MODULE 1&2: Warehouse Operations Management

LESSON2: The nature and importance of warehousing in the logistics system, Types of
warehousing, Functions of warehousing, Decision criteria for warehousing types; Warehouse
Location Selection-Macro perspective and Micro perspective

INTENDED LEARNING OUTCOMES

At the end of this module the students must be able to:

1. Understand the importance of warehousing in logistics systems.
2. Know the different classification of warehouses.
3. Know the distinction between logistics and distribution center.
4. Understand the factors to be considered while selecting a warehouse.

Importance of Warehousing in Logistics System

Abstract— Warehousing in transport services has an important role in the transport of goods. The
freight company will not work well without warehouses. This is immutable and can be considered as a
condition for a transport unit to be formed. The importance of warehousing for shipping units in
general as well as for freight services, in particular, is undeniable. However, the actual situation of
warehousing of transport units, as well as freight units, also have many outstanding issues.

INTRODUCTION

Warehousing is an integral part of the supply chain as well as in logistics services. Warehousing is a
place to store and preserve raw materials, semi-finished products or finished goods (goods) in order
to provide customers with the fastest and lowest cost when they request. The importance of
warehousing in logistics is huge. Warehouse operations have a direct impact on the storage and
management of goods of businesses. Warehouse management in good logistics helps businesses.
The warehouse has a direct role in ensuring the continuity of the production and distribution of goods.
Warehouse management helps businesses store all products and manage the number of products on
the entire system. Contribute to reducing production, transportation and distribution costs. Thanks to
this, the warehouse can actively create economic-scale shipments during production and distribution,
thereby reducing the average cost per unit, contributing to saving traffic costs through the
management. Good management of cargo loss, economical and efficient use of warehouse facilities.
Support the customer service process of the business through ensuring the quality goods in terms of
quantity, quality, shipment status, contributing to delivery on time and place [1]. The more the day-to-
day distribution business, the higher the complexity in warehouse management and operation. The
inventory is getting bigger, the product categories are more and more abundant, this often leads to
the increasing demand for warehouse space and management manpower. Many distributors had to
spend huge amounts of money on consolidating and clearing goods in the warehouse, managing the
loading cycle, and moving to the consolidation place. Inconsistency of warehouse management also
becomes a problem if you cannot accurately manage inventory in a warehouse with a larger
warehouse or warehouse location in many places [2]. Modern warehouses often have the following
functions Consolidation: when a shipment / raw material is not enough, the Consolidator will gather,
adjust and arrange for individual shipments into quantities sufficient to use container shipping. When
goods / raw materials are received from many small sources of goods, the warehouse acts as a
consolidation point for such large lots, which will have the advantage of scale when being transported
to factories and markets by different means. Transportation facilities Merchandise coordination:
(Organizing business items) In order to meet the orders of a variety of customers, warehouse
management is responsible for separating large shipments, coordinating and combining goods.
Different into a complete order, ensuring goods ready for the sales process.
Ensuring and storing goods: Ensuring the goods are intact in quantity and quality throughout the
operation, making the most of the warehouse area and capacity, taking care of preserving goods in
the warehouse.

A. Warehouse Classification
Warehouse activities have a direct impact on the storage and preservation of goods of businesses.
Warehouse management in good logistics helps businesses Contribute to reducing production costs,
transport, distribution of goods. Thus, the warehouse can actively create economic-scale shipments
during production and distribution, reducing the average cost per unit. Contribute to saving the
circulation costs through the good management of cargo loss, economical and efficient use of
warehouse facilities. Maintain a stable supply, ready to deliver whenever customers demand.
Providing customers with better service due to the right goods in terms of quantity, quality, and
condition. Make a difference and increase the competitive position of the business [3].

1) Cross docking
Cross-docking is a logistical practice of Just-In-Time Scheduling where materials are delivered directly from a
manufacturer or a mode of transportation to a customer or another mode of transportation. Wikipedia
Cross Docking is a logistics technique that eliminates the function of storing and collecting orders of a
warehouse, but still allows the implementation of receiving and shipping functions. The main idea of
this technique is to transfer shipments directly from trailers to trailers - bypassing the intermediate
storage process. Regular shipments take only about a day at the Cross dock and sometimes less
than 1 hour. Therefore, it will reduce costs as well as increase the efficiency of exploiting or receiving
stored goods and immediately load on trucks to transport to the prescribed place. Cross Docking is a
logistics technique that eliminates the function of storing and collecting orders of a warehouse, but
still allows the implementation of receiving and shipping functions. The main idea of this technique is
to transfer shipments directly from trailers to trailers - bypassing the intermediate storage process.
Regular shipments take only about a day at the Cross dock and sometimes less than 1 hour.
Therefore, it will reduce costs as well as increase the efficiency of exploiting or receiving stored goods
and immediately load on trucks to transport to the prescribed place. In addition to low volatility,
demand for the product must be sufficient to ensure shipments are routinely delivered because if
demand is too low, regular deliveries will result in increased input freight costs, and the warehouse
will have better storage. Some types of products, such as perishable items require immediate
transportation; High-quality items without having to check the quality during delivery; The product has
been tagged (bar code, RFID), labeled and ready to sell to customers,…

2) Tax-suspension warehouse
Tax-suspension warehouse means the goods owners' warehouses used to store their imported goods
having enjoyed Customs clearance but the import taxes on which have yet to be paid.
Tax-suspension warehouses are set up to store imported raw materials to supply for the production of
enterprises that own tax-suspension warehouses. Imported materials brought into a bonded
warehouse are not subject to import tax and other taxes. Enterprises may keep both imported raw
materials and accessories for the production of exports and domestic consumption in tax-suspension
warehouses but must separate them for each type and separate customs management by each type.
During the production process, enterprises can transfer a part of raw materials from one type to
another but must make a written request to the local Customs and strictly comply with the registered
export percentage. When importing raw materials, the shipper does not necessarily have to separate
documents and goods into two categories but can send a common batch for both types. But when
carrying out import procedures, a separate declaration must be made for each type. Imported goods
brought into a bonded warehouse may not be sold into the Vietnamese market. In cases where the
Trade Ministry permits the sale of goods on the Vietnamese market, enterprises must pay import tax
and other taxes according to the provisions of law. Advantages of the tax suspension warehouse: For
enterprises with large volumes of import and export goods, import of goods in the form of export
production, the establishment of tax suspension warehouses will promptly serve the needs of storing
raw materials and supplies. (but not paying import duty) is put into production.

3) Bonded warehouses
A Customs Bonded Warehouse refers to a warehouse authorized by the Bureau of Customs to import,
receive, and store goods or materials either for manufacture into finished products for export or storage.
(https://customs.gov.ph/boc)
Being a warehouse or yard area separated from the surrounding area for temporary storage,
preservation or provision of services for goods from foreign countries or from inside the country to be
put into warehouses under the bonded warehouse renting contracts signed. Between bonded
warehouse owners and cargo owners. Goods and means of transport going in or out, stored or
preserved in bonded warehouses must go through customs procedures, be subject to inspection and
supervision by customs offices.

DIFFERENCES BETWEEN LOGISTICS AND DISTRIBUTION

CENTERS
From a physical perspective, there is not much difference between a warehouse and a distribution
center. They all have four walls, a roof, floors, interior space and vehicles' entrances. Visually, its
structure is quite similar. However, following the following definitions (quote KB Ackerman "Words of
Warehousing") will help us better understand the difference taking place within the four walls. A
distribution center is defined as the basis on which wholesale and retail orders are completed and
adds that the term is used to describe the operation at a high rate, as opposed to a regular static
archive [4].
Many people may argue that the Distribution Center is also only from the warehouse and has many
similarities. But if you look at the main functions of the Distribution Center, you will see a clear
difference Distribution centers provide value-added services: Instead of simply being a store,
Distribution Centers provide a multitude of services to customers of external or internal function
rooms. Company. A well-organized and well organized distribution center will provide services such
as Transport, Cross-docking, order fulfillment, labeling and packaging along with any services needed
to complete the process. Order period, including order processing, order preparation, shipping,
receiving, shipping, handling of returned goods and performance measurement.
Customer-centric distribution center: While the warehouse focuses on optimal methods of storage
costs, the sole task of the distribution center is to provide the best service to its customers.
Technology-driven distribution centers: Today's distribution centers must have advanced and
advanced order processing, transportation and warehouse management systems to carry out
activities such as: Receive goods, scan barcodes, locate and store products efficiently, unloading &
loading. Order processing and loading planning. The distribution center focuses on relationships:
Whether the customer is an outside company or internal units, a distribution center must continually
focus on meeting customer requirements. The distribution center is a very important link between
supplier and customer and therefore requires management not only in relation to customer needs but
also in terms of effective methods and optimization. Most expensive to meet those needs. In contrast,
in most cases, an ordinary repository focuses only on cost optimization with little regard for customer
service [5].

III. SOME INADEQUACIES OF WAREHOUSING IN VIETNAM

The exporting activities of Vietnam have a particularly high proportion of logistics because our
country's exports have a high content of imported raw materials. It is estimated that
70-80% of the value of Vietnam's exported garments is the value of imported raw materials and
accessories. The corresponding figure for exported footwear is 50%. With this characteristic, Vietnam
has considered as a country with strengths in logistics development thanks to the 3,000 km long
coastline, with many important positions in international maritime transport, 49 seaports and nearly
250,000km of road.
Despite many advantages, according to the World Bank, Vietnam's logistics infrastructure is very
limited. The first is a cumbersome, confusing and inconsistent system of policies.
For example, CaiMep - Thi Vai port is expected to be a deep water port within Southeast Asia. But
due to planning inadequacies, this port has very low utilization, not enough scale to become a
transshipment hub. In addition, although there are only about 25 multinational logistics companies
operating in Vietnam such as DHL, UPS, FedEx, foreign enterprises account for 70-80% of the
logistics market share. Meanwhile, most Vietnamese businesses act as subcontractors or agents for
foreign companies. This situation also shows that the rate of outsourcing logistics services of
Vietnamese companies is quite modest at 25-30%, much lower than China (63%) and Japan (40%).

WAREHOUSING DEVELOPMENT

A. Cut back on Procedures WB said that building a commercial logistics service industry with higher
competitiveness could be a driving force for sustainable growth in the coming time of Vietnam thanks
to the positive impact on productivity and ability. Competition of the business. A more efficient
transport and logistics system will play a significant role in improving productivity in the future. By
improving the reliability of the supply chain and strengthening transport and warehousing systems, it
will help manufacturers, transport, and logistics service providers, and trade management agencies
minimize avoidance can be avoided, thereby reducing business costs and enabling Vietnam to
absorb world market demand, attract investment and create jobs.
In addition, improving the efficiency of the logistics industry is also consistent with the long-term
orientation of promoting export-led growth of Vietnam. Vietnam's export activities have a particularly
high proportion of logistics because Vietnam's export goods have a high import content. For example,
it is estimated that 70-80% of the value of
Vietnam's exported garments is the value of imported raw materials and accessories. The
corresponding figure for exported footwear is 50% [8]. However, a summary of the World Bank's data
sources shows that Vietnam's logistics costs are now higher than in other countries in the region due
to supply chain instability. Therefore, the World Bank recommends a number of key solutions to
improve the efficiency and cost of logistics operations in Vietnam. That is, minimize paperwork in the
clearance process, import and export operations; Strengthen links between remote areas and deep-
water ports at the southern and northern gateways. At the same time, creating conditions for
international firms to participate in the market of third-party logistics services, encourage cooperation
between domestic and foreign enterprises to participate in the market. Promote a more sustainable
supply-demand balance in the trucking industry. The first solution is to minimize paperwork in the
clearance process, import and export operations; ensure circulation of trucks, barges, on adequate
infrastructure, minimize procedural delays. In parallel with the reduction of procedures, it is necessary
to create conditions for international firms to participate in the market of third party forwarding and
logistics services; encourage coordination between domestic and foreign enterprises to participate in
the market; create conditions for enterprises to access credit capital to increase the scale and
modernize their means. However, there is still room for improvement in infrastructure. In particular,
the deep-water ports in CaiMep - Thi Vai need to be strengthened connectivity conditions on the
mainland as well as waterway connections with Ho Chi Minh City and surrounding areas. This may be
part of the solution to reduce the vacancy of these ports at present. For the Red River Delta, the
construction of LachHuyen port (Hai Phong) is a priority, but this program also faces risks of unclear
financial structure. Moreover, the management of supply and demand in the Northern port cluster
needs to be strengthened to avoid repeating the same mistakes as the Southern region has made. In
particular, concentrated warehousing is still a new concept in Vietnam and much work remains to be
done. Accordingly increasing the use of information technology infrastructure in logistics activities,
especially on the automation of customs clearance processes, the widespread use of GPS systems,
weighing equipment in the field of road transport. , as well as enhancing the efficiency of axle load
management for trucks moving on national highways. These problems and advantages to overcome
and make use of all need close cooperation between the concerned branches. As a middle-income
country in the transitional period, Vietnam has reached the level where quality has become an
essential element, no longer a minor element in improving competitiveness, especially in the case of
the logistics industry.

B. Efficient Warehouse Management to Reduce Costs

Labor costs are currently on the rise in many markets, while economic growth has slowed down. At
the same time, facing the problem of minimum wage increase requires managers to find solutions on
how to achieve maximum productivity per hour of labor. In an article about the minimum wage in
Seattle, we consulted readers on how they improve productivity through incentive pay and raise
wages. Although opinions have been collected over the weeks, no one thinks that the preferential
salary policy and salary increase help optimize productivity. Inventory always accounts for the
majority of asset value in the balance sheet of businesses operating in the form of multi-channel.
Therefore, if dividing, arranging goods in rows in combination with strict location control will support
tracking the status of goods in the warehouse and throughout the implementation process [9].

1) Strictly control the amount of input and output

The process requires the attention of managers because errors in the process will be a threat to the
business growth of profits. Exclusive cooperation with the carrier, increasing the likelihood of success
when negotiating cost reduction in some stages without compromising service quality.

2) Simplify processes - cut costs

The physical process and steps involved in the product flow as well as the order completion process.
In short, the simpler the process, the less labor-intensive the process is, so the cost is lower

3) Achieve the set KPIs

Be aware of your labor productivity and delivery costs, the cost of a particular package and each
delivery. It is possible to evaluate and recommend cost-cutting measures. These indicators are
measured and set specifically managers need to send regular feedback to employees, the
performance reports of each individual and each department. When there is interaction, labor
productivity will be higher.
4) Building an effective management team
What to do to optimize the entire operation process. Managing all aspects of the process significantly
affects workers' costs, morale, and quality of order fulfillment. So, what are their individual needs?
What information should be provided from businesses to help management teams understand the
nature of goods, customers, and suppliers? What training resources are available online or locally?
5) Use management software
Using software to manage the warehouse helps businesses to promptly and accurately capture the
amount of inventory in stock, goods that have been or are about to expire, errors, returned goods,
etc. can offer timely handling plans (buy more goods, quickly liquidate goods that are about to expire,
unsold goods from the previous season, ...). The software can only be changed by a person who has
the right to decide in warehouse management so it will limit the occurrence of errors. Speed and
accuracy have been improved, thus significantly reducing the time and cost of handling delivery
requests to customers in accordance with regulations.

Warehouse management features on warehouse management software help businesses capture the
situation of import-export - inventory according to categories, groups, and details to each material and
goods in many warehouses. The software satisfies all methods of calculating ex-warehouse prices
and provides a full range of forms of delivery notes, warehousing tickets, warehouse cards, general
inventory books, detail books of supplies, goods, ... according to regulations [10].
In addition, the software also has many special features and utilities suitable to the warehouse
management characteristics of enterprises in all areas such as: Tracking goods by the lot expiry date,
specification codes, single conversion. Calculating positions, making minutes of inventory, controlling
inventory according to norms, setting the minimum inventory level for each supply and goods.
CONCLUSION
Logistics is an extremely important process and is closely related to other processes such as
production, transportation, .The current development of logistics is necessary and highly influential
work to countries' economies. Therefore, investing in logistics as well as solving logistics
inadequacies in Vietnam is an extremely difficult problem. Simplifying procedures is only one solution
to minimize logistics costs in Vietnam due to instability in the supply chain. In addition, the
construction of additional warehouses and connecting warehouses with roads and ports is also a
radical solution to increase the ability of goods circulation as well as reduce logistics costs. (Nguyen &
Nguyen, n.d).

Factors To Consider While Selecting A Warehouse

Warehouses are important links in a supply chain network at local or globalized market levels. The
warehouse location in the supply chain network determines the efficiency and speed of supply chains.
In the present context, supply chains are competing with each other, mainly in terms of delivery lead
time and overall product cost. Warehousing processes contribute to the increased speed of material
flows in supply chains. This is what you need to keep in mind while selecting a warehouse.

A warehouse is a large building where raw materials or manufactured goods may be stored before its
distribution for sale. In general practice, goods from the manufacturing unit are sent to a warehouse
from where they are issued to different sellers in accordance with the demand in the market. To
succeed in certain demand areas, firms must have a warehouse presence. Supply chain
management, besides being about the flow of goods, what to produce, how much to produce and to
share information at different levels, is also about how much to store at each stage of the process,
and most importantly, to select the location for warehouse, be it local or global.

Every firm tries to make its supply chain more efficient to achieve certain objectives. In order to
achieve supply chain objectives such as market expansion, market penetration, and customer
support, factors related to warehouses play a major role. Thus, it becomes important for a firm to
make various decisions about the layout, location, and design before selecting a warehouse.
Supply chain management is highly influenced by site selection and product quality. Capital
investment, operating expenses, and customer service are all affected by decisions regarding
warehouse location selection.

Essentials of a Warehouse
Warehousing, in the present day, has become one of the most important enablers for an effective
global supply chain network. Today, various dimensions of the supply chain, such as flexibility,
shorter lead times, and at the same time, corporate profitability are easily achieved through
warehousing, has observed that business is an economic enterprise and hence the main goal of its
shareholders is to maximize profit.

The optimal location of the warehouse ensures the success of supply chains in terms of low
cost and more profit. It becomes inevitable for the firm to lay stress on deciding the perfect location
among various alternatives present for setting up and selecting a warehouse.

Thus, the amount of investment done in setting up and developing a warehouse should
always follow a close analysis directed towards finding out the most optimal locations
amongst the various location alternatives present. Adequate space, customer service,
favourable traffic connections with suppliers and key markets, easy freeway access, proximity
to trains and airports, and a qualified workforce are some of the factors that a warehousing
location study must consider.

Warehouse location selection is a very challenging job because location selection, once
implemented, is irreversible, and hence any wrong decision can lead to high losses for the firm. A
firm, before setting up a warehouse, faces the challenge of finding the most optimal location for the
warehouse.

A warehouse should be situated in such a location from where it increases the overall efficiency of the
supply chain of the firm, and in no way causes a delay in the shipment process, or increases the cost
of production. For example, in an automotive organization, a break in the production line
causes huge losses to the organization. Thus, the warehouse should be situated in such a
place where the production parts are delivered to the manufacturing plant without any delay.

If a company’s warehouse stores finished products, then it becomes necessary that the market is
proximally situated so that there is never a shortage of the product in the market during the high
demand situation, and the product is always delivered at the correct time in the market. A few have
suggested a decision-support system (DSS) for selecting a warehouse for the design, management,
and control of warehousing systems, but in the early stage, proper site selection of the warehouse is
crucial to improve the performance of the entire supply chain.

Specifically, in the present situation of a globalized market and e-commerce, warehouse site selection
has become the most important strategic decision for organizations across all manufacturing sectors.

Site Selection Criteria For Warehouse

A dynamic market scenario in terms of reducing product lifecycle, shorter delivery lead time,
increasing stock-keeping units (SKUs), and increasing customer expectations in terms of service
quality have created key challenges for manufacturing organizations to survive. In order to meet
these challenges, organizations need to optimize their supply chain networks.

While optimizing the supply chain network, efficient product delivery from the manufacturing plant to
the warehouse and then to retailers is very important. Therefore, the optimal location of a warehouse
in a supply chain network has become a strategic decision for top management. The location of the
warehouse also influences decisions related to lot sizing and scheduling issues in supply chains.

The selection of a warehouse can be an overwhelming and confusing experience. All companies are
likely to have very specific warehousing needs and are difficult to understand all the complicated lingo
and sales pitches to decide which warehouse locations are a good fit for the business. Below outlined
are the most important considerations that should be thought about while choosing or selecting a
warehouse.

10 factors to consider while selecting a warehouse location

Location

Considering the current shipping locations of the companies suppliers, as well as the delivery
locations that are to be arranged for customers, is crucial for selecting a warehouse. Where are most
of these deliveries being made? Are the warehouses located in the optimal zones to reduce and
optimize the costs for both the company and the client?

Access
Any public warehouse that is looking for contracting or is ready to convert as a major distribution
centre will need to be easily accessible from major highway networks. Additionally, if the company
has a majority of importing or exporting operations for a great deal of material, Warehouses should
also be nearer to major port locations with strengths aligned to the product type that is being
stored or manufactured.

Transportation costs of the materials can be largely affected by different kinds of variables, which can
have an impact on how a business is. While choosing a warehouse, consider the following points in
concern with the transportation of products, be it to or from the warehouse.

 Accessibility to highways and exit ramps

 Public transportation access
 Highway interconnectivity
 Average traffic speed and volume
 Traffic peak hours
 Proper road signs and signals
 Road safety and conditions

Congested roads, highways, and bad signaling can skyrocket the fuel consumption and accident
rates and is time-consuming as the situation is tried to get under control for the products to be
delivered to the customers. This time wasted can increase shipping costs, and negatively affect the
synergies with the customers.

Client Profile

Does the company recognize any of the existing warehouse clients? On average, what is the square
area each of those clients occupies? If 50 customers who only occupy a small amount of the
warehouse space exist, that is considered a warning sign that the warehouse doesn’t have the
experience to attract larger companies with much more sophisticated requirements to command and
maintain larger square footage utilization.

Storage Area

If the company has strict storage and firefighting requirements for materials that are hazardous or
flammable, or even in the case of food items, it needs to make sure that the location chosen for the
warehouse properly suits and handles the company’s needs. Being an e-commerce order fulfilment,
or logistics tech company, one needs to understand the approaches to handle products that require a
chemical system, versus a water-based system. These companies should also be considering the
environment and should know if there are any streams or water bodies in close proximity.

A great deal of unwanted disaster is avoided by being proactive and checking the storage
requirements of the warehouse location. It’s important to not only ask owners of the warehouse
storage area but more specifically, what is presently available is also important. Do the owners of the
warehouse anticipate any opening available for more storage area in the future to accommodate the
projected growth?

Association Memberships

Are there any active members of well-known associations who can lend extra credibility options to the
warehousing operations? If the companies demonstrate their commitment to being a member of the
IWLA (International Warehouse Logistics Association), for example, it shows that they are interested
in presenting themselves among similar flocks for learning, gaining resources for improvement, and
demonstrating enriched value over time.

Experience

Check established date of the existing warehouse to ensure a good balance of age, displaying their
weathered qualities and the test of time, combined with the newness of the facility with modern
technology and additions to make things flow efficiently. Aged setups can mean antiquated
processes, but too new can mean that kinks need to be still worked out, so to speak.

Additionally, if they do have the experience, in which branch or industry did the warehouse area or
structure was used for? It’s a simplistic example, but for food manufacturers and distributors crossing
their FSMA, “T’s” would definitely want a warehouse with loads of experience meeting strict food
grade standards.

Employees

Another essential aspect to consider while making decisions about warehouse location is to find out if
they have a reliable and experienced workforce. Do the workers have the necessary skills to handle
the products? Do the services and setup come at a reasonable price for the company? It should also
consider the local demographics of the area. Aside from the cost and availability of the workforce,
manufacturers should find out about the skills of the workforce.

A gap will result in low levels of customer service and reduced competitiveness and productivity.
Compare the size of the facility to the number of employees to determine if it’s a good fit for the kind
of service the company requires. Are the employees of the warehouse knowledgeable about the
types of services that need to be provided? Will you have a “go-to” account representative whose
primary responsibility it is to help make specific needs (and the other clients’ requirements) are
addressed?

Processes

How many points of entry do the warehouses have, and what is the system to manage the inbound
vs. outbound traffic in the facility? Do these structures have a standard staging procedure? What are
the standard services, included in the price vs. special assistance provided for an extra fee? Can
these warehouses handle the inspection, storage, dispatch, stocking, reverse logistics, packaging,
organization, or reporting duties?

Risk
While using an outsourced vendor for warehousing, it can remove a large part of the risks associated
with logistics. The company partners will shoulder most of this burden as they provide assistance to
resolve potential issues and work proactively to decrease the traditional problems associated with
moving products with heavy machinery.

Nevertheless, the company’s role must be active, while mitigating that risk, by asking warehouse
owners about the incident rates, safety plans, insurance coverage, and damage plans. Always ask to
see copies of the insurance coverage, and make specific plans and reported incidents to marry with
the company’s expectations. It is crucial to find out how they handle issues when the problems arise
to practice due diligence in protecting the company from weak vendor choices.

Technology

What kind of Warehouse Management System do the warehouse owners use? Can the company’s
system for processing orders and managing the supply chain integrate with theirs? Which kind of
equipment are they utilizing for handling?

If the product lines are multiple with assorted SKUs, the company may need to search for
warehouses that have integration with much-advanced robotics or sorting technologies like conveyor
belt systems to decrease human error while loading the trucks.

In any case, the sophistication of the product lines, at a minimum, needs to seek a partner that can
provide regular reporting regarding the company’s product moving into and out of their facility—
preferably on a web-based platform that can be accessed at any time, from any location. As more
advanced technology is integrated for the warehouse management and logistics sectors, much is up
to warehouse managers and logistics firms to stay up-to-date on the latest innovations.

Many upcoming technologies, such as Pick-by-Vision, Electronic Data Exchange, and the utilization
of drones, are soon to become mainstream in the industry. The implementation of adept technologies
will be critical to the smooth operations of warehouses and supply chain processes.

What Needs to Be Done Next?

There are no doubt retailers are going to need to expand warehouse space and think differently to
meet evolving consumer expectations. Selecting the ideal warehousing and distribution center is
not without its challenges. Still, by considering the factors above, companies can ensure they choose
the space that best fits their needs and operations.

Conclusion

It is concluded that, whenever a warehouse location is considered, the factors of flow, accessibility,
and space must be keenly crosschecked, balanced so that the demand for throughput, that is, the
volume of products being handled and the time parameters to be fulfilled. Similarly, the most optimal
flow of goods through the inbound and outbound supply chain should be first considered while
deciding the necessary number and locations of warehouses.
Most importantly, concerns in the structural and capacity requirements of an individual for selecting a
warehouse need special attention as it depends on some of the most critical service offerings, the
characteristics of the products handled, and types of activity that are expected to be conducted within
the facility. ( iThink Logistics.2020 ).

Activity 1
Reference

1. Nguyen, M H, Nguyen, TCM. (n.d). Importance of Warehousing in Logistics System

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V2N8P78Y20.pdf

2. Sumitri, Shand (Shand, n.d). Warehousing: Function, Benefits and Types of Warehousing

Retrieved on November 17, 2023 from: https://www.yourarticlelibrary.com/marketing/marketing-

management/warehousing-function-benefits-and-types-of-warehousing/27952

3. iThink Logistics ( 2020 ). Factors To Consider While Selecting A Warehouse

Retrieved on November 20, 2023 from: https://www.ithinklogistics.com/blog/factors-to-consider-while-

selecting-a-warehouse/