Principles for the warehouse organization

From CEOpedia | Management online
Principles for the warehouse organization
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The warehouse (magazine) is an inherent part of the logistics process. Principles of magazine (warehouse) organization must consider the role it plays in the logistics process. They should lead to optimal coordination of all functions and achieving the best results with the least work effort.

Magazine is separate organizational and functional unit, the purpose of which is to store enterprise inventory. Usually it is large space equipped with appropriate technical means for storage of material goods, directed and supported by the he qualified staff.

To comply with all principles of warehouse organization managers should collect information concerning:

  • technical characteristics and the size of the lot of materials to be stored in stock (what, how much and in what form it will be stored),
  • delivery times of goods and shipments (so company could apply the principle of Just In Time),
  • points of delivery of materials and storage duration,
  • storage space available,
  • equipment and facilities for the storage and transportation available in the warehouse,
  • organizational structure of company,
  • employment structure,
  • IT systems which control the movement of goods through the warehouse,
  • method of recording and documentation of stock.

Using that information, managers can fulfil all duties during the organization of the warehouse. But that information is of a temporary nature, and for best results, managers must continuously monitor and control warehouse operations.

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