Warehouse processes

“Success is a process, not an event.” Richie Norton

💡 Learning objectives

• Recognize warehouse internal operations.

Although it is easy to think of a warehouse as being dominated by the storage function, there are many activities that occur as part of the process of getting material into and out of the warehouse. The following list includes the activities found in most warehouses. These tasks, or functions, are also indicated in Figure 7.2 to make it easier to visualize them in actual operation.

— Facilities Planning (Tompkins 2010, 389).

Typical warehouse functions and flows

Figure 1: Typical warehouse functions and flows.

Although it is easy to think of a warehouse as being dominated by the storage function, there are many activities that occur as part of the process of getting material into and out of the warehouse. The following list includes the activities found in most warehouses. These tasks, or functions, are also indicated in Figure 7.2 to make it easier to visualize them in actual operation.

— Facilities Planning (Tompkins 2010, 389).

Terminology may vary: functions, internal activities, operations

Warehouse internal activities/operations/processes

1. Receiving
2. Put-away
3. Storage
4. Order picking
5. Shipping

Although the roles and names of warehouses may differ, the internal activities are remarkably similar. Those activities include the following:

1. Receiving is the collection of activities involved in (a) the orderly unloading and receipt of all materials coming into the warehouse, in (b) providing the assurance that the quantity and quality of such materials are as ordered, and in (c) disbursing materials to storage or to other organizational functions requiring them. Prepackaging is an optional activity that is performed in a warehouse when products are received in bulk from a supplier and subsequently packaged singly, in merchandisable quantities, or in combinations with other parts to form kits or assortments. An entire receipt of merchandise may be processed at once, or a portion may be held in bulk to be processed later. This may be done when packaging greatly increases the storage-cube requirements or when a part is common to several kits or assortments. Cross-docking is moving inbound material directly from the receiving dock to the shipping dock, essentially filling orders from receiving.

2. Put-away is the act of placing merchandise in storage. It includes moving material to and placing material in assigned put-away locations.

3. Storage is the physical containment of merchandise while it is awaiting a demand or until it is released from quarantine. The storage method depends on the size and quantity of the items in inventory and the handling characteristics of the product and/or its container. We characterize storage systems as pallet storage systems, case storage systems, and broken-case storage systems.

4. Order picking is the process of removing items from storage to meet a specific demand. Order picking is the basic service a warehouse provides for its customers, and it is the function around which most warehouse designs are based.

5. Shipping typically includes

   1. Sorting batch picks into individual orders and accumulating distributed picks into orders (This must be done when an order has more than one item and the accumulation is not done as the picks are made.)
   2. Checking orders for completeness and accuracy
   3. Packaging merchandise in an appropriate shipping container
   4. Preparing shipping documents, including packing lists, address labels, and/or bills of lading
   5. Weighing and cubing shipments to determine shipping charges
   6. Accumulating orders by outbound carrier
   7. Loading trucks

— World-Class Warehousing and Material Handling (Frazelle 2016, 16–18).

Traditional warehouse process flow

Figure 2: Receiving, put-away, storage, order picking, and shipping (Frazelle 2016).

Although the roles and names of warehouses may differ, the internal activities are remarkably similar. Those activities include the following:

1. Receiving is the collection of activities involved in (a) the orderly unloading and receipt of all materials coming into the warehouse, in (b) providing the assurance that the quantity and quality of such materials are as ordered, and in (c) disbursing materials to storage or to other organizational functions requiring them. Prepackaging is an optional activity that is performed in a warehouse when products are received in bulk from a supplier and subsequently packaged singly, in merchandisable quantities, or in combinations with other parts to form kits or assortments. An entire receipt of merchandise may be processed at once, or a portion may be held in bulk to be processed later. This may be done when packaging greatly increases the storage-cube requirements or when a part is common to several kits or assortments. Cross-docking is moving inbound material directly from the receiving dock to the shipping dock, essentially filling orders from receiving.

2. Put-away is the act of placing merchandise in storage. It includes moving material to and placing material in assigned put-away locations.

3. Storage is the physical containment of merchandise while it is awaiting a demand or until it is released from quarantine. The storage method depends on the size and quantity of the items in inventory and the handling characteristics of the product and/or its container. We characterize storage systems as pallet storage systems, case storage systems, and broken-case storage systems.

4. Order picking is the process of removing items from storage to meet a specific demand. Order picking is the basic service a warehouse provides for its customers, and it is the function around which most warehouse designs are based.

5. Shipping typically includes

   1. Sorting batch picks into individual orders and accumulating distributed picks into orders (This must be done when an order has more than one item and the accumulation is not done as the picks are made.)
   2. Checking orders for completeness and accuracy
   3. Packaging merchandise in an appropriate shipping container
   4. Preparing shipping documents, including packing lists, address labels, and/or bills of lading
   5. Weighing and cubing shipments to determine shipping charges
   6. Accumulating orders by outbound carrier
   7. Loading trucks

— World-Class Warehousing and Material Handling (Frazelle 2016, 16–18).

Receiving

Collection of activities involved in

1. orderly unloading and receipt of all materials coming into the warehouse,
2. providing the assurance that the quantity and quality of such materials are as ordered,
3. distributing materials to storage or to other organizational functions requiring them.

Receiving is the collection of activities involved in (a) the orderly unloading and receipt of all materials coming into the warehouse, in (b) providing the assurance that the quantity and quality of such materials are as ordered, and in (c) disbursing materials to storage or to other organizational functions requiring them. Prepackaging is an optional activity that is performed in a warehouse when products are received in bulk from a supplier and subsequently packaged singly, in merchandisable quantities, or in combinations with other parts to form kits or assortments. An entire receipt of merchandise may be processed at once, or a portion may be held in bulk to be processed later. This may be done when packaging greatly increases the storage-cube requirements or when a part is common to several kits or assortments. Cross-docking is moving inbound material directly from the receiving dock to the shipping dock, essentially filling orders from receiving.

— World-Class Warehousing and Material Handling (Frazelle 2016, 16–18).

Prepackaging

Products are received in bulk from a supplier and subsequently packaged singly in:

• merchandisable quantities, or

• combinations with other parts to form kits or assortments.

An entire receipt of merchandise may be processed at once, or a portion may be held in bulk to be processed later. This may be done when packaging greatly increases the storage cube requirements or when a part is common to several kits or assortments.

Prepackaging is an optional activity that is performed in a warehouse when products are received in bulk from a supplier and subsequently packaged singly, in merchandisable quantities, or in combinations with other parts to form kits or assortments. An entire receipt of merchandise may be processed at once, or a portion may be held in bulk to be processed later. This may be done when packaging greatly increases the storage-cube requirements or when a part is common to several kits or assortments.

— World-Class Warehousing and Material Handling (Frazelle 2016, 16–18).

Cross-docking

Moving inbound material directly from the receiving dock to the shipping dock, essentially filling orders from receiving.

Cross-docking is moving inbound material directly from the receiving dock to the shipping dock, essentially filling orders from receiving.

— World-Class Warehousing and Material Handling (Frazelle 2016, 18).

Put-away

Act of placing merchandise in storage.

It includes moving material to assigned put-away locations and placing it there.

Put-away is the act of placing merchandise in storage. It includes moving material to and placing material in assigned put-away locations.

— World-Class Warehousing and Material Handling (Frazelle 2016, 18).

Storage

Physical containment of merchandise while it is awaiting a demand or until it is released from quarantine. The storage method depends on:

• Size and quantity of the items in inventory

• Handling characteristics of the product and/or its container

Storage systems are characterized as:

• Pallet storage systems
• Case storage systems
• Broken-case storage systems

Storage is the physical containment of merchandise while it is awaiting a demand or until it is released from quarantine. The storage method depends on the size and quantity of the items in inventory and the handling characteristics of the product and/or its container. We characterize storage systems as pallet storage systems, case storage systems, and broken-case storage systems.

— World-Class Warehousing and Material Handling (Frazelle 2016, 18).

Order picking

Process of removing items from storage to meet a specific demand. Order picking is the basic service a warehouse provides for its customers, and it is the function around which most warehouse designs are based.

Order picking is the process of removing items from storage to meet a specific demand. Order picking is the basic service a warehouse provides for its customers, and it is the function around which most warehouse designs are based.

— World-Class Warehousing and Material Handling (Frazelle 2016, 18).

Shipping

Includes:

• Sort and consolidate picks into complete orders.
• Check completeness and accuracy.
• Package merchandise in suitable shipping containers.
• Prepare packing lists, address labels, and bills of lading.
• Weigh and cube shipments to determine charges.
• Accumulate orders by outbound carrier.
• Load trucks.

Shipping typically includes

1. Sorting batch picks into individual orders and accumulating distributed picks into orders (This must be done when an order has more than one item and the accumulation is not done as the picks are made.)
2. Checking orders for completeness and accuracy
3. Packaging merchandise in an appropriate shipping container
4. Preparing shipping documents, including packing lists, address labels, and/or bills of lading
5. Weighing and cubing shipments to determine shipping charges
6. Accumulating orders by outbound carrier
7. Loading trucks

— World-Class Warehousing and Material Handling (Frazelle 2016, 18).

🎯 Recap

Warehouse operations form one connected flow:

1. Receive and verify inbound materials.
2. Put away items in assigned locations.
3. Store products safely until demand occurs.
4. Pick items to satisfy specific orders.
5. Ship complete and accurate orders.

Although the roles and names of warehouses may differ, the internal activities are remarkably similar. Those activities include the following:

1. Receiving is the collection of activities involved in (a) the orderly unloading and receipt of all materials coming into the warehouse, in (b) providing the assurance that the quantity and quality of such materials are as ordered, and in (c) disbursing materials to storage or to other organizational functions requiring them. Prepackaging is an optional activity that is performed in a warehouse when products are received in bulk from a supplier and subsequently packaged singly, in merchandisable quantities, or in combinations with other parts to form kits or assortments. An entire receipt of merchandise may be processed at once, or a portion may be held in bulk to be processed later. This may be done when packaging greatly increases the storage-cube requirements or when a part is common to several kits or assortments. Cross-docking is moving inbound material directly from the receiving dock to the shipping dock, essentially filling orders from receiving.
2. Put-away is the act of placing merchandise in storage. It includes moving material to and placing material in assigned put-away locations.
3. Storage is the physical containment of merchandise while it is awaiting a demand or until it is released from quarantine. The storage method depends on the size and quantity of the items in inventory and the handling characteristics of the product and/or its container. We characterize storage systems as pallet storage systems, case storage systems, and broken-case storage systems.
4. Order picking is the process of removing items from storage to meet a specific demand. Order picking is the basic service a warehouse provides for its customers, and it is the function around which most warehouse designs are based.
5. Shipping typically includes sorting batch picks into individual orders, checking orders for completeness and accuracy, packaging merchandise, preparing shipping documents, weighing and cubing shipments, accumulating orders by outbound carrier, and loading trucks.

— World-Class Warehousing and Material Handling (Frazelle 2016, 16–18).

References

Frazelle, Edward. 2016. World-Class Warehousing and Material Handling. Second Edition. McGraw-Hill Education.

Tompkins, James A., ed. 2010. Facilities Planning. 4th ed. J. Wiley.