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Key Success Factors for Warehousing Services

Efficient warehouse operations greatly facilitate organizational and supply chain growth and expansion. Efficient warehouses are critical to customer satisfaction as they help ensure fast and accurate deliveries. To achieve maximum efficiency, warehouses should select the best warehousing service based on the type of system, operation process, and equipment. The smooth operation of warehouse logistics from inbound to outbound helps optimize the supply chain. Improving warehouse efficiency requires continuous focus and measurement to ensure that all system and process changes have the desired impact. At first, knowing which factors have the most significant effect on overall warehouse efficiency is difficult. This article discusses several critical factors for providing successful warehousing services.

warehouse operations
Image taken from SIPMM: https://publication.sipmm.edu.sg/crucial-factors-effective-warehouse-operations/

Receiving Operation

The first step in the warehouse process is the receipt of the goods. During the receiving process, all incoming goods are sent to the warehouse to ensure that the warehouse receives the correct goods and is in good condition. It is a crucial warehousing function that directly affects all subsequent warehousing processes. A good receiving process helps maintain an efficient warehouse. Warehouse staff checks all incoming goods’ quality, condition, and quantity to ensure they are as requested. If the goods are received inconsistently, warehouse staff should temporarily store them in a quarantine area and report them to the warehouse’s customer service department. Customer service then reports the deviation to the supplier or customer and waits for further action. Warehouse staff then update inventory levels and store each item in its assigned location.

Receiving Operation
Image taken from SIPMM: https://publication.sipmm.edu.sg/important-techniques-effective-warehouse-practices/

Put-away Operation

Initial product placement is part of the put-away process, directly impacting all subsequent warehouse operations, particularly the picking process. Travel time for packing and product selection may be extended if the put-away procedure could be better by increasing warehouse productivity and efficiency. Before storing, obtain correct information and analysis about the goods, such as their size, frequency of receipt, and existing storage capacity. There should be a schedule so that products should be put away as soon as they are received. It will assist in clearing the reception area and make processing orders easier and less complicated. Additionally, modern WMS can speed up receiving capabilities and expedite the put away procedure to ensure the cargo is positioned correctly on the first attempt. Using direct put away is an excellent idea to boost speed and efficiency. The process avoids a transition phase by moving the items immediately from the receiving region to their final location.

Picking and Packing Operations

Upon receiving an order, the WMS directs warehouse staff to collect the item from the designated location. This step is one of the first steps in the order fulfilment process and directly impacts customer satisfaction. Picking requires heavy physical labour. Before picking and packing, create a list of all product information and efficient picking routes to pick and pack products more efficiently. For larger quantity orders, it is recommended to carry out pick and pack in stacks or waves, whereas using the area pick-and-pack method when processing many orders with the same SKU. On the other hand, when processing many orders with the same SKU, a pick-and-pack method by area is used. This way, the goods are distributed to different locations, allowing the process to speed up. Efficient picking and packing processes result in more perfect orders and improved customer satisfaction.

Picking and Packing Operations
Image taken from https://www.pexels.com/photo/men-working-in-a-warehouse-4481259/

Shipping Operation

The final step in warehousing is shipping the order. Customer satisfaction is highly dependent on delivering the correct order to their customer in good condition. When receiving orders from customers, order information specifies the items and quantities; thus, ensuring sufficient inventory to fulfil the order is essential. Uses automation and technology to pick the correct items for an order, which helps speed up order processing. The quality control team should verify the order quantity and ensures that the product is free of defects before preparing it for shipment. After the order has been processed and inspected, place it on a pallet and then take it to the loading area to prepare for shipment.

Customer Service in Warehousing

The primary role of customer service in the warehouse is to support customers through calls and written communication. Their responsibilities often include answering questions, handling and resolving issues, processing refunds, tracking all transactions, and directing customers to other services when necessary. In addition, customer service should keep communication lines open with the team to ensure a seamless and effective workflow. Good customer service helps reinforce a company’s values ​​and brand as it interacts with consumers regularly. They have primary responsibility for upholding the company’s vision and guiding principles. Positive reviews and word of mouth for the business can result from excellent customer service and attract additional customers.

Return Management Process

The returns management process begins with the end customer wishing to return a product. The process is through crucial supply chain members and back to the retailer or retailer to the manufacturer. If the customer is dissatisfied after receiving the product or if the product is defective, the customer can request a return or refund from the supplier, retailer or manufacturer. The supply chain arranges transportation to collect products from customers. The warehouse or sorting facility initiates necessary inspections or quality checks and returns the product to inventory when it is ready for reuse or resale. Finally, the product is delivered to the customer when it is prepared for resale or sold to future customers. The result is higher profit margins and a more substantial brand reputation for social and environmental responsibility.

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Joey Chua Yee Xieng
Joey Chua Yee Xieng
Joey Chua Yee Xieng has substantive experience in logistics and warehousing, specifically in the provision of global freight forwarding services. She holds SIPMM Executive Certificate in Supply Chain Management, and she is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). She completed the Diploma in Logistics and Supply Management (DLSM) in December 2022 at SIPMM Institute.

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