Diploma in Warehouse Management

Module 1: The Basic Principles of Warehouse Management

 Challenges
Unclear Inventory Location

Inefficient Utilisation of Space  and Poor Warehouse Layouts 

Poor warehouse layouts present another kind of challenge to management. Inefficient layouts
negatively impact productivity and often result in unnecessary work by your staff. When thinking
about your warehouse layout, prioritise easy access to common items.
Inaccurate Inventory Counts

 Lesson Summary

o Traditionally, the primary function of warehouses was the storage of goods. In modern supply
chains, other functions include information management and the movement of goods. 

o The role of a warehouse manager has grown as a result of changing consumer needs. Tasks
now extend to the supervision of sales order processing, controlling the movement of materials
and staff management.

o Becoming an effective warehouse manager involves establishing a trusting relationship with staff.
It is important to stay up to date on safety regulations and to avoid micro-management.

o Managing a warehouse presents a number of stressful challenges. These include unclear

inventory location and inefficient utilisation of space.

o There are a number of factors warehouse managers need to keep in mind when choosing the
location of their warehouse such as physical location, storage requirements and labour force
availability.

o The type of product, its size and its rate of sale impact the number of warehouses required.

o There are several important principles of warehouse design: Your primary objective, the type of
equipment you need and minimising the number of people that handle a product.

o Efficiency is the key focus of the principles of warehouse design.

 Module 2: Technology and Trends in Warehouse Management

 Learning Outcomes
 After successfully completing this course, you will be able to:

o Describe the types of technological equipment used in warehouses.

o Discuss the basic principles of logistics.

o Recall details about outsourcing.

o Analyse and investigate the use of robotics in warehouses.

o List tips on adopting new technologies.

 Warehouse Equipment and Modern

Technology
1. RF
RF means radio frequency. In the context of a warehouse, this means reading bar codes
wirelessly by devices that then send the information to a central database. If the item is incorrect,
or not required for that order, the device notifies the picker, who can return it to the shelf and
retrieve the correct item instead. While these systems are pricey, they increase accuracy by
enough to warrant their expense in most warehouses.

2. RFID
RFID, or radio frequency identification, refers to the wireless reading of data through a memory
chip, rather than a bar code. These chips are embedded in the side or attached to an item or
box. These chips contain information such as the date of manufacture, serial number, and spec
number. In many warehouses, these chips can be updated to reflect accurate tracking
information. Chips are resilient, capable of withstanding extreme temperatures and direct light.

3. VDP

VDP stands for voice-directed picking, and it describes a voice recognition/voice response
system. Users wear special devices, communicating with a central server about which items to
pick next. The device tells the user where to go, and the user tells the device the quantity and
quality of the particular item available.

4. PTL

Pick-to-light, or PTL, is the fastest picking method available, often reducing the number of
employees needed for this task by 50%. It focuses around one LCD display, which is located
next to a pick bin for a particular item. A main server gives information to each display about the
 order. When a picker is available, the display provides them with this data. Employees confirm
their picks using the same device, which gives an error message to those who make an error.

5. WMS

A warehouse management system, or WMS, is a powerful piece of software that tracks every
item in your warehouse, in real time. Managers often employ WMS in conjunction with one of the
other methods listed above. It can communicate with your other pieces of technology, telling
them which picker to assign to which task. Using this system with others increases warehouse
productivity, as well as giving you the data you need to develop or amend other warehouse
procedures. 

Automated Storage and Retrieval Systems

Automated storage and retrieval systems (AS/RS) are some of the most advanced pieces of
warehouse technology used in the modern supply chain. This involves the use of robotic
applications in conjunction with mechanised systems to physically move and store items.

These systems are often used by large companies with massive warehouses and focus on
storing and retrieving items in locations too dangerous for human access.

 Lesson Summary

o Warehouse managers are responsible for sourcing the technology required for their warehouse,
recommending its implementation, and ensuring employees are well trained.

o Common technologies include: Radio frequency, radio frequency identification, voice-directed

picking, pick-to-light and a warehouse management system.

o Automated storage and retrieval systems are some of the most advanced pieces of technology
used in large warehouses. AS/RS involves the use of robotic applications with mechanised
systems to physically move and store items.

o Warehouse logistics is about carefully controlling and directing the flow of goods in and out of the
warehouse. The basic principles behind logistics are to keep your warehouse running as
efficiently as possible.

o It is important for warehouse managers to embrace change and enforce compliance when it
comes to new technology. Helpful tips include offering paid training to staff and explaining how
the technology will solve an existing problem.

o The most common form of warehouse and logistics outsourcing is in the form of hiring a third
party logistics company. 3PLs provide companies with a variety of warehouse solutions such as
assembly, packing, storage and distribution.
o Robotic technology is rapidly becoming one of the most sought-after types of tech in warehouse
management. There are many benefits associated with warehouse robotics such as a reduction
in labour and operations costs, improved productivity and higher order accuracy.

Module 3: Warehouse Processes

 Learning Outcomes
 After successfully completing this course, you will be able to:


o Recall the work involved in receiving goods.

o Discuss the importance of warehouse organisation.

o List details about the storage of goods.

o Explain the processes and procedures behind the dispatching of goods.

o Evaluate the challenges posed by corporate returns policies.

 Receiving Goods
In theory, receiving goods is the simplest of all warehouse processes. It involves accepting
goods and directing them to storage. 

Module 10: Warehouse Cost Management

 Learning Outcomes
 After successfully completing this course, you will be able to:


o List the different categories of warehouse costs.

o Define labour expenses.

o Discuss the importance of slotting.

o Explain why it is valuable to utilise technology.

o Evaluate current methods of staff training.

 Categories of Warehouse Costs

 There are four basic categories of warehouse costs.

 Handling
Handling covers all expenses related to receiving and dispatching products. Labour costs
make up a big part of your handling expenses, as you need employees on hand to physically
handle your goods as they arrive at your warehouse, are set aside for storage, and are then
repackaged and dispatched.

Your handling costs may also include equipment and machinery used to make this process
easier for your staff. The time and money spent on maintenance of that equipment, and any fuel
or electricity required to make it run, are also covered in these expenses. Most warehouse
managers consider handling to be anything that is associated with the physical movement of
goods in or out of your warehouse.

 Storage
Storage expenses are the second category of warehouse costs. While your handling costs
are associated with goods in motion, storage costs cover goods at rest. Things like the
occupation of the warehouse itself, equipment used to hold goods, and providing any special
climate for the maintenance of the goods are covered in your storage expenses.

Costs associated with storage are typically paid on a monthly basis. While you are not
responsible for physically making those payments, you should know when they fall due. This
information can help you plan other purchases and major expenses around those dates.

Storage also takes up a large part of your budget but is generally not an area that you can cut.
The cost of your warehouse occupation, utilities, and other occupational expenses are usually
fixed and not negotiable. You should still be aware of these expenses. If you feel that your
company is not getting good value for the space they occupy, you may want to consider
relocation.

 Operations administration

Your operations administration expenses are those associated with the operation of your
warehouse itself. Things like warehouse supervision, information technology, supplies required to
keep the warehouse running, personal protective equipment, insurance, and taxes are all
considered operations administration expenses. Labour costs related to warehouse staff who do
not handle goods, such as custodial staff, are also covered in this part of your budget.

 General administrative expenses

The last category of warehouse costs is a general catch all, covering any expense not
covered in one of the categories above. The salaries for your upper management, non-
operating staff, and clerical workers are considered general administrative expenses.
Allocating other expenses to this category as opposed to one of the other three above is a
judgement call.
  The Importance of Slotting
 Slotting, or the process of figuring out where each item should go on your warehouse floor, is
one of the most overlooked aspects of warehouse cost management.

Obviously, slotting is crucial for safety and for organisation, but it also pays a huge role in helping
you cut costs. Optimising product location ensures your pickers have easy access to items they
need, the moment they need them.

Effective slotting reduces labour costs by ensuring that commonly picked items are in easily
accessible locations. Slotting also helps cut back on the number of injuries received. Investing in
this process results in a better-organised warehouse floor, which could help you save on storage
costs as well.

 Lesson Summary
o There are four basic categories of warehouse costs: Handling, storage, operations administration
and general administration expenses.

o Fixed expenses are much harder to cut than variable expenses. Variable costs tend to be more
flexible.

o Labour expenses are one of the largest costs in your warehouse. The ultimate goal is to increase
productivity without being over-staffed.

o It is important to establish realistic expectations. Historical data can be helpful when doing so.

o Consider conducting performance reviews and coaching sessions with all staff at least twice
yearly.

o Slotting, the process of figuring out where each item should go on your warehouse floor, is one of
the most overlooked aspects of warehouse cost management.

o Take advantage of both horizontal and vertical space on your warehouse floor. Develop a
numbering or labelling system. Use barcodes and constantly evolve your system.

o Make sure you are utilising technology in each area of your warehouse. It can be useful to
consider automation, voice-directed picking and communicating with suppliers.

o If your budget allows, it can be beneficial to offer continuing education opportunities and
technical training to staff.
 Certificate in Humanitarian Logistics and Supply Chain Management