Warehousing management: running a small warehouse by its own numbers, week by week

Warehousing management is the running of the building day to day: what comes in and where it goes, what goes out and how fast, who is on the floor and what they produced, and whether the shelf agrees with the system. It is a job of routines rather than decisions, which is why it goes wrong quietly: nothing breaks, the figures just drift. The manager's defence is a small set of numbers produced the same way every week and read against last week. This page names those numbers and how each is worked, and the free warehouse management reports worksheet on this site produces them from a week's totals with no account.

Inbound: receipts and dock-to-stock

Inbound management is receipts checked against the advance notice and put away to a scanned location, measured as the hours from the truck door to the shelf. Dock hours over receipts is the dock-to-stock figure, three hours a receipt on the worked example, and a rising figure is the first sign the dock is short of hands or the putaway rule is being skipped.

Outbound: lines, orders and the labour behind them

Outbound management is picks and packs against a cut-off, measured as lines an hour and orders an hour against the labour hours paid. 5,400 lines and 1,800 orders in 480 hours is 11.25 and 3.75; 480 hours at a loaded $24 is $11,520 for the week and $6.40 an order. Read against the handling rate, that is the week's margin on a 3PL account or the week's cost on an in-house one.

Stock: cycle counts and accuracy

Stock management is the rolling count that keeps the system honest: locations counted, variances found, and clean over counted as the accuracy figure, 98% on the worked example. A warehouse that counts weekly has a measured accuracy; one that counts yearly has a guess and a surprise. Pickpathly Pro keeps each week's report so the four figures are read as trends rather than as this week's news.

Questions people ask about warehousing management

What does warehousing management involve?

Receiving and putaway, storage and slotting, picking, packing and shipping, returns, cycle counting, labour planning and the weekly reporting that shows whether each of those is working. The worksheets on this site work the reporting, the labour standard, the SOP pack and the system cost.

What are the key metrics in warehouse management?

For a small operation: lines an hour, orders an hour, labour cost per order, dock-to-stock hours and inventory accuracy, per client where the building serves several. The reports worksheet works all five from a week's totals.

Is warehousing management the same as inventory management?

No. Inventory management is what stock to hold and when to reorder; warehousing management is running the building that holds it. A 3PL does the second for clients who do the first themselves.

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