Warehousing logistics: What is it and its role in the supply chain?

At FM Logistic we are specialists in warehousing services and offer other value-added solutions related to this service. Likewise, we invest in continuous improvement, innovation and sustainability in order to reduce our costs as much as possible and to be leaders in the omnichannel and sustainable supply chain by 2030.

The words warehousing and logistics always go hand in hand because with a good warehousing service we will get a good overall logistics service. Warehousing logistics is one of the most important parts to take into account in your supply chain management: security, provisioning, conservation, qualified personnel, etc.

The main objective of warehouse logistics is to reduce operating costs as much as possible, in order to offer a competitive service, without losing service quality. Therefore, it is important to take into account:

Warehouse logistics encompasses the entire process from the time a product arrives at a logistics warehouse for storage, management, procurement and stock maintenance for future orders, until the product leaves the warehouse for the final consumer or supplier.

Depending on the type of products, there are different types of logistics warehouses.

In this type of warehouse, several small orders are grouped together to create a larger shipment to reduce transportation costs. This type of warehouse is related to companies that have, on a daily basis, a large number of orders to manage and classify.

This type of warehouse serves the complete opposite function of a consolidation warehouse. This type of warehouse manages and divides orders into small batches to execute smaller shipments. With this action, products are moved from production centers to intermediate locations to the final consumer in order to optimize the distribution of the goods.

To achieve optimal and correct storage logistics, it is necessary to have differentiated areas to carry out the different logistics and transport tasks so that the goods always arrive on time and in perfect condition.

In this first step, when the goods arrive at the warehouse, the goods are identified with their corresponding delivery notes, a quality control is performed and the products are classified.

Once the goods have been sorted, they are placed inside the warehouse, making the best use of the available space and securing the goods. The products can be stored in the most appropriate way, strategically speaking, for later handling in the preparation of orders.

In some warehouses the picking area coincides with the receiving and dispatch area, but in other warehouses it is located elsewhere. Regardless of the structure of the warehouse, the picking area is the place where orders are prepared according to the real demands of the supplier, customer or end consumer. All the merchandise must be correctly located and managed so that the picking process is quick and easy.

This step is the final process. Once all the orders have been prepared, they must be dispatched and distributed to the different vehicles that will take them to the final customer. This task is of great importance and responsibility because it is essential to take into account the possibility of fragility of the orders so that the merchandise does not suffer any damage and arrives in perfect condition.

We have already discussed the basic areas within a logistics warehouse. You also need to consider the advanced areas that make your warehousing more successful and efficient and make a difference in your operations.

The design of the warehouse structure is a fundamental aspect for its correct operation. A priori it seems a simple matter but the correct distribution of the space must be perfectly studied and measured to cover all the demands and make the most of the available spaces and resources.

The management of materials ranges from the use of sustainable, resistant and beneficial materials for people in the construction of the warehouse to the correct classification and division of products to ensure proper risk management in relation to their manufacture and characteristics. In many occasions, there are different types of materials that cannot be together in the same space because chemically they are not compatible with each other and it is necessary to protect all the people and the other products in case of an accident, fire or unforeseen event.

A correct inventory management and a good supply in the face of demand peaks is a prerequisite for a successful logistics operation. If you want to know more you can access our post: Guide to improve stock management and logistics warehouses.

The safety of warehouses, products and people is a fundamental pillar within the business priorities of any company or logistics operator. At FM Logistic the safety of people is at the center of our activity. If you want to know more you can access our post: Operational safety: The future of work in the warehouse.