Stock management encompasses all the operations necessary to regulate the flow of goods or products within a logistics process. Unlike inventory, which is more akin to a stock count, goods management has a higher degree of complexity, as it involves maintaining a certain amount of materials to ensure the operation of production and distribution processes.
Proper management of the flow of goods requires ensuring that there is always a minimum quantity of the different types of stock remaining, as well as avoiding waste or any slowdown in the operational phases that may affect the efficiency of the warehouse and logistics processes.
What is stock in logistics?
Stock or inventory is the set of materials and products that are stored, while logistics is concerned with supplying these products to buyers.
What is stock management?
Stock management refers to the way in which all material flows in the warehouse are organized. This term covers actions such as bin allocation, replenishment management, inventory traceability or goods movement systems such as FIFO, FEFO or LIFO, among others.
How important is stock in logistics?
The link between stock and logistics is very close. In fact, it is the correct management of the different types of stock that ensures that the logistics process runs smoothly. You have to take into account that stock storage is limited and that, in addition, it can sometimes involve perishable products.
For logistics to work properly, it is not enough to have large quantities of stock in storage, but the correct quantity must be identified according to the existing demand. In this way, products will neither be wasted nor lacking when demand increases.
How to manage stock in logistics
To manage the stock in a warehouse, it is essential to take into account various aspects that can affect the cost of keeping products in stock and a balance must be sought between the cost of storage and the need to be able to meet the existing demand, allowing the supply chain to continue to function.
How to manage the flow of goods
It is good to identify each step of the flow of goods in detail to get a complete picture and avoid any mishaps.
How the flow of goods works
First, we define the basis of the flow of goods, which is the same for all warehouses. It consists of five steps:
- Arrival of goods;
- Storage;
- Picking;
- Packing;
- Outgoing goods.
These are the macro-movements that take place in a warehouse, but it is not enough to identify them, we must make an in-depth analysis and know every detail of the flow of goods. This is the only way to optimize your processes.
Acceptance
When goods arrive, they need a dedicated space for unloading. The definition of vehicle flows must be clear and visually well defined, to allow the activity to run smoothly and safely.
Documentation control
Documentation must be checked to prove that the shipment is correct, from which supplier it arrives and if it is in the right place.
Check
Before starting warehousing activities, it is always best to make a check between the type of item and the quantities received/ordered.
Quality control
For this activity, it is necessary to set up an area where the appropriate quality controls can be performed. Non-conforming material is material that cannot be used and generates costs for the company. Therefore, it is advisable to immediately identify damaged or unsuitable products in order to return them to the supplier as soon as possible.
Unloading and storage
Many problems can arise at this stage if, for example, goods are stored in the wrong place or if the location is not recorded. A computer system that records everything so that nothing is lost is essential.
Internal transfers
Often, goods do not stay in the same place all the time, but can be moved before the picking phase, so this also needs to be tracked and handled with care.
Picking
Picking operations are one of the pillars of logistics. It is important to optimize picking as much as possible to offer a fast and competitive service.
Packing
Order preparation must be done correctly and in order to reduce delivery errors.
Shipping
Finally, it is time to load the vehicles for the shipment of goods: in this situation, it is essential to make deliveries on time. And if you want to know exactly where your order is, FR SERVICIOS LOGÍSTICOS offers you a tracking and tracing service.
A clear and organized flow of goods results in a tidy and optimized warehouse and efficient logistics processes. For these reasons, if you need help in the management of your warehouse, to improve the quality and speed of your services, do not hesitate to contact us.