Any business that stores items in a warehouse knows that effective warehouse management can mean the difference between success and failure in the retail world. However, this process can be a monumentally difficult task when there are so many moving parts in a warehouse.

Despite the difficulty of establishing good warehouse management practices, it is a critical component of your company’s success. Below, we will look at everything that goes into warehouse management, including its various principles and processes, and how implementing a warehouse management system can help streamline the process.


What Is Warehouse Management?

Warehouse management refers to the various principles and processes involved in running a warehouse’s day-to-day operations. Some of these processes include receiving and organizing warehouse space, scheduling labor, managing inventory, and fulfilling orders. Overall, warehouse management entails optimizing and integrating each process to ensure that all aspects of a warehouse operation work together to boost productivity and efficiency and reduce costs.


The 5 Principles of Warehouse Management

Understanding the fundamental principles involved in warehouse management can help you focus your efforts on improving the efficiency of your operation.


A warehouse operation must understand its goals in relation to the overall business to ensure that it makes the most efficient use of warehouse space, labor, and equipment.


Warehouse management also entails coordinating complicated processes with numerous moving parts, including employees, equipment, orders, and inventory. Warehouse managers must be able to track each process to ensure that everything runs smoothly, all orders are fulfilled correctly, and they address any critical issues that arise.


It’s also critical that warehouse managers adapt to changes on the fly and adjust workflows to increase efficiency, including rearranging warehouse space, rethinking processes, or adjusting to shipping delays.

Customer Focus

When it comes to customer service and satisfaction, on-time delivery of products is one of the most critical metrics. Warehouse managers must be able to fulfill orders quickly and accurately to ensure customers receive their orders on time.


Even if everything appears to be running smoothly, that doesn’t mean everything is running as efficiently as it could be. Warehouse managers must be able to identify potential changes that could improve operations.


5 Essential Processes of Warehouse Management 

Inventory management, distribution, shipping, storage, and reporting are all affected by warehouse management.

Inventory Tracking

Inventory tracking is the process of keeping track of stock levels to determine which products you have in your warehouse, where they are stored, and whether they are in transit from a manufacturer or on their way to a location.

Picking and Packing

Picking and packing are two essential functions in every warehouse.

Picking is the process of retrieving specific quantities of products from a warehouse using a pick list, which includes all of the items that an employee must locate and deliver to the packers and information about each product’s name and additional inventory information. After an order is picked, it is given to a packer, who is in charge of fitting items into appropriate shipping containers, adding any necessary packing materials, and applying a shipping label.

Receiving and Storage

Receiving and storage refer to a warehouse’s ability to receive inventory and stow it away in a storage area. Each product has instructions on how it should be unpacked, retrieved, picked, packed, and shipped.


Shipping carriers pick up orders from the warehouse and deliver them to their final destination based on customers’ delivery options.


Warehouse operations require a lot of reporting that allows warehouse managers to ensure complete visibility of real-time stock levels, order fulfillment accuracy, and the total number of orders shipped on time.


What Is a Warehouse Management System?

Optimizing warehouse management can be complex due to the numerous factors involved. As a result, many businesses turn to warehouse management systems for assistance.

A warehouse management system (WMS) is a software solution designed to optimize warehouse operational processes. A WMS can support and optimize every aspect of your warehouse, including forecasting sales, monitoring and reporting productivity, and sharing data with other software products, such as accounting software and transportation management solutions.

WMSs are a vital aspect of warehouse operations because they replace manual processes and guesswork with streamlined processes that save time and money and provide a more accurate picture of what’s going on inside a warehouse without the need for ongoing audits. Warehouse management software also gives warehouse managers the tools they need to make strategic improvements and day-to-day operations.


Benefits of a WMS

WMSs play a critical role in ensuring accurate, on-time delivery. Each warehouse management process previously mentioned in this article must be fine-tuned to optimize your warehouse operations. Here are a few of the short-term and long-term that a WMS can provide for your company.

Boost Inventory Visibility

WMSs allow warehouse managers to quickly view exactly how much inventory is in the warehouse at any given time. This will enable businesses to maintain accurate counts of all items and reorder supplies as needed, avoiding potential surpluses or shortages due to erroneous data.

Improved Warehouse Organization

When employees are able to view inventory levels accurately, the overall organization of products is much easier to implement and track, including where items go and how they’re used.

Create Customer Loyalty

A company that prioritizes warehouse management knows precisely how many products it can deliver and accurately estimates how quickly it can distribute them. With a WMS, customer satisfaction will increase due to increased transparency, as will buyer trust in your business and your products.


Streamline Your Warehouse Operations with High-Quality Industrial Shelving

While warehouse management is a complicated topic that necessitates a great deal of forethought and planning, the better prepared you are will inevitably help you make better decisions for your business. With efficient warehouse management practices, companies can improve day-to-day warehouse operations and boost their company’s competitiveness, resulting in greater long-term success.

A crucial way you can improve your day-to-day warehouse processes and operations is to invest in high-quality, customizable, user-friendly industrial shelving.

For over 15 years, BILT Industries has been a leading manufacturer of high-quality industrial shelving solutions. We understand the importance of running a smooth warehouse operation and remain committed to helping Kansas City businesses reach their full potential and provide them with the solutions they need to do so.

To learn more about our high-quality industrial shelving solutions and how they can help improve your warehouse operations, contact BILT Industries today to schedule a free consultation with one of our experts.