Warehousing and Inventory Management Essay Example | Topics and Well Written Essays - 3000 words - 1

Warehousing and Inventory Management - Essay Example Proper inventory management helps increase operational efficiency across businesses, improve customer service, and reduce inventory & distribution costs. The inventory management system and inventory control process provide information to manage the flow of materials efficiently, utilize people and equipment effectively, co-ordinate internal activities, and communicate with customers. Inventory management does not make decisions or manage operations; they provide information to managers who make more accurate and timely decisions to manage their operations. Inventory management must be designed to meet the dictates of the market place and support the company’s strategic plan. The inventory management approach should be updated according to the changes in market demand, new opportunities due to world wide marketing, global sourcing of materials, and new manufacturing technologies. According to Smith (1998 ), the primary finite resource of a warehouse is space. The planning of this key physical factor is very important for the operating efficiency of the warehouse. To meet the objectives of warehouse, proper planning of warehouse space and layout requirements is imperative. The most important functions of a warehouse occur on the receiving and shipping docks where the control of merchandise is transferred, whether products are brought into the warehouse or taken from it. An important prerequisite of efficient, safe and accurate receiving and shipping activities is enough space in which to perform them. Let us review the following critical factors for determining warehouse space and layout planning: i) Staging Area: - The majority of warehouses require a staging area directly behind the dock maneuvering aisle. The staging area for receiving acts as an immediate depository for materials unloaded from the carrier. This area serves as an accumulation point for the merchandise that