Warehouse management is a critical function in organizations where stocks are a significant current asset. Companies involved in manufacture or distribution of products in substantial expenditure towards materials. Such companies require effective control over procurement, storage and utilization of materials. While purchasing function is involved with the procurement of material supplies, warehouse management is concerned with the management and control of materials in stock.
Warehouse Management Functions
Warehouse management includes the following tasks:
Physical storage - It includes storing materials in appropriate places, recording their location and periodical checking of stocks.
Segregating sales and purchase order quantities - Quantities attached to a sales order, and those received against a purchase order must be appropriately labeled to identify the transaction number to which they are attached.
Stock transfers - Stocks are transferred from one warehouse to another or from one warehouse to the other.
Tagging products by serial number or batch number - The location of an product can be tagged by its serial number or batch number.
Recording stock adjustments - If the physical quantity of stocks differs from the stocks as per the books, stock adjustments may be required to resolve the excess or shortfall.