Warehouse logistics is the process of planning, operating and managing the flow of goods within a warehouse to meet business objectives.
Warehouse logistics is a subset of supply chain logistics. Supply chain logistics looks at everything from extraction of raw materials through transportation, manufacturer of finished goods and ultimate delivery to customers. There can be several warehouses embedded in a single supply chain process.
In this blog, we will look at warehouse logistics from the standpoint of supporting your business needs. No logistics process exists for its own sake. We design and implement logistics systems including warehousing to achieve specific ends for our clients and customers. More on that below when we talk about the connection between warehousing and your business objectives.
Warehouse logistics has four main components:
An information management system plays a critical role in warehouse logistics. It determines where materials are stored, under what conditions, when they are retrieved, and where they are staged for assembly or issue.
There are two common terms for these systems:
A Warehouse Execution System (WES) focuses on operational tasks. It tracks incoming goods, decides where to store them, and tells staff where to retrieve items for fulfillment.
A Warehouse Management System (WMS) offers broader functionality. It includes everything a WES does and also manages inventory levels, reorder points, and disposal timelines.
Today, the differences between WES and WMS have largely faded. The two terms are often used interchangeably depending on the system’s scope.
The science of Operations Research is an integral skill at Maveneer—one we use to align warehouse logistics with broader business objectives. Figure 1 illustrates how typical warehouse measures map to business goals. While improvements in speed, accuracy, and inventory control are valuable on their own, they also serve a larger purpose. As the animation shows, these operational enhancements directly support business outcomes like customer satisfaction, efficiency, and growth.
The key is to understand the relationship between your warehouse operations and the overall business goal and prioritize your warehouse enhancements to best support the business objectives.
Now we know what we want to accomplish and why. The next question is how do you go about ensuring your warehouse is operating at peak efficiency?
"If you do not plan for success then you are planning for failure." This adage highlights that appropriate planning based on data and engineering math and science are critical for achieving your warehousing goals.
The physical layout of the warehouse is a key factor in smooth operations. There are five operational areas in a warehouse. Please see figure 2 (below).
There are four three processes involved in warehousing: receiving, storage, and issuing, and quality control. There have been hundreds of books written on each one of these topics. While they sound simple in theory, in practice there are many nuances and interactions between the process categories.
Quality warehouse logistics start with an efficient receiving process, which begins even before the materials arrive. This upstream, pre-receipt phase ensures that incoming items are properly labeled, accurately documented, safely packaged for warehouse staff, and inspected for any damage or quality issues upon arrival.
Intentional storing is critical in warehouse logistics. Material can be stored in a warehouse for varying periods of time. The location where your stock is stored has a substantial impact on the efficiency of your operations. Time is money in business, and space is money in a warehouse. You want to maximize your storage density, but you want to leave enough room to allow for storing and picking without too much congestion. To support faster fulfillment, high-turnover inventory should be positioned near the picking area for quicker access.
There are several subsets to the issuing process including picking, packing, and shipping. This is often the area where you can save the most time and money through effective design.
This is an umbrella process that works in parallel with the other operations in warehouse logistics. The industrial engineer says, "what is not inspected is neglected." Even in well-run, well-designed facilities it is important to do periodic and random checks on the subsystems. Periodic inventories of locations help verify location accuracy and material condition. Random checks of packages help promote order accuracy and identify systemic issues before they become business problems. Personnel should receive regular refresher training. When new equipment or automation is introduced, it's essential to ensure employees understand how to operate the technology and how it affects overall warehouse logistics operations.
Optimizing warehouse logistics requires more than just the right tools; it demands a clear connection between your operational decisions and business goals. From storage strategies to fulfillment processes, each step plays a critical role in overall performance.
If you're ready to identify opportunities for improvement in your warehouse logistics and operations, contact Maveneer for an Operational Assessment and take the next step toward a more efficient, scalable logistics strategy.