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What are the important steps in the warehouse management process of companies?

What are the important steps in the warehouse management process of companies?

One of the most important and time-consuming activities that are carried out in the company’s warehouse is warehouse management. Company warehousing is a process in which inventory is accurately counted. commodity-oriented companies to control warehouse inventory; At least once a year they carry out the warehouse management process.

In this article, we will have a deeper look at the goals of warehouse management of companies. We also examine the various storage management methods and the steps involved in this process.

What is warehousing?

The inventory of each company’s warehouse is considered the commercial asset of that company; Therefore, the accounting unit must have accurate statistics of the warehouse inventory. The warehousing process of companies includes the physical control of the warehouse space, manual counting of goods inventory and checking its non-contradiction with the inventory registered in the warehousing and accounting system. Companies usually carry out warehouse management one or more times a year in order to know the inventory, quantity and quality of goods.

In the company’s warehousing, the relevant officials determine the amount of inventory of each item and its exact location so that accurate information about the asset is recorded in the balance sheet. They also investigate problems such as damaged products, expired products, lost orders, poor control or theft.

The warehousing team consists of the warehousing supervisor, control group, storekeeper and counting groups.

  • Warehousing supervisor:

Determining warehousing instructions, managing warehousing operations, controlling and approving the way goods are arranged, separating the stock of trust goods, scrap stocks, installed labels and expired goods is the responsibility of the warehousing supervisor.

  • Controller:

Supervising the process of warehouse management, overall supervision of counting operations by counting groups, controlling the entry and exit of goods, responding to issues and problems of counting groups, reporting problems to the supervisor, collecting counting sheets at each stage and delivering them to The warehouse supervisor is in charge of the warehouse control unit.

  • Counter group:

Counting groups are often two people. One person is responsible for counting and the other is responsible for recording information. The counting team must count the items in the warehouse carefully and record the accurate information on the counting tags.


What are the benefits of warehousing for companies?

The warehouse of any company is one of the important parts of that company and warehouse management is an important process for companies. In the following, we examine the most important advantages of warehouse management.

  • Stock management at the end of the company’s financial year allows accurate information to be recorded in the financial statements.
  • The performance of the accounting unit and warehouse is measured and human error is fixed.
  • Unusable, expired, or damaged inventory is removed from the warehouse.
  • With warehousing, a report is prepared of the exact inventory of goods, the amount of production and the amount of consumption of each item.
  • The excessive accumulation of goods is prevented and the goods whose expiration date is near are sold at the right time.
  • The physical order of the warehouse is measured and the warehouse is sorted if needed.
  • Regular and correct warehousing helps companies to increase the efficiency of warehousing operations.
  • Warehousing provides managers with useful information about inventory and market needs. This information helps companies to optimize their production planning.
  • Regular warehousing gives companies information about raw material consumption patterns and trends. This allows the company to identify the needs of the market and optimize its production.
  • With warehousing, excessive accumulation of goods in the warehouse is prevented and losses due to goods damage are reduced.
  • Warehousing allows the goods to be properly ordered. For example, the best-selling products are stored in the entrance shelves of the warehouse.

What are the types of warehousing companies?

Company managers determine the number of annual warehouse operations depending on the size of the company and their management policies. According to the standard, manufacturing companies or companies with warehouses must carry out warehouse management at least once. To manage chain stores or large companies, it may be necessary to carry out more warehouse operations throughout the year.

Types of warehousing companies include the following:

  • Annual warehousing:

This type of warehouse management is done once a year. At the end of the company’s financial year, the inventory must be carried over to the next year, so the inventory must be counted. The numbers obtained in warehouse management are used in compiling the balance sheet and accounts for the financial year.

  • Mid-term warehousing:

Intermediate stock management is done in shorter periods of time than annual stock management. This method greatly helps to make the year-end stock management more accurate. Interim warehouse management can be done in six-month and three-month periods.

  • Random warehousing:

Random warehousing is done in short periods of time. The purpose of this type of warehouse management is to ensure the correctness of the inventory registered in the warehouse and the possibility of misuse and theft from the warehouse. In this method, a number of goods are counted randomly.

  • Continuous warehousing:

In the continuous warehouse management method, every week a specific part of the warehouse is identified and the same part is counted. This makes it possible to check and update all warehouse inventory throughout the year without having to close the warehouse. In cases where the warehouse goods have a high financial value, this type of warehouse management is done.

  • Sudden warehousing:

Sometimes, for a specific reason, total or partial warehouse management is required. For example, when the storekeeper of the company is going to change; To deliver the warehouse to the new warehouseman, we need warehouse management. A change in the production procedure or any change in the management or production of goods can be the reason for a sudden hoarding.

What are the warehouse management steps of the company?

  1. Decide on the date and time to start warehousing.
  2. If you do annual stocking, stop all your buying and selling on stocking days. Otherwise, the obtained statistics will not match the numbers you get from the warehouse management process.
  3. Determine the role of all the people involved in the warehouse management process and determine the duties of each person.
  4. Prepare the necessary tools, including forms, counting tools, tags, etc.
  5. The number of the last receipt and warehouse transfer should be noted.
  6. The members of the warehousing group should start their work.
  7. Safe goods, waste goods and damaged goods should be separated.
  8. Identify and separate stagnant goods.
  9. The control unit monitors the counting process and checks the discrepancies.
  10. If there is a discrepancy in the initial count, a second count should be done.
  11. After separating the separated goods, they are reported from other products and the goods are arranged in the correct way.
  12. The counted sheets must be approved and signed by the counting supervisor.
  13. Prepare a meeting report on how to carry out warehouse management.

After the process of counting goods and stock management is completed, the value of the inventories is determined and the data is updated in the accounting program, inventory and other relevant departments. Also, after the items are counted, the running out stocks are re-ordered.

What is the use of the product tag (counting label) in the company's warehouse management?

The use of counting labels is very important in warehousing. The product tag is used in warehouse management so that the products are not counted repeatedly and no product is missed in the counting. By collecting the tags after the end of counting, you can get the final number of each item. Using warehousing tags, you can easily identify, categorize, track and manage warehouse inventory. These tags are connected before the start of stock management and collected after stock management to reach the final stock number of each product.

The labels include the serial number, product code, product name, measurement unit, counting information registration section, date of receipt or production, expiration date (if necessary) and the location of the counting supervisor’s name and signature. The product tag can be barcode, RFID, serial number, QR code or plain text.

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Application of warehousing module in ERP system

Warehouse management is very important in the supply chain. The purpose of warehousing is to eliminate the error of inventory registration. By doing the warehousing process correctly, companies can improve supply and demand and minimize costs.

The goods in the warehouse are considered the property of the company and these data are registered in the inventory and accounting system of the company. The data obtained from warehousing should be compared with the values recorded in the financial books and accounting and warehouse software, and the differences should be identified.

The greater the difference between the system inventory and the counted number, it is bad news for your accounting and warehousing system. Differences in warehousing occur due to reasons such as human error, theft or problems related to the supplier. Whatever the problem is, it should be identified and solved in the best way.

Warehousing software optimizes operations related to warehousing. These programs control the entry, exit, movement and delivery of goods. Warehousing software automates part of the warehousing process. In addition to warehouse management software, the use of ERP software is also highly recommended for production units, warehouses and stores. ERP software manages business processes. This software consists of a set of application software, each of which manages the important processes of the organization such as accounting, sales, warehousing, human resources, marketing, etc.

The ERP warehousing module is one of the important ERP modules that has provided the possibility of tracking the company’s warehousing process. By using ERP, you can track warehouse operations well and automate many parts of it. Since the ERP system has an integrated database, the relevant units receive the warehousing results report in their system.

Tips for warehousing goods

  • Some time before the start of warehousing, the start and end dates of the company’s warehousing should be announced in writing to other units so that they can prepare the goods they need before the start of warehousing.
  • Before starting stocking, arrange the items in the warehouse so that counting is not a problem due to scattering.
  • The number of the last forms used at the time of starting the operation, the form of receipt or receipt of the output of all goods imported and exported from the warehouse must be available to the supervisor of warehouse management.
  • In order to increase the counting speed, it is better to prepare the inventory counting list in two copies and make it available to the counting groups.
  • Counting should be sequential; in such a way that it starts from the first shelf and the next shelves are counted in order.
  • When counting items, it is not possible to enter or leave the warehouse.

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