A warehouse is a place where the inventories are stored for further processing. Warehouses are often seen to grow with the business.
Usually, the basement, garage or store room of a house is converted in the ware house of a business in its initial days. Then, as the business grows the warehouse also sees an expansion. Warehouses can be bought or rented based on the size of the business and the amount f money that the business is willing to invest for this purpose.
Improving operational efficiency (irrespective of any field) is dependent on a proper execution plan. Planning is integral to any business and e-commerce is not exceptional . Optimization of warehouse functionality and the best distribution management can be achieved using the following ways:
First of all on should have an idea of the trends in sale and have a stock of material accordingly. For doing so the 80-20 rule should be followed where 20% of the products account for 80% of sales turn over. Having a proper stock speeds up the fulfillment process as the product can be moved for packaging as soon as the order is received.
Secondly, packaging the inventories affect the shipping of freight majorly. If the packaging used is extremely big and heavy or is not proportionate to the inventory being shipped it does not remain operationally efficient. As, a large and heavy package would mean difficult to ship and also increase shipping cost (shipping cost is calculated based on the size and weight of the package).
Thirdly, automation in the process of managing freight also helps to manage it efficiently. By automation here we mean use of machineries like conveyor belts. This reduces the requirement for labour and also speeds up the process.
Fourthly, labeling of products is extremely necessary. Each and every product should have a code and a detail of its specifics attached to its code. This is where logistics come to play. The company should have a detailed record of all its products arranged and easily accessible when required. these might be manually written in the initial stages and later as the business grows the company may shift to using bar codes.
Lastly, the company should have software with the details of shipping that is, which product is being sent and to which address. It may also assign a unique identification code to each customer for the ease of recognizing the order. Maintaining this record also helps the company to initiate returns if required. The logistics help in keeping a track of the stocks and also the dates of delivery. This makes warehouse management easy.
Shipping in bulk makes affordable shipping. The customers may also be provided with tracking details where they can use their assigned codes to locate their products.