Most businesses have warehouses where they store their items. It helps in effective management and also helps them to track, manage and update inventory. Warehouses keep costs down when it comes to storing and shipping items for companies. 

This is where warehouse management in supply chain management becomes necessary. Simply put, warehouse management refers to the task of running day-to-day operations at a warehouse. Companies can integrate warehouse management software into their daily tasks to make things streamlined. 

3 Practices of Warehouse Management 

  1. Inventory Tracking and Reporting 

Inventory tracking is the process of overseeing the stock to see what is present in the warehouse and transit. This allows companies to see the volume of the product. Warehouse management in supply chain management makes it easy for them to schedule a given number of products for shipping.

They can also determine with these numbers if there is a need for more offers on certain products.  As your business expands, you’ll probably increase the number of locations and experience a faster turnover of stock.

In this process, keeping a close eye on inventory and generating reports becomes vitally important for the effective maintenance of a successful supply chain.

If you wish to elevate your inventory management to the next level, warehouse management in supply chain management can automate your inventory tracking, allowing you to precisely monitor stock levels and identify which products require replenishment.

  1. Tracking KPIs

Tracking Key Performance Indicators or KPIs helps you to identify the “problem areas”. You can see where the extra expenditure is happening. Knowing where you can make improvements allows you to enhance your overall business. Enter the warehouse management in supply chain management that allows you to keep track of your KPIs and even achieve them!

  1. Ensure Safety in Warehouses

This is a clear-cut factor that companies must implement in all warehouses. Giving top priority to safety in your warehouse will naturally enhance operational efficiency.

Learn more about good warehouse management in supply chain management in this blog- Good Warehousing Practices (GWP)

Secure warehouses feature equipment with extended lifespans and more efficient staff who are content to carry out their duties. Looking after your team members is imperative for ensuring smooth processes and staying on course.

Furthermore, providing them with comprehensive training on equipment usage will lead to fewer injuries, leading to lower insurance costs. Nearly all types of warehouse management systems follow such practices. They also use advanced technology to streamline functions. Let’s see how. 

Technology Integration

Warehouse Management Systems (WMS)

Warehouse management systems or WMS help organisations to maintain an efficient warehouse. They can determine the arrangement for storage and workflow that works best for them. 

It helps companies to track all forms of inventory so they can easily locate items and manage the supply chain. It supports usage of RFID tags and barcoding thus eliminating any need for periodic manual inventory counts. 

Improves Processes 

Warehouse management in supply chain management software improves its processes by  ensuring organised methods for receiving, picking and shipping of goods. It helps to reduce errors and improve employee satisfaction. 

The warehouse management system holds all the materials that made during manufacturing. They ensure that all materials efficiently move through the manufacturing process and in the required quantities. 

Such promising functions are in tune with today’s increased demand for same-day delivery and integrated logistics. Businesses can do so with the help of RFID tags and barcodes. So, let’s see their uses in detail. 

RFID and Barcode Scanning

Modern supply chain businesses utilise a combination of RFID tags, barcode labels, and long-range mobile scanners to enhance data collection for asset tracking. This integration of barcode and RFID methods with relational database software improves process speed and accuracy in locating, retrieving, and tracking items in and out of facilities. 

Leveraging mobile barcode and RFID solutions in warehouse management in supply chain management boosts turnover, optimises inventory, and enhances manufacturing, ordering, and shipping precision. These solutions streamline labour-intensive tasks, reducing labour hours and costs while eliminating manual errors. Productivity gains allow for reallocation of resources to more valuable activities, ultimately increasing operational efficiency.

Data Analytics for Decision-Making

Companies and organisations might collect and store data from all levels of the supply chain. They usually store it in a management system that the company manages centrally. Supply chain managers, thus, can see the entire picture to increase their efficiency and performance. 

In the past, supply chain managers had to rely on manual procedure or limited software tools. But with a powerful system for warehouse management in supply chain management managers can make sense of massive data sets and uncover hidden patterns and trends. 

This is reshaping the supply chain landscape and has far reaching implications for how businesses function.So, promising all such benefits, how does the system usually work? Let’s see some warehouse management system examples. 

Warehouse Management Processes

The warehouse management system application includes six core processes. Each process influences the efficiency of the next, so every step needs optimisation. Let’s see the process of warehouse management in supply chain management:

  1. Receiving: The process of accepting and recording incoming items, while ensuring they match the expected quantity, condition, and timing.
  2. Put-away: Relocating items from the receiving area to their designated storage positions.
  3. Storage: The secure and organised placement of inventory to facilitate efficient and accurate retrieval.
  4. Picking: Gathering the necessary items to fulfil customer orders.
  5. Packing: Preparing the selected items for shipment, including their proper placement in appropriate packaging along with an accurate packing slip.
  6. Shipping: Dispatching confirmed sales orders, ensuring they load onto the correct vehicle, accompanied by the necessary documentation, to guarantee timely delivery to customers.

However, just ensuring that the processes follow their natural course is not enough. You have to optimise all of them? What does “optimising” mean when it comes to warehouse management in supply chain management? 

Warehouse Optimisation 

“Optimising” your warehouse processes means fine-tuning them. With the help of experts you can ensure all steps and levels of the process run smoothly without any hiccups. For instance, when a company receives goods, they can use mobile barcodes or RFID tags to mark things. This helps when they need to find these items later. 

The importance of warehouse management system is already evident. To do so, companies need tools and features that make it all possible. One such indispensable tool is the Warehouse Management System. Let’s take a closer look at its key features and how it plays a pivotal role in streamlining warehouse operations.

3 Key Features of Warehouse Management System

  1. Seamless Integration with ERP Platforms

Integrating WMS with ERP enhances data flow, ensuring accurate real-time tracking and streamlined information management. This integration keeps all departments synchronised, preventing communication gaps and offering a clear view of the warehouse management in supply chain management. 

For instance, sales teams can better serve customers when familiar with the warehouse system. To avoid misunderstandings and keep everyone informed, WMS and ERP integration is essential. Additionally, companies can also benefit when they are able to access all system features even on their phones. 

  1. Mobile-Friendly Interface 

One of the best inventions of a tech-savvy world is that nowadays you can carry out an entire operation on your phone. Employees or management might need to travel or have flexible work hours. In such cases how can they access the warehouse or meeting and hold conferences to ensure smooth communications?

The answer is a management system that has a user-friendly interface so you can access it even from your mobile phone. You can easily set authorities, view purchase orders, raw materials, finished goods, and track inventory on the go.

By updating the data instantly on a web-enabled or a mobile-friendly WMS, the ERP system also receives automatic updates. This allows realt-ime collaboration between departments and makes managing daily tasks easier. 

  1. Resource Optimisation to Reduce Costs 

You might be thinking with so much technology and software, the management costs must pile up. However, the reality is much different.  The warehouse management in supply chain management softwares removes all roadblocks that tend to hinder your businesses’ growth and profitability. Let’s see how.

It helps you organise orders, keep an eye on shipping, make picking and packing easier, and get things ready to send out. A WMS gets rid of unnecessary work and lets warehouse workers handle things like shipping and buying electronically.

FAQs:Crucial Elements of Warehouse Management in Supply Chain Management 

What are the components of a warehouse?

A warehouse consists of docks and loading/unloading areas where you receive and ship materials. The receiving and staging area helps sort incoming items, while the storage area holds inventory. The picking area facilitates order preparation, and the shipping area handles outbound shipments.

Are warehouses the key to a strong supply chain?

Warehousing is a crucial phase in the supply chain. Warehouses connect suppliers to customers and maintain a smooth flow of goods and materials throughout the supply chain.

How warehousing plays a major role in the supply management process?

Having a warehouse enhances your supply chain. Suppliers can rely on your warehouse when your inventory is of high-quality. They can also find items available when they need them. Also, warehouses keep items safe reducing the risks of damage and theft. 

Why should a warehouse be a strategic location?

A strategically located warehouse enhances supply chain efficiency, reduces transportation costs, and ensures timely deliveries, ultimately improving customer satisfaction and overall business competitiveness.

What is effective warehouse management?

Effective warehouse management involves optimising space, streamlining processes, accurate inventory tracking, and employing technology to enhance productivity, reduce errors, and ensure efficient storage and distribution of goods.


Warehouse management in supply chain management simplifies and standardises everyday warehouse operations. With Qodenext you too can ensure that your business has operations that set and generate barcodes, to printing and recording goods receipt POs, warehouse transfers and more to boost your business productivity by reducing labour costs and time.