7 Important Functions Associated With Warehousing Companies

by Dolly K. Digital Marketing Executive

The warehouse management system is a complex but systematic process involving the storage and transfer of goods from their production points to their points of consumption.  While the process might seem very simple, today companies involved in warehousing do much more than just managing logistics. With e-commerce gaining popularity, the work of these warehousing services company has become more extensive and detailed. 

Some of the important functions that they perform are:

  • Order processing: This is one of the most important functions performed. After the order is placed on the e-commerce companies, they pass them on to their logistics partners. These warehousing partners then:
  1. Sort out the order based on such criteria as delivery date, payment mode, product description etc.,
  2. Invoice the products,
  3. Package the products and
  4. Transfer them further to mini-hubs or deliver them directly to the customer.

The importance of processing an order accurately lies in the fact that it helps ascertain future requirements involving stock fulfillment.

  • Inventory management: This is another top priority work done by the 3pl companies in India. While these companies must maintain an optimum level of inventory, it is equally important to ensure that the stocks present physically match the ones that are reflecting in their system. Thus stock-taking forms a critical part of inventory management. It is also their job to ensure that when stocks deplete below a level, it gets replenished. It would not be wrong to say that stock management helps bring about a balance between the demand and availability of the stock. 
  • Warehousing service: This pertains to the hiring or owning of a warehouse and ensuring the availability of ample storage space individually for all their partner companies. There are various factors which influence the decision to select a warehouse like:

  1. Location, 
  2. Space available,
  3. Design and layout,
  4. Ownership,
  5. Expansion possibilities etc.

  • Transportation: The availability of proper transportation facilities ensures timely delivery of products. Thus steadiness and reliability are two important criteria for either selecting a transportation partner or ensuring ownership of transportation facilities by the currently operating top warehousing companies in India. Mode of transportation depends on the type, physical dimensions and urgency of delivery of the product. The costs for the same need to be calculated accordingly and the easy availability of these modes need to be ensured.
  • Packaging and handling: This involves ensuring that the goods reach the customers in perfect condition so that returns and refunds can be reduced. This function requires a certain finesse to be maintained based on the type of goods being handled and packaged. 
  • Information transparency: The availability of updated technology and skilled people to handle the whole process makes it easy to ensure process transparency. Keeping the customer and the e-commerce order-taking company in the loop makes for good customer relations. 
  • Security: This refers to the safety of the goods stored inside the warehouse. It is the onus of the warehousing company to ensure the installation of CCTVs, placement of an adequate number of security guards at strategic positions, employee screening, maintaining biometrics etc. 

Another important point that needs to be discussed here is insurance. While this cannot be strictly considered a warehousing service, obtaining insurance for the warehouse as well as the products stored inside should be given top priority. They are responsible for the products and any damage to the same for reasons of theft, fire, climatic catastrophe etc., results in a huge loss for the concerned Supply Chain Companies in India. Thus even before the commencement of operations, these companies should look for the most appropriate insurance option and avail it.

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About Dolly K. Advanced   Digital Marketing Executive

33 connections, 4 recommendations, 183 honor points.
Joined APSense since, March 24th, 2020, From New Delhi, India.

Created on May 23rd 2020 08:29. Viewed 228 times.


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