8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them

WAREHOUSE OPERATIONS

6 Primary Warehouse Processes & How to

Optimize Them
The six fundamental warehouse processes comprise receiving,
putaway, storage, picking, packing, and shipping. Optimizing
these six processes will...

by
Hector Sunol

  •  
Mar 24, 2021
  •   11 MIN READ

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8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them

The six fundamental warehouse processes comprise

receiving, putaway, storage, picking, packing, and shipping.
Optimizing these six processes will allow you to streamline
your warehouse operation, reduce cost & errors, and
achieve a higher perfect order rate.

Click Here: Find the Right Solutions to

Optimize Your Warehouse Processes

In this article, we will discuss each warehouse process in

order to understand and effectively optimize your
operations. After each process is explained, general
recommendations to optimize each one will be discussed,
and in-depth optimization resources will be linked for your
convenience.

Almost all quality improvement

comes via simplification of design,
layout, processes, and procedures.
Tom Peters

1. Receiving
Receiving is the first warehouse process and one of the
most crucial. To perform the receiving process properly,
the warehouse should be able to verify that it has received
the right product, in the right quantity, in the right condition,
and at the right time. Failing to do so will have consequent
impacts on all subsequent operations

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8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them

Receiving also involves the transfer of responsibility for the

goods to the warehouse. This places accountability on the
warehouse for maintaining the condition of the goods until
they are shipped. Properly receiving cargo will allow you to
filter out damaged goods and avoid liability for them.

How to Optimize:

The aim of optimizing the warehouse receiving

process is to receive cargo efficiently and correctly
and to avoid accumulation at the receiving docks.
Solutions such as power pallet trucks and conveyors
will allow you to unload cargo and clear dock areas
faster and more efficiently. In addition, dimensioners
automate the capture of weight and dimensions of
parcels and pallets to accelerate your receiving
processing and obtain certified measurements. Finally,
software such as labor management systems and
dock schedulers allow you to properly allocate the
right amount of personnel by accurately anticipating
upcoming shipments.

To learn more warehouse receiving best practices, you

can read our article here.

Pallet Dimensioning Semi-Automated

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8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them

2. Put-Away
Put-away is the second warehouse process and is the
movement of goods from the receiving dock to the most
optimal warehouse storage location. Failing to place goods
in their most ideal location can impair the productivity of
warehouse operation. When goods are put away properly,
there are several benefits:

Cargo is stored faster and more efficiently

Travel time is minimized

Safety of goods and employees is ensured

Warehouse space utilization is maximized

Cargo is easier and faster to find, track, and retrieve

How to Optimize:

The aim of optimizing the putaway process is to move

goods for storage to their most optimal location in a
fast, efficient, and effective manner. Software such as
slotting and space management systems
automatically assign optimal spaces for each cargo
to allow for a streamlined putaway process and
maximized space utilization. In addition, putaway
mobile applications and devices direct clerks to store
cargo in the right location.

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8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them

To learn more warehouse putaway best practices, you

can read our article here.

3. Storage
Storage is the warehouse process in which goods are
placed into their most appropriate storage space. When
done properly, the storage process fully maximizes the
available space in your warehouse and increases labor
efficiency.

How to Optimize:

Optimizing your storage process is only possible when

the right KPIs are properly tracked. Having a software
that automatically calculates your warehouse storage
utilization and tracks the right storage KPIs will allow
you to determine how efficient each aspect of your
storage process is. Slotting optimization systems can
also help you by assisting with the allocation of the
best storage location for a given cargo. Lastly, utilizing
the right warehouse storage system according to the
size of your facility and product mix allows you to
maximize your horizontal and vertical spaces while
improving warehouse efficiency.

To learn more about warehouse storage best

practices, you can read our article here.

Image Source: Rite Rack

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8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them

4. Picking
Picking is the warehouse process that collects products in
a warehouse to fulfill customer orders. Since it is the
costliest process in the warehouse, comprising as much as
55% of the total operating expense, optimizing this process
will allow you to reduce costs significantly and increase
your warehouse efficiency. Streamlining of this process
should also focus on achieving higher accuracy, as errors
can have a direct impact on your customer satisfaction.

How to Optimize:

One of the ways to optimize the picking process is

introducing the right technologies. Technologies such
as mobile and wearables can streamline the picking
process because they allow clerks to view picking lists
wirelessly, access systems in real time, and scan
anywhere in the warehouse. Other viable options
include conducting an ABC analysis to improve your
warehouse layout, selecting the right picking
methodology, and utilizing software to guide clerks in
properly executing the picking process.

To learn more warehouse picking best practices, you

can read our article here.

Also, here is a short video to learn how mobile and

wearables can impact your picking process:

Warehouse Technology: Mobile and

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8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them
Warehouse Technology: Mobile and …

5. Packing
Packing is the warehouse process that consolidates picked
items in a sales order and prepares them for shipment to
the customer. One of the primary tasks of packing is to
ensure that damages are minimized from the time items
leave the warehouse. Additionally, packaging must be light
enough so as not to increase the weight of the goods and
minimal enough to control packaging costs.

How to Optimize:

Optimizing the packing process can be done by

utilizing software to guide people in executing the
tasks. Provided that a packing system has all the
necessary data, such as dimensions and weight, the
system can automatically determine the type and
amount of packaging material that will keep the item
safe and packing costs low.
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To learn more warehouse packing best practices, read

this article here.

6. Shipping
Shipping is the final warehouse process and the start of the
journey of goods from the warehouse to the customer.
Shipping is considered successful only if the right order is
sorted and loaded, is dispatched to the right customer,
travels through the right transit mode, and is delivered
safely and on time.

Previous processes, such as ordering, putaway, picking,

and packing, are also vital to the success of shipping
because they greatly affect whether the order is fulfilled
accurately and safely.

How to Optimize:

To optimize the shipping process, having software

systems to streamline many of the tasks is critical.
Labor management systems let you allocate the right
amount of resources to prevent over or under
allocation. Having a shipping mobile application and
device lets you have the right information on hand
and in real time to verify shipments on the fly. And
loading systems can let you have guides that clearly
instruct how to load cargo safely and efficiently.

To learn more warehouse shipping best practices, you

can read our article here.
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8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them

The warehouse industry is growing in response to

developments such as the rise of e-commerce,
globalization, and the trend of outsourcing warehouse
services. These major changes in the market are
opportunities waiting for you to exploit by taking swift
actions to optimize your warehouse processes. Hopefully,
this article has helped you understand the objective of
each process and helped in providing tips for optimization.

If you are ready to find the solution to optimize any of the

above mentioned warehouse processes, go to
our Solutions Finder tool.

If you want more warehouse content or are curious about

“Warehouse Digitalization,” you can follow us on LinkedIn,
YouTube, Twitter or Facebook. You can also message us
through our contact page if you have other inquiries. We’ll
be very glad to help.

WRITTEN BY

Hector Sunol

Hector has 17 years of experience leading IT

operations for large and mid-size businesses. He
holds an MBA in Management and Bachelor's degree

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8/16/22, 2:37 PM 6 Primary Warehouse Processes & How to Optimize Them

in Information Technology. Hector has a passion for

books and creating opportunities for others to grow.

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