10 Best Practices For Effective Warehouse Management

Editorial Team

Warehouse management means having oversight of operations happening in a warehouse. Warehouse management includes everything, including receiving, tracking, and storing inventory. It is also the training of staff, managing shipping, monitoring the movement of goods, and workload planning. A warehouse is generally a commercial building that is used to store goods, and hence warehousing includes the proper storage and handling of goods and cargo by using scientific methods in the warehouse. They are also made available easily and smoothly whenever there is a need for them. 

If you are in a position where your business is selling well, then you are going to need an additional space where you will store your products. Mostly it is a fulfillment center, a distribution center, or a warehouse. You can start it by purchasing land, leasing a facility, hiring staff, getting equipment, and getting customers that would buy from you- but nothing stops right here. Proper warehouse management will determine how successful your business gets to be.

 It won’t be of any difference if you have a modern state-of-the-art kind of warehouse if not when id managing it the right way. Poor-performing staff, low-profit margins, and high operating and logistic costs will be left for you if you do not do anything for the warehouse management. You will hence have poor ties with your customers as well. 

Some of the most complex processes of any business management are inbound and outbound logistics. Having many literal moving pieces in your business will require you to manage everything so that you get able to produce good outcomes and profits from your business properly. To learn how to do warehouse management, you will have to have a look at the following best practices adopted worldwide for the cause. 

1. Inventory Tracking

Inventory tracking means monitoring stock levels to have an idea of which SKUs you have in your warehouse and their exact locations where you have stored them. This also means knowing if the products are in transit from a manufacturer or are en route to the store. Inventory management allows you to know how much product is already prepared and is ready to be shipped if a customer has ordered an item. It also lets you know when you should order more products based on projected volume. As you keep growing, you will more probably be turning inventory over a lot quicker, will be expanding to new locations, and will increase your product lines. This will give you inventory accuracy and allows you to track what is a lot important. 

2. Picking And Packing

Picking and Packing are two of the most important and essential functions that are performed in a warehouse. A warehouse management system should have a generation of pick lists for every picker to retrieve products most excellently. This will include wave picking, zone picking, and well batch picking. For every new order, the picker will get a packing slip of the order and storage locations in the warehouse. The picker will then collect the ordered products from their allocated positions. Once the order gets picked, it is then handed off to the packer. The packer is responsible for securely placing the products in the box or a poly mailer, adding in any of the packing materials, and putting the shipping label over it. 

3. Receiving And Stowing

Any warehouse management operation should be able to receive inventory or freight from the trucks on the loading docks. This also involves then stowing them away in a storage location. After this, it will be brought to its short-term or long-term storage locations in the inventory. Here it will be scanned once again. Warehouse management software must provide clear and defined instructions for every user so that they know how to receive, unpack, retrieve, pick, pack, and also ship the products away. 

4. Shipping

Depending on the delivery options and shipping services you are offering to your customers, shipping carriers will then pick up orders from your warehouse. The shipping carriers include DHL, USPS, UPS, and FedEx, who will then ship packages to their next locations. Once the orders are shipped, your warehouse management system will be able to automatically send eCommerce tracking information having the code back to the store location. This will allow your customers to track their orders. 

5. Reporting

A warehouse management system must be able to provide out-of-the-box inventory and operational reposts in the whole warehouse. This might include accuracy in fulfilling orders, total orders that are done in an hour to measure the efficiency of staff, orders shipped on time, and a lot more. Some reports are related to people’s operations including inventory forecasting. This helps understand labor management and staffing needs. Having warehouse management tracking systems, you can quickly find out which employee or employees have completed safety training. Also, those that have licenses and certifications to operate certain tools and equipment and other regulatory requirements that you need to operate a safe warehouse.

6. Cloud-Based Management System

Extraordinary and one of the best business-changing choices you can make is to quit using Excel warehouse management and begin using cloud-based warehouse management. Unlike the locally installed applications, Cloud-based warehouse management programming permits you to pay for the features you need now and without any notice update when you have to later on. 

You’ll pay a single, predictable membership fee for a “package” that best suits your specific feature needs and team size. At that point, updating is only a couple of snaps away when your business development justifies an even more remarkable stage. 

On the head of peaceful upgrades, cloud software companies work n the background to ensure things keep on running easily. They will have a support team standing by you to help you if you need any answers to your questions or breaks fixed.  

7. Correctly Assign The Talents You Have In Your Company

Having talented people in your company is a plus, but not assigning them to their right locations can be a mixture of loss. One of the essential practices of warehouse management is to assign resources to the best location. You need to know which talent is the best for which allocation and where it can produce the best outcomes.

To be able to recognize best your optimal personal placements, you need to create talent grids, align them to the most developed profiles, and then position people accordingly. This will not only help to make your operations more efficient but will also make your people more successful which will elevate their morale. You don’t need only to get the right people on board, but you must be able to assign them the right roles to get the most out of their abilities. 

8. Use Robotics And Improve Efficiency

New technology should be used in your warehouse management that will result in the most positive outcomes. Using technology will be your smart way of getting things done, whereas utilizing the human workforce for the same cause will be hard work and not smart work. Technology can automate and fasten many of your business processes that will be time taking otherwise. The probability of error and flaws can also be removed once you start using technology and robotics in your warehouse management. 

The investment you will make in warehouse management robotics will be the most beneficial one that you can make. As orders of your business products increase, you will need more efficient personnel or software, in this case, to track products, proceed with order picking, and ship them faster to their locations. This will help scale and grow your business towards more success. 

9. Look For Investing In AI Solutions

AI has a huge potential to revolutionize supply chain processes. The ability to apply AI in enhancing and automating decision-making and reinventing business models will make any other technology trend redundant. Current AI solutions can find patterns and also predict future scenarios. Still, AI lacks decision-making abilities, but a new technological wave might give them this ability as well. Infusing AI in your warehouse management will help free up the human workforce to spend their expertise in higher-order use cases such as strategic network design and capacity planning. 

Technology can help you make your warehouse management even more productive and helpful in upscaling your business without any error or flaw incurred. AI has helped people in many other fields, and it will help you in your warehouse operations as well. 

10. Go See For Yourself

The business owner must never be away from their warehouse. Warehouse management will decide whether the business makes improvements or falls back into debt and zero profits. It would be best if you never were unaware of your warehouse processes and must keep visiting it to note everything is happening there personally. It would help if you never made a warehouse decision sitting beside your table in your work office. You should go visit the warehouse, look at the processes and operations happening there personally, and listen to your staff working there.

You need to help find solutions yourself and keep an eye on how your warehouse is operating. Being closely in touch with your warehouse management, even if the manager is someone else, will help you clarify the situation in need of an emergency. It would help if you keep your warehouse at the topmost priority and must keep visiting it often. People working in your warehouse are your people, and they are your assets, spend time with them, and help them build their skills and assets. 


As business owners, you should consistently be looking to the future and how you can improve things in tomorrow than you are doing them today. With the limited assets everybody must live with, it is critical to have a process to organize opportunities and afterward have the order to continue through to the end before new projects are begun. 

Keep in mind, there are a ton of “things” we could do, even fewer “things” we need to do, yet only one “thing” we should do today to keep the business heading the correct way. Having an excessive number of needs makes an absence of center and clarity in the association, which wastes assets and brings down the organizational spirit. Utilizing the above 10 warehouses’ best practices will assist you with recognizing the best opportunities inside your association, consistently improving, and remaining serious in the commercial place. 

In case you’re prepared to take the next step with your warehouse practices, it’s an ideal opportunity to actualize lean warehousing. You need to be able to understand the needs of your warehouse and should bring such processes that will accelerate the success of your business and help in bringing profits. Many people keep struggling with the upscaling of their business but forget that warehouse is one of the most important parts. They must first focus on making their warehouse management better and then think about what else is going wrong, which is hindering success. 

In case you’re encountering development and fulfilling orders in an eCommerce warehouse, you need real warehouse management and oversight set up. This requires experienced specialists to deal with the warehouse alongside the instruments and offices to help your volume today as well as extended development also. It would help if you got serious with your warehouse to start seeing positive outcomes in your way of business success. The above-mentioned best practices will help you set your business straight and achieve profits through your warehouse management. Hiring trained staff and recruiting people who are the best option to have in the warehouse is the best thing. Once you have the right team, then you will have to them a lot to the right places. This and many other positive upgrades will allow you to manage your business better and have an eye on the business processes from your office desk.