305 OSCM - LOGISTICS

MANAGEMENT

Warehousing, Handling, and Picking Systems

Unit-5

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 Warehousing, Handling, and Picking
Systems
• Warehousing, Handling, and Picking Systems, Warehousing
• Basics
• Storage Facilities Static Storage Systems, Dynamic Storage
Systems
• Conveyors, Discontinuous Conveyors, Continuous Conveyors,
• Sorters
• Packages,
• Loading Units, and Load Carriers
• Picking and Handling
• Warehouse Organization,
• Inventory, Stock and Provisioning Management.

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 Warehousing, Handling, and Picking
Systems:
• Storage Systems to ensure maximum storage of goods and easy access at all times.
• Climate Control for goods that require cooler or warmer environments.
• Inventory Management Software to keep track of inventory coming in and out of
your warehouses.
• Sufficient Staff to keep processes moving according to plans.
• Transportation and Moving Equipment to deliver and transport goods to and from
the warehouse.
• Ample Security to keep the warehouse safe even at downtimes. 
• Static Storage Systems, Dynamic Storage Systems
• Conveyors, Discontinuous Conveyors, Continuous Conveyors, Sorters
• Packages, Loading Units, and Load Carriers,
• Picking and Handling
• Warehouse Organization
• Inventory, Stock and Provisioning Management.

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 What is Warehousing?
• Warehousing is when you purchase goods from
a manufacturer and store them before they are
shipped to another location for fulfillment.
• You may store these goods in a warehouse,
spare room, or other facilities.
• This all depends on how much stock you have,
and how big your business is. If you’ve a small
business your warehousing option doesn’t need
to include transport access.

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 What Are The Functions of
Warehousing?
• The main function of a warehouse is to store
products or goods before moving them to
another location.
• But there can be some secondary functions of
warehousing that enhance a warehouse’s
space.

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What Are The Functions of Warehousing?
• The main function of a warehouse is to store products or goods before moving them
to another location. But there can be some secondary functions of warehousing that
enhance a warehouse’s space.
• Shipment Hub
• When warehouses are placed in a very strategic location, these can become shipping
hubs that receive shipments until they can be moved to other storage facilities across
the country.
• Assembly Line
• Where products are delivered by the manufacturer in several pieces, companies can
allot areas within their warehouse to assemble products for retailers or customers.
• Rental Storage Space
• Whether sales are down, or you possess a warehouse that is too big for your stock at
the moment, renting space in your warehouse to other businesses is a good option
for you if you have space. 

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What Are The Types of Warehousing?
• Private Warehouses: Owned by private entities to
store their own products or equipment.
• Public Warehouses: Owned by a government and
semi-state body. They are available for rent by
private firms to store goods.
• Co-Operative Warehouses: Owned by a co-operative
where private firms can rent space for storage.
• Distribution Centres: Distribution centers receive
shipments of goods and move them fast from A to B. 

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 What Are The Advantages of
Warehousing?
• Improved Inventory Accuracy: Knowing how much inventory you have and how
much you have moved means you can plan for the future more precisely.
• Reduced Overhead Cost: As you improve the running of a warehouse you can
invest more in further development and reduction of costs. 
• Better Staffing Levels: Understanding how busy your business will be over a
period of time will allow you to plan your staffing needs accordingly.
• Protection of Goods: Having a storage facility that fits the needs of your goods it so
important to a business. If you have perishable goods that require refrigeration you
need to ensure that your warehouse lives up to this standard. 
• Central Location: When you source a warehouse close to a customer or
manufacturing hub, you can ensure better transit of goods, decreasing the time it
takes to move products between places. 
• Superior Flow of Goods: The better flow of goods from manufacturer to end
consumer is brought about by understanding the best layout of your warehouse and
how to store goods optimally to move them fast.

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What Are The Elements of Warehousing?

• Storage Systems to ensure maximum storage of goods and

easy access at all times.
• Climate Control for goods that require cooler or warmer
environments.
• Inventory Management Software to keep track of inventory
coming in and out of your warehouses.
• Sufficient Staff to keep processes moving according to plans.
• Transportation and Moving Equipment to deliver and
transport goods to and from the warehouse.
• Ample Security to keep the warehouse safe even at
downtimes. 

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 WHAT IS DYNAMIC STORAGE? 
• Looking for a versatile, flexible storage method that can
adapt to your warehouse’s trends? Look no further than
dynamic storage.
• Dynamic storage puts your most popular items at the
front of your warehouse, making them easily accessible
for your employees during the picking process. And
those storage spaces may look very different from week
to week. Dynamic storage areas can be easily rearranged
to optimize picking and packing efficiency depending on
how your product orders ebb and flow.

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 THE PROS
• Storing items dynamically can be a successful method for
warehouses with quick-moving inventory. If your facility
constantly receives shipments and churn out orders,
dynamic storage’s flexibility will allow you to modify
those storage areas as often as needed. This can be
especially helpful for warehouses that experience large
bursts of holiday traffic, where product popularity and
order rates can change from day to day.
• Grouping these popular products together and putting them
at the front of your warehouse also makes it easier for your
picking team to complete their orders quickly.

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 THE CONS
• Of course, not every warehouse will benefit from such a fluid
system. For example, if your facility’s main purpose is to keep
slower-moving products stored for long periods, dynamic storage
won’t do you any good. This system works best with a warehouse
with little product stagnation; there should be a consistent flow of
orders coming in and products going out. Without this, dynamic
storage’s flexible features won’t be helpful.
• Plus, with continuing adjustments to where products are stored,
there will likely be a learning curve for employees – especially
new ones. Training new employees on this ever-changing system
may take longer than static storage systems, which we’ll jump
into next.

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 WHAT IS STATIC STORAGE?
• As you can guess by the name, static storage is just what it sounds
like – static. This storage method is much more permanent and
often sets aside excess inventory or products that don’t move as
quickly as others.
• Static storage is used differently depending on the facility. For
some, static storage is where pickers go to replenish areas of
dynamic storage. While there may be some movement of products,
changes in inventory for static storage happen much less often.
• Other warehouses may mainly be used for product storage and
aren’t major hubs for delivery or order fulfillment. Static storage
helps them stay organized and keep their products safe on
inflexible shelves.

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 THE PROS 
• When storage locations aren’t being constantly rotated, it’s less likely
that products will get lost. Dynamic storage areas often change too
quickly to assign tracking letters or numbers. Management can
confidently assign organizational labels with static systems, knowing
their locations won’t be in flux.
• Also, it can be hard to get a good read on inventory when products are
moving so quickly with dynamic storage. With static storage,
warehouse teams can easily track if they currently have too much or
too little of a certain product.
• (As another bonus, static storage spaces are also the perfect place for
any unforeseen excess inventory. Instead of clogging up your high
traffic picking spaces, static storage keeps those products out of the
way.)

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 THE CONS

• We’ve been using words like inflexible and permanent to

describe static storage, and for some warehouses, that’s the
goal. But if you’re looking for a method that can easily
readjust as your business grows, static storage can’t offer
that.
• If it’s sincerely unlikely that your warehouse will
experience an overflow of products and need a place to
keep them, static storage could be a waste of space. Those
areas might be better filled with dynamic areas that focus
more on moving products than keeping them long-term.

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 Conveyor system
• A conveyor system is a common piece of mechanical handling equipment
that moves materials from one location to another. Conveyors are especially
useful in applications involving the transport of heavy or bulky materials.
• Conveyor systems allow quick and efficient transport for a wide variety of
materials, which make them very popular in the material
handling and packaging industries.
• They also have popular consumer applications, as they are often found in
supermarkets and airports, constituting the final leg of item/ bag delivery to
customers. Many kinds of conveying systems are available and are used
according to the various needs of different industries.
• There are chain conveyors (floor and overhead) as well. Chain conveyors
consist of enclosed tracks, I-Beam, towline, power & free, and hand pushed
trolleys.

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 Continuous conveyors
• Roller, vibratory and circular conveyors are well-
known examples of standard continuous conveyors.
• They are usually used for piece goods or bulk goods
that are transported from one or more receiving points
to one or more discharge points.
• Continuous conveyors run fully automatic and need not
be operated by anyone.
• As this system runs continuously and without
interruptions, it can transport relatively large quantities
in a short time.

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 Continuous conveyors
• The system is loaded and unloaded during operation. Therefore it is
designed in such a way that it is prepared to receive and deliver at
any time.
• The conveyor belt never stops running during the process. T
• hanks to its simple design and relatively low energy consumption in
continuous operation, this system is used in various areas of
intralogistics and is particularly efficient in large distribution centres.
• Mining, power plants and metal processing also benefit from this
conveyor technology.
• A continuous conveyor is intended for long-term use as it is a fixed
installation that cannot be easily moved to another position.

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 Continuous conveyors
• Furthermore, continuous conveyors are also
included, for example:
• The spiral conveyor
• The fork conveyor
• The L-conveyor
• The S- or also Z-conveyor

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 Discontinuous conveyors
• This area mainly includes forklifts, cranes and mobile transport systems,
which are only used when a transport order exists.
• This necessity means that these systems may come to a prolonged
standstill or be empty.
• In contrast to the continuous conveyor, the individual transport devices
are controlled manually and have a loading and unloading phase that can
be shorter or longer depending on the device and temporarily stops the
transport.
• Unsteady conveyors are often rail- or floor-bound. Still, they can also
move freely in some cases and are therefore more flexible than continuous
conveyors, as they can be used spontaneously for other purposes.
• However, this also makes them more costly due to the personnel
expenditure.

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 Sorter 
• In logistics, a sorter is a system which performs sortation
of products (goods, luggage, mail, etc.) according to their
destinations. 
• A common type of sorter is a conveyor-based system.
While they may be based on other conveyor systems,
usually sorters are unique types of conveyors. [
• Sortation is the process of identifying items on a conveyor
system and diverting them to specific destinations.
• Sorters are applied to different applications depending
upon the product and the requested rate.

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 Common elements of sorters
• A feeder system whose sole purpose to feed the
products into the sorter in proper orientation
and with proper spacing, so that the sorter
could operate correctly.
• Another common element are receptacles
which receive the products as they leave the
sorter towards a proper destination. Receptacles
may be as simple as chutes, or gravity
conveyors, or powered conveyors
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 Sorter types
• There is a number of typical sorter designs.
• Cross belt sorter
• Paddle sorter
• Pop-up transfer sorter
– Lineshaft pop-up wheel sorter
– Pop-up steerable roller sorter
• Pusher or puller sorter
• Parcel Singulator
• Line Sorter
• Shoe sorter
• Slide tray sorter
• Split tray sorter (bomb-bay sorter)
• Tilt tray sorter

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 Types of Loads in a Warehouse and their
storage
• A company’s economic activity will determine the type of
warehouse it needs.
• Similarly, although all warehouses share common
characteristics, the product to be stored will determine the
design and construction of both the warehouse and the installation
of storage systems.
• In addition, the nature of the product will condition the reception
of goods, their verification, transport between the
various warehouse areas, storage of goods, order preparation,
consolidation of loads, shipment of goods and stock management.
• However, not all goods are the same, so neither is their type of
storage nor the logistics processes that they involve. 

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 Definition of unit load
• Before explaining the existing types of load based on
different criteria, it is important to remember what a unit
load is. As already communicated in the "Types of pallets
and uses" post, the unit load is a homogeneous grouping
of a set of products arranged on a support or platform
that facilitates the handling and transfer of goods and
which therefore acts as a logistical unit as such.
• The purpose of the grouping of the load is to reduce the
number of movements to a minimum, in order to facilitate
its transport and storage.

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Types of load according to their recording

• General load
• These are goods that require individual packaging.
They can be handled in 2 different ways: firstly, there
are those loads that can be handled individually, and,
secondly, there is the general unitised load, i.e., loads
which for their handling during the logistics process
are unified on supports such as boxes, pallets or
containers.

In both cases, the total load is recorded in units.

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 Bulk load
• This is the load that is not recorded in units, but rather
by mass and volume criteria, since these are goods
prepared for transportation directly, where the means of
transport itself acts as a container, generally specialised
containers.

In other words, these goods travel loose, without any

packaging. For example, normally gases, liquids or similar
substances, which by their nature are difficult to package.
•  

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Types of load according to their volume

• Small loads
• These are loads that can be carried in one hand
and that are generally unified in a single
package. For example, cartons of juice or
packs of beer.

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 Medium loads
• They are slightly bigger than the above loads and may weigh up to 10
kg, but they can still be carried by hand.
• Both small and medium loads can be stored in Carton Flow Rack
systems and Longspan Shelving.
• Although there are differences between these two types of picking
solutions, both are optimal for these types of products which can be
handled manually due to their volume and weight.
• In Carton Flow Rack systems the priority is to facilitate high product
rotation (for example, the warehouses of food distribution chains such
as Eroski and Caprabo), while with Longspan Shelving, what is sought
is direct access to the goods (for example, the warehouse of textile
company Grup Sevica).

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 Large or pallet loads
• These are larger goods which require standardised packaging and
are grouped on a pallet for handling. This type of load cannot be
handled manually, but by mechanical means such as forklifts, etc.
• The pallet load can be stored with a wide variety of storage solutions.
Everything will depend on the function of the warehouse, the type of
product, the available area, etc.
• Some companies need immediate access to goods in their daily
intralogistics operations. In such cases, the warehouse will be equipped
with storage systems with direct access to the pallets.

However, other companies will prioritise the maximum optimisation of

the available space, both floor and height, so compact and high-
density storage systems will be the most appropriate solution.

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 Types of load according to their weight

• Light loads: these are loads that do not exceed

5 kg.
• Medium loads: these types of goods have a
minimum weight of 5 kg and maximum of 25
kg per unit load.
• Heavy loads: in this case, the weight ranges
between 25 kg and one ton.
• Very heavy loads: over one ton.

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Types of load according to the useful life of
the product
• Perishable load-Products with a limited useful life or
determined by an expiry date, such as fresh foods.
This requires completing the logistics process in a set
period of time and a storage that facilitates stock
rotation.
• Storage of perishable products-must be under
specific conditions until their shipment. 
• Non-perishable load-Products whose useful life
does not determine the way the load is transported,
received, stored and shipped.
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Types of load according to their resistance

• Resistant loads-These are those loads that can support

weight on top of them, i.e., they allow the stacking of the
product, either of the same type or supporting the load of
another type of product.
• Light loads-These loads can be stacked on top of each
other, but establishing limits.
• Fragile loads-They must be handled with special care
given that, due to their nature, they could be damaged or
spoiled. They must be stored individually on the racking
because they cannot be stacked.

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Types of load according to their dangerous
property
• Explosives
• Gases
• Flammable liquids
• Flammable solids
• Oxidising substances and organic peroxides
• Toxic and infectious substances
• Radioactive material
• Corrosive substances
• Miscellaneous dangerous substances and articles
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 Warehouse Organization
• Setting up a warehouse in an efficient and organized manner is beneficial for a
number of reasons.
• Not only does it assist in inventory control and time management, but it also
streamlines the entire process of doing business, from ordering and storing, to
pulling and shipping.

• But just what is the best way to organize a warehouse? We’ve got all the
information you need to set up your very own storage space, step-by-step:
1. Create a floor plan.
2. Select shelving and storage solutions.
3. Label racks, shelves, containers, and other warehouse organization assets.
4. Maximize space utilization.
5. Schedule regular maintenance.
6. Conduct periodic audits and reviews.

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 Create a Floor Plan
• The first step in organizing your warehouse is to create a floor plan. This
allows you to see where you want to store items, as well as any physical
space limitations of the building itself. Putting plan to paper before you put it
into practice helps you visualize the system in use, and be prepared for any
obstacles that may arise.
• It is important to make sure that your system is easy to understand and use
by others, so that employees can easily be trained and have no problems
putting it into practice. 
• When creating your floor plan, you’ll want to group like items together. This
makes it easier to find items.
• For example, a kitchen supply warehouse may want to create an area specific
for cookware and bakeware, another area for small appliances, one for knives
and cutlery, and yet another for dinnerware, among others.
Within this grouping of items, you may also want to apply the 80-20 rule.

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 Create a Floor Plan
• This is where you create a space within your
warehouse for the items that comprise the top 20% of
sales for 80% of your orders, so they are more easily
picked.
• It might take a bit of work upfront, but
this warehouse within a warehouse can drastically
increase picker productivity.
• It is important that this area is able to accommodate
high levels of traffic, since it is going to see the most
usage.
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Select Storage and Shelving Solutions
• Next, you’ll want to select shelving and storage solutions that will suit your needs.
• Focus on quality and quantity. You want to have enough storage space that is going to last.
• Pallet racking systems are the preferred choice as they are incredibly durable and safe, and
allow you to make the most use of your vertical space.
• Warehouse racks are the go-to choice for the foundation of warehouse organization, but
there are several different types of warehouse racking to choose from including:
1. Drive-in or drive-thru racking
2. Flow-through racking
3. Push back shelving
4. Cantilever racks
• The best choice, of course, depends on the nature of your operation, the size and volume of
products that flow through your facility, and other considerations. You’ll also want to
consider shipping containers, storage bins, and even coolers and freezers if you’re handling
temperature-sensitive inventory. Once your shelving is installed and organized in a way that
promotes safety and a good traffic flow, label all shelves and areas according to your plan.

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 Label Racks, Shelves, Containers, and
Other Warehouse Organization Assets
• Before placing anything in the warehouse, label everything: warehouse racks, shelves,
docks, everything. 
• Warehouse label solutions are designed specifically to meet the unique needs of the
warehouse, offering customized options ranging from long-range retro reflective labels
to cold storage labels, hanging warehouse signs, multi-level rack labels, and outdoor
dock and door signs that can withstand the elements.
• By choosing the right label solution, your warehouse will be easier to navigate, picking
and packing will be streamlined, and organizational efficiency will get a boost overall.

• Investing in a comprehensive warehouse label solution is an investment that pays off in

spades through better inventory control, improved productivity, warehouse optimization,
and more. 
• It is much faster and simpler to look for a barcode, SKU, or other number system to find
the right items than navigating through dozens of aisles to find the right section, the right
shelf, and the right product.

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 Maximize Space Utilization
• When stocking your warehouse, it is important to make the most
of all the space you have, and this includes optimizing your use of
vertical space as well. 
• Stacking items or using stacked shelving not only maximizes the
space, but also helps create a cleaner, more organized warehouse.

• Putting less frequently-purchased items higher up, in narrow

aisles, or in the harder-to-access areas of your warehouse can help
maximize both space and productivity, making the fastest-moving
items easiest to access and in close proximity to the loading dock.
• Product size and weight will also be a major determining factor in
how you choose to organize your warehouse.

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 Schedule Regular Maintenance
• Keep your warehouse organized by scheduling
frequent cleanings and by ensuring that aisles are
kept clear of items.
• You should be able to walk through any part of the
warehouse at almost any time without obstacle.
• Having policies and procedures in place for
incoming and shipping inventory will help to
ensure that your warehouse is kept organized, and
that inventory is accurately accounted for.

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Conduct Periodic Audits and Reviews
• Finally, you’ll also want to periodically review your inventory management and
warehouse organization systems for efficiency.
• This includes everything from the type of storage containers and shelving systems in use,
to the way items are grouped together. Verify that staff members have a functional flow
path, identify (and remove) any obstacles, and double check your blueprints to ensure
that you are maximizing your space.

• It’s also a good idea to do a run through of any potential problems that may occur with
your design, so that you are better able to deal with them if they arise.
• Most importantly, ensure that everything is up to code and safe for anyone who enters
the warehouse.

• There’s no sense continuing on with a process that is unsafe or isn’t working, and by
making regular check-ins a priority, you can easily see which aspects of your inventory
setup and processing can be improved upon. This helps boost both productivity, and your
bottom line.

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 Practices for Inventory Management for
Warehouses
• Supplying your products on time and with multiple channels can be quite
challenging.
• You receive constant pressure from various buyers and store locations.
• It is a challenge to keep up with inventory demands while monitoring the
inventory process and the needs of your workers and your customers or
buyers. 
• Without going into the disadvantages of inventory reduction, but focusing
on a businesses' ability to  fulfill all the requirements brought in by
customers.
• This is why your business needs to have a proper inventory management
practice, as things can quickly go haywire if you’re not careful managing
the inventory process. With that in mind, here you have some of the best
ideas that will make inventory management run smoothly. 

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 1. Try to use money-saving options like
wave picking and cross docking
• Whenever you plan on doing inventory management for
warehouses, you should focus on ROI and running a lean
operation. 
• Cross-docking is a very efficient system that will allow you
to significantly decrease both handling and storage time. 
• Cross-docking allows businesses to manage warehouse
inventory in a seamless manner, and it makes storage a lot easier
for that reason alone.
• If you have a complex shipping system, you can opt for wave
picking. If you adopt an advanced tracking method, you will find
both cross docking and wave picking to save money and time.

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2. Try to link inventory levels and accuracy

• Your inventory management system will deliver a large amount of

data in regards to the way products are moving within the
warehouse.
• If you have a complex system, you will find all this information to
be more than overwhelming at times.
• However, a simpler system is to analyze some specifics and find
the results that you want rather than swift through endless data.
• With this idea, you can save a lot of money as it will eliminate
additional shift orders and inventory.
• Although, it can be difficult to integrate if your company doesn’t
have inventory tracking, but it can deliver great results in the end.

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 3. Reorganize the floor plan
• Restructuring your floor plan might come with a bit
of skepticism. However, it’s a proven strategy
to modify the floor plan and make it more efficient.
• Since product supply and demand changes
continuously, you should make storage changes as
well.
• An optimal strategy is to try and modify the storage
plans to match your new business model. It’s better,
more efficient and it can bring in front an exquisite
value due to that.
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 4. Always try to remember personal
identification
• Aside from doing inventory tracking, you also need to
do employee monitoring.
• This is why it can be a useful strategy to add some new
security protocols that will make it easier for you to
track employees. 
• Employee monitoring optimal choice if you want to
increase safety protocols, it will indeed pay off
immensely for your business.
• Take your time, focus on results and the outcome can
be very well worth it in the end. 

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5. Track the bestsellers or the high sellers 
• An advantage of optimizing your inventory management for
warehouses is that you can track sales and orders for each product
or customer.
• This information can be extremely useful, most businesses can
improve on their smart insights into inventory data.  
• Use this information to track the high sellers. Position these in a
place where you can find and follow them a lot easier.
• This way the entire inventory management will be more efficient,
storage and shipping are performed faster, and you never have to
worry about this task ever again.
• If you want to make your big clients happy, this might be one of
the best methods you can use.

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 6. Use a quality inventory management
software
• Proper inventory management for warehouses can be done as long
as you have the right software.
• The old inventory management systems lag, and they don’t have
the ability to cater to the needs of current users.
• That alone can be very challenging, and in the end, it might not be
as economical as you expect.
• Lag can be a problem with most inventory management solutions,
but the latest tools on the market allow you to acquire real-time
updates on the products, which can be tagged with RFID for quick
and accurate inventories.
•  Decision efficiency is increased and confusion in high pace supply
chain environments is quickly reduced. 

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7. Use movable and fixed tracking options
• Using movable tracking options will allow you to see where you placed a
product, how you can access it and if it’s ready for shipment.
• Movable tracking enables you to see where items are located at all times, and it
makes the entire process faster, easier and more intuitive.
• On the other hand, fixed tracking is also an option for many businesses. 
• This way you can easily manage and assign destinations with precise efficiency.
• You can seamlessly combine fixed tracking with movable tracking if you want
to acquire optimal results.
• At the end of the day, fixed and movable tracking options can do wonders if you
use them correctly. 
• Often times there is a learning curve and initial investment in correct inventory
management processes, but these short term investments have large pay offs in
the future. 

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