Furthermore, it includes matching the physical stock of a product with the existing stock in the computer system.
Shipping is a term in warehousing that refers to delivering goods to customers. Basically, expediting service or company-owned ships are the ones who do the shipping process.
The last term in the warehouse is reporting. Reporting is a report that contains information and explanation about the warehouse management process.
The entire report is exactly related to the content of the inventory of goods available in the warehouse. Eventually, the results are useful for companies to follow or make a policy.