BUS104
Supply Chain Management
Warehousing Operations
Certification Track
Learning Block 1 – Warehousing and Its Function
James Jennings
Common Learning Block Description
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The warehouse is a place in which inventory is held for varying periods of time.
In a best case, the supply chain is constantly moving from original raw materials
through to the end customer.
However, there are many good reasons to interrupt the flow of goods in the supply
chain, to support quality, value, costs, and efficiency.
Warehouses can be used to add value to products and add value for customers. In this
learning block, we explore how warehousing operations add value to the supply chain.
Understanding the major roles and related activities of distribution operations is
important, and this learning block outlines these functions, namely
– Movement and storage
– Transfer of information
– Administration
What is Warehousing?
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Warehouses come in various forms, so various terms are often used interchangeably. The common
forms of warehousing are discussed below:
• Warehouse: A storage facility designed to store goods for varying periods of time.
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Distribution Center (DC):1 A facility or group of facilities that performs consolidation,
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storage, packaging, break down, and other functions associated with handling the movement of
materials (see Figure 1). A DCs purpose is to store goods for a short period of time. DCs are often in
proximity to major transport routes or terminals, and they can perform light manufacturing
activities, such as assembly and labeling.
The primary role of technology in the supply chain is to provide:
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visibility and transparency as :
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Timely updates:
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parts or services move throughout the supply chain.
about any issues involved in the placing or shipping of orders can lead to successful customer management.
Cross-Dock/Terminal: In cross-docking, the product is received and quickly distributed to the
outbound shipment staging area without being placed into storage.
What is Warehousing?
• A warehouse is, essentially, a building used for storing
goods.
• Warehouses are used by:
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manufacturers,
importers of goods,
exporters of goods,
wholesalers,
transportation firms,
customs, etc.
What is Warehousing?
• Warehouses come in different shapes and sizes, but they are usually
large, plain buildings in industrial areas of cities and towns.
• They can be:
– as small as a few hundred square feet
– and as large as a million square feet in size.
• They usually have:
– loading docks to load and unload goods from trucks.
• some warehouses are designed for loading and unloading goods
directly from
– railways,
– airports,
– or seaports.
What is Warehousing?
• Warehouses often use:
– handling equipment,
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including pallet jacks
or forklifts for moving goods,
which are usually placed on standard-sized pallets
and loaded into racks.
– Stored goods can include:
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raw materials,
packing materials,
spare parts,
components,
or finished goods associated with agriculture,
manufacturing,
or production.
What is Warehousing?
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We often define warehouses as a place for storing goods.
Given this broad definition, warehouses encompass a wide variety of facilities and
locations that include:
– storing finished goods in a production facility;
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storing raw materials,
industrial goods,
and spares for maintenance;
and storing finished goods as they are in transport.
Warehouses also include highly specialized storage facilities, such as:
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grain silos,
tobacco warehouses,
refrigerated facilities, etc.
 Every product, part, or material manufactured or grown is stored at least once in its
life cycle, from creating/manufacturing to use. Corporations now realize the benefits
of accurate and single-source information.
What is Warehousing?
 DCs perform necessary functions, such as creating a time utility
for raw materials, work in process, finished products, spare parts,
etc.
 Proper placement of facilities allows companies to meet
customers’ expectations of delivery time.
 The proximity of market-oriented DCs to customers allows firms
to serve customers with shorter lead times. DCs increase the time
utility of goods by broadening their time availability.
 This means that customers are able to obtain given products
when and where they demand them, within a given timeframe.
The distribution/warehousing function continues to be
increasingly important as companies and industries use customer
service to increase their competitive advantage.
What is Warehousing?
• Operating warehouses involves several processing activities,
including :
• Receiving goods
• Identifying goods
• Putting away goods to storage
• Holding goods and keeping goods in storage under proper protections
until needed
• Picking goods, selecting goods from storage, and bringing them to a
staging area
• Staging shipments and combining goods that contribute to a single order,
then checking for omissions or errors and updating order records
What is Warehousing?
• Dispatching shipments, packaging orders, preparing shipping documents,
and loading goods onto the correct outbound vehicle
• Operating an information system (A record must be maintained for each
item in stock showing the quantity on hand, quantity received, quantity
issued, and location in the warehouse.) This system can be very simple,
depending on amount of written information and human memory, or it
may be a sophisticated computer-based system. The records need to be
updated as items move from process to process throughout
warehouses.
 These are activities that take place in any warehouse. The
complexity of these operations depends on amount of Stock
Keeping Units (SKUs),2 quantities of each SKU, and amount of
orders received and filled.
The Role of the Distribution Center in
the Supply Chain
• DCs today have a different focus than they have in the
past. Traditionally, DCs/warehouses served the
strategic role of long-term storage for raw materials
and finished goods.
• Often, manufacturers produced inventory and sold
out of inventory stored in the warehouse. These
warehouses had to support sufficient inventory levels
to supply 60–90 days of customer orders.
The Role of the Distribution Center in
the Supply Chain
 However, warehouses have evolved over the years.
 For instance, warehouse operations include activities
beyond simple product storage and shipment; firms
rely on warehouses to:
 coordinate the flow of material and information among
multiple supply chain participants,
 and, when necessary, firms rely on warehouses to
modify the material.
The Role of the Distribution Center in
the Supply Chain
• The pressure on warehouses to be cost effective and responsive has
increased over the years.
• Advances in technology have also profoundly affected warehouses.
• In the past, warehouses were comprised of a relatively simple
structure with goods stored either on the floor or in racking and
were placed in storage and retrieved either manually or using
forklift trucks.
• This situation still applies to some warehouses, but as time has
progressed:
• they have grown in size,
• in complexity,
• and in using technology and automation
Types of Supply Chain Operational
Technologies
• Today, DCs have taken on the role of attaining logistics
goals of:
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shorter cycle times,
lower inventories, lower costs,
improved customer service levels,
and added value.
• Facilities are faster paced, and DC productivity is
emphasized. Attention is given to how long it takes to
fulfill orders and how fast products move through
facilities. In many firms, the product is in the DC for a few
days or even a few hours.
Types of Supply Chain Operational
Technologies
• To meet ever increasing customer demands for:
• shorter cycle times and lower prices,
• logistics managers are examining the DC and its
processes for productivity improvement
• and cost reduction.
• DCs are being redesigned and/or automated to
achieve order processing and cost goals, and they are
being relocated to achieve overall supply chain
customer service goals.
Value-Added Roles of Distribution
 DCs can be used to add value to products. DCs are the
point in the supply chain where stock is held for
varying periods of time. Holding goods in DCs stops or
interrupts the flow of goods, which adds cost. Some
firms believed that DC costs should be avoided if at all
possible; however, this view is changing due to the
realization that a DC can be used to add more value
than cost to products.
Value-Added Roles of Distribution
 DCs can be used as a place to add value to goods, including the
following:
Transportation consolidation
• Product mixing
• Break bulk
• Cross-docking
• Customer service
• Protection
• Smoothing
• Staging
• Kitting
Transportation Consolidation
• Transportation consolidation involves combining
smaller shipments to form a larger quantity to
realize lower transportation rates.
• Firms will sometimes need to transport less than
truckload (LTL) shipments of materials or products.
Shipping goods long distances at LTL rates is more
costly than shipping full truckloads (LTL requires
multiple, costly delivery stops to effectively utilize the
truck, but a full truckload requires only one stop).
Transportation Consolidation
 Moving LTL amounts relatively short distances to or from
DCs can allow firms to consolidate smaller shipments into
larger shipments (full truckloads) with significant
transportation savings. The following is a simple example
of consolidation:
• For the inbound logistics system, DCs would consolidate
different vendors in LTL shipments and ship a volume
shipment to the firms’ plants (see Figure 2).
• For outbound logistics, DCs would receive a consolidated
volume shipment from various plants and ship LTL shipments
to various nearby markets (see Figure 3).
Break Bulk
• The DC can be used to add value through break bulk
services.
• In break bulk, large shipments of manufacturers’ products
are broken down into smaller units, which are shipped to
multiple customers.
• For example, a firm can purchase hand cleaning fluids in
bulk containers (e.g., barrels) and repackage this fluid into
smaller plastic bottles.
• The firm then distributes these new bottles to various
automotive service centers around the United States (US) for
use by automotive mechanics.
Break Bulk
• Then, the Radio Frequency Terminal (RFT) communicates
to the central computer that the shipment has been
received.
• The container, or load, may need to be broken up in the
receiving area and assembled into a unit load, in which they
are required for placement into the storage system.
• For example, a full pallet load consisting of 20 packs/cartons
of a dozen hiking boots in each carton is received into the
receiving area, but the storage area is configured to hold 10
packs/cartons of boots.
Cross-Docking
• In a cross-docking operation, products from different
suppliers arrive to a relatively simple facility with little
storage space.
• Instead of being placed into storage for later picking,
products are moved from the receiving area directly
to the staging area and sorted to await being loading
into outgoing vehicles (or are placed directly into
outgoing vehicles) for particular customers or
delivery route trucks.
Customer Service
• A fourth DC value-adding role is to provide customer
service.
• Customer service provides competitive advantage to
companies. Having goods available in DCs when
customers place orders (particularly if DCs are
reasonably close to customers):
• will usually lead to customer satisfaction,
• enhance future sales,
• and contribute to customer retention.
Contingencies
• A fifth DC function is protection against contingencies:
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such as transportation delays,
vendor stock-outs,
strikes,
inclement weather, etc.
• This particular function is important for physical supply DCs
because delays in the delivery of raw materials can delay
production.
• An example of the contingency benefit in action is when an
automotive manufacturer is able to continue operations after a
tsunami strikes supplier operations by utilizing stockpiles of
materials kept in a warehouse near the plant.
Smoothing
• Smoothing out production and distribution operations is a
sixth DC function.
• Seasonal demand and the need for production runs long
enough to ensure that reasonable cost and quality are
examples of smoothing—in this case, preventing
operations under overtime conditions. In the case of
seasonal demand (e.g., bottled water in the summer),
manufacturers must begin producing product well in
advance of the season and must store the product in
warehouses until it is needed
Staging
 In some industries, a wide variety of products,
materials, and equipment are required to be
gathered over a period of time to meet customers’
requirements; this is sometimes referred to as
“project logistics.” Fitting out furniture in a new office
building is an example of the need for staging
because the furniture company gathers all the
needed product prior to delivery and installation.
Kitting
 Finally, kitting is a value-added process performed in
DCs where individual items are packaged together to
create a special single item which will be
used/purchased as a unit by customers. For example,
a toothbrush, razor, toothpaste, comb, and nail
clippers can be assembled and packaged in a small
travel bag for use by airlines for their customers.
Unit 3 - Basic Distribution Center
Decisions
 The following shows the main decisions or choices
that companies must face with regard to DCs:
• Private versus public DCs
• Centralized versus decentralized DCs
• DC size and location
• Facility layout
• Items stocked
• Safety/security
Private Versus Public Distribution
Center
 Companies can decide to use public warehouses or private
warehouses to meet their distribution needs.
 The first decision is that concerning ownership. In arranging for DC
space, companies have two basic alternatives:
 private ownership of facilities
 or use of public DCs. Choosing between the two or combining them is a
major DC decision.
 Many firms combine public and private warehousing because:
 of varying regional market conditions,
 customer volumes and requirements,
 and other factors (e.g., seasonality).
Private Distribution Centers
 Private DCs are operated by the owner of the goods stored there. Several factors lend
themselves to companies using private DCs:
• Stable demand:
Many products have seasonal sales;
however, many larger firms have multiple product lines, and this helps to stabilize the DC
throughput to build the volume necessary for an economical, private DC.
For example, when coffee sales drop off in the summer for companies like General Foods
International®, they sell more tea for iced-tea drinkers.
• Dense market area:
Another factor conducive to private DCs is a dense market area relatively close to the
warehouse or numerous vendors relatively close to physical supply DCs.
• Control:
Private DCs might also benefit a firm for control purposes. This includes physical control
(e.g., security or refrigeration) and service control (e.g., customers and/or plants). Certain
materials and finished goods are highly susceptible to theft or to loss of value from damage
or spoilage, so it may be preferable for firms to retain control through private DCs.
Public Distribution Centers
 Public DCs are operated by firms engaged in storing goods for
profit. Public DCs do not normally own the goods that it stores.
Several factors lend themselves to companies using public DCs:
• Financial investment:
The first and most significant reason for public warehousing is financial; it
requires no or limited capital investment by the company.
• Flexibility:
Firms can rent space for shorter or longer periods of time as required,
enabling the firm to react quickly to movements in demand or changes in
the quality of transportation services.
Exploring new markets also requires location flexibility; public DCs enable
firms to immediately launch in, expand in, or pull out of new, untried
markets without lingering distribution costs.
Public Distribution Centers
 Public DCs are run by third-party operators (or providers)
who may provide a wider variety of services for
manufacturers and suppliers who decide to outsource all
or part of their DC operations.
 Third-party operators can provide a full range of
distribution management services for customers and
integrate these services within a total logistics system.
 Recently, outsourcing has become more widely available
for companies.
 Third-party operators currently represent a multibillion
dollar, rapidly growing industry.
Centralized Versus Decentralized
Distribution Centers
 Another important DC decision is whether firms will use a
centralized or decentralized approach in providing DC
facilities.
 This decision impacts how many DCs the organization
should provide.
 In some instances, the market will be relatively simple
because:
 of the firm’s size;
 for example, small- and medium-sized firms with a regional
market area will often need only one or a few DCs.
 Usually, only larger firms with national or international market
areas need to examine this question in detail.
Centralized Versus Decentralized
Distribution Centers
 As with private DC versus public DC decisions, firms use a tradeoff
framework in analyzing the need for DCs in various areas. Particular
firms’ supply and demand conditions will make one alternative more
attractive than others. For example, a firm
manufacturing/distributing a highly competitive product on a
national basis may need to use decentralized DCs to give rapid
service in its chosen market area.
 Firms have to closely coordinate the decision about the number of
warehouses with their decisions about transportation alternatives.
For example, air freight makes possible rapid national market
coverage from one or two strategically positioned DCs. Although
the cost of air freight is relatively high, a firm can nevertheless trade
it off against savings in DC and inventory costs.
Warehouse Size and Location
 Numerous factors affect the design of logistics networks and the
location of specific facilities within the context of the network,
including availability of transportation, proximity to markets and
customers, supplier networks, and land costs and utilities.
 DC size and location are closely related to the decisions
regarding DCs and centralized/decentralized approaches. If
companies are using public warehousing, the question is less
important. As with other logistic decisions, firms must examine
location from a tradeoff perspective. By analyzing DCs’ intended
function, firms can determine general locations. This could
include locating DCs near markets, mixing raw
Warehouse Size and Location
 materials close to production, or creating a combination of
other factors. Choosing an exact location must rely on
factors (e.g., transportation, the market, and local
characteristics).
 All factors need to be carefully considered because, in
some cases, factors affecting this decision are so complex,
especially where a large national or international
distribution network exists.
 Sometimes, specialized software is often used to help
management decide on how many DCs there should be,
where they should be located, and how big they should be.
Facility Layout Facility Layout
 DC layouts have a critical bearing on overall efficiency and productivity. The objectives
of DC design and layout include optimum use of space, smooth flow, labor
productivity, and adequate protection of goods. DCs may range in size from a few
thousand square feet to more than two million square feet.
 DC managers need to decide aisle space, shelving, racking, handling equipment, and all
other physical dimensions of the interior of DCs. Another important decision is how to
arrange stock so there is an efficient use of space and an efficient flow of goods. Main
considerations in layout include
• Cubic utilization and capacity
• Product protection
• Level of mechanization
• Safety
• Product physical characteristics
• Productivity/performance
• Shifts and staffing levels
Facility Layout Facility Layout
 Items Stocked
 Other warehousing decisions involve what items firms should stock and how much
stock should be assigned to various DCs. Firms with a number of locations must
decide if all locations will carry the whole product line, if each DC will specialize to
some extent, or if DCs will combine specialization and general stocking. Also
inherent in the decision making process will be whether the firm wishes to stock
certain items or obtain these as and when required from suppliers and crossdock/ship directly to customers.
 Employee Safety
 Employee risks will also influence efficiency and improvement decisions, especially
risks due to the monotonous and dangerous work in many traditional DCs and the
handling of hazardous materials and sanitation. Employee safety is a major issue
that firms must face, and it influences layout of facilities and quantity and location
of safety-related equipment (e.g., sprinklers, fire hoses, etc.).
The Major Functions of Distribution
Operations
 An overview of distribution operations activities, as they relate to
the functional elements of this definition, will be discussed in this
unit of the learning block under the following topics:
• Movement and storage functions
• Information transfer function
 The Movement and Storage Functions
 Movement is a vital aspect of distribution. This aspect can be
divided into four, somewhat distinct, operations:
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(2)
(3)
unloading and receiving goods into DCs from the transport network;
(2) transferring goods into particular locations in DCs (e.g., storage and
cross-docking); (3) selecting particular combinations of goods for
customer orders or raw materials for production; and
(4) staging/consolidating and loading goods for shipping to the
customer or to the production line. All four involve movement of goods
The Major Functions of Distribution
Operations
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Movement
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The movement function characterizes a distribution and cross-docking warehouse for finished goods.
Goods brought to distribution and cross-docking warehouses move through the warehouse rapidly,
resulting in rapid inventory turnover. The reason for quick movement is the cost of holding finished
goods inventory for long periods of time. Finished goods have high value, need more sophisticated
storage facilities, and have greater risks for damage, loss, and obsolescence, all contributing to higher
inventory costs. Moving goods quickly and efficiently through DCs is, therefore, of great importance.
Storage
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In cross-docking operations, the storage, or holding, function is temporary and short term. In fact,
some items will turn (move through DCs) in less than 24–48 hours. In addition, many merchandisers
and small retailers use a quick response, or minimal storage inventory strategy, which uses point of sale
information to indicate to DCs when inventories need to be replenished. In this system, when a certain
amount of inventory is used, or sold, at the customer site, an electronic message is sent to DCs and
replenishes the inventory on a just-in-time basis.
In some cases, DCs may store goods for longer periods of time for final processing. For example, a wine
maker may have to store wine, which may be considered finished after initial processing, for aging
purposes. However, accurately forecasting inventory requirements may prove difficult for firms facing
erratic demand for their goods. In these cases, firms may need to store relatively large inventories to
preclude stock-outs (e.g., DCs carrying fashion goods).
The Major Functions of Distribution
Operations
 The Information Transfer Function
 Effective information management and flow of information can help to
ensure that firms meet the service requirements of its customers. Two
main types of logistics information flows are incorporating coordination
and operational activities. Scheduling and requirement planning make up
the coordination flow across the various departments in companies.
 Operational information flow relates to initiating and tracking receipts,
assigning inventory, and shipping replenishment orders and/or customer
orders (replenishment orders re-supply DCs from manufacturers, and
customer orders relate to moving goods from distribution facilities to
customer locations.). In either case, order fulfillment requires a series of
activities, such as order placement, order processing, order
The Major Functions of Distribution
Operations
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The Information Transfer Function
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preparation, and order shipment—all of which require effective information transfer (more detail is given below in
“Information Flow in Practice”).
Types of logistics information technologies used to facilitate information flow include bar codes, radio frequency
technology/scanners, and electronic data interchange (EDI). Each of these is briefly described below:
• Bar codes: Bar coding represents the most commonly used automatic-identification technology in
logistics/distribution. A bar code is a series of parallel black and white bars, both of varying widths and whose
sequences represent letters or numbers. This sequence is a code that scanners can translate into important
information, such as shipment origins, product types, place of manufacturing, and products’ prices. Bar code systems
are simple to use, accurate, quick, and they can store large amounts of information (see Appendix A for more
information).
• Radio frequency technology/scanners: There have been recent increases in the use of devices and systems for
remote access and logistics communications. Using radio frequency, for example, allows users to relay information via
hand held or fixed terminals.
• EDI: EDI is the company to company, computer to computer exchange of information in a structured, machine
process able format. The purpose of EDI is to improve the speed and accuracy of information transfer by linking
computer applications between companies.
Optical scanners are often used in DCs together with bar coding. Scanners fall into two main categories: automatic and hand
held. Automatic scanners are fixed into position and scan packages as they go by on a conveyor belt; in contrast, workers
can carry hand-held scanners or wands throughout DCs. To read bar codes, optical scanners emit light beams and translate
reflections bouncing off the black and white bars into electrical signals
The Major Functions of Distribution
Operations
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The Information Transfer Function
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Optical scanners are often used in DCs together with bar coding. Scanners fall into two main categories:
automatic and hand held. Automatic scanners are fixed into position and scan packages as they go by
on a conveyor belt; in contrast, workers can carry hand-held scanners or wands throughout DCs. To
read bar codes, optical scanners emit light beams and translate reflections bouncing off the black and
white bars into electrical signals.
For example, a local supermarket where clerks scan bar codes on individual packages at the cash
register. Using the scanner and bar codes also contributes to more effective inventory control. The
scanners, bar codes, cash registers, and backup computer systems enable the supermarket to closely
monitor sales and, therefore, inventory levels for stock counts and inventory replenishment purposes.
Scanning/bar coding at a DC improves data collection accuracy, reduces goods receiving operations
time and data collection labor, and helps to integrate data collection with other areas.
Additionally, the use of EDI helps to improve the timely availability of logistics information, enhance the
breadth and accuracy of data, and make the process of data transfer less labor intensive and error
prone. An EDI network generates pre-defined documents, such as purchase orders, shipping orders,
and invoices. Much of the data used in the EDI network is collected via bar codes.
At DCs, information received through the EDI network can be used to drive many distribution functions.
The timely and accurate receipt and transmission of data allows for efficiently scheduling and handling
inbound shipments, routing goods through DCs, and measuring throughput levels (and costs) using
automated systems
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Warehouse Operations
Responsibilities and Job Types
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The order management system represents the principal means by which buyers and sellers communicate information
relating to customer orders for goods. The order management system is also one of the most important components
of firms’ overall management information systems.
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The overall area of order placement, order processing, order preparation, and shipping has benefited from the enhanced
computer information system technologies available today. Each component of the order cycle are described below:
• Order placement: Order placement time can vary from days by mail to minutes by phone or fax. Using EDI or the internet,
order placement can take place instantaneously from customers directly to suppliers. Another example of using technology to
expedite order placement would be a firm providing hand-held data entry units for in-store use by company representatives.
These hand-held units are used to transmit order requirements directly to suppliers.
• Order processing: The order processing function involves checking customer credit, transferring information to sales
records, sending the order to the inventory area, and preparing shipping documents. Many of these functions can, and in some
firms do, occur simultaneously via electronic data processing equipment. Improvements in computer and information systems
technologies have led to considerable reductions in the times necessary to accomplish these activities.
• Order preparation: Depending on the commodity to be handled and other factors, the order preparation process may be
very simple and performed manually or may be complex and highly automated (see Learning Block 5 for more information). It
should be noted, however, that less-automated systems rely on manual labor, to a larger extent, and may have a higher
incidence of shipping errors.
• Order shipment: Order shipment includes placing the order on a truck for movement to the time it is received and unloaded
at the buyer’s destination. Measuring and controlling order shipment can be accomplished through receivers of product being
given advance shipment notification (ASN) from supplier firms. An ASN is a notification of pending deliveries, similar to a
packing list; it is usually sent in an electronic format and is a common EDI document. Shippers may also require proof of
delivery documentation from carriers to pinpoint the exact time and location of delivery. Many firms have utilized information
technology to provide services such as these. In addition, many carriers have made it easy for customers to track shipments
when needed and provide these customers with summary reports of shipment times, service levels, etc.
Warehouse Operations
Responsibilities and Job Types
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Receiving Responsibilities and Job Types
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What Does a Receiving Employee Do?
The following are the main types of jobs carried out in receiving operations:
• Determine method of goods for inward shipment and prepare bills, invoices, and other shipping documents.
• Assemble containers and crates, pack goods to be shipped, and prepare identifying information and shipping instructions.
• Oversee loading and unloading of goods from trucks.
• Inspect and verify incoming goods against invoices or other documents, record shortages, and reject damaged goods.
• Unpack and route goods to appropriate storage areas.
• Maintain internal record-keeping systems.
• Operate forklift, hand truck, or other equipment to load, unload, transport, and store goods.
• Know safe storage and handling procedures for various chemicals and materials.
• Know proper shipping procedures for transportation of dangerous goods.
The key types of direct jobs and duties in warehouse receiving include the following:
• Unloader: unloads trucks and breaks down pallets as needed, using various pieces of power equipment
• Receiver: inventories and tags unloaded pallets using a mobile cart computer unit and printer
• Lumper: helps unload shipments
• Receiving clerk: receives incoming shipments at a warehouse. Receiving clerks verify that the correct types and amounts of items were shipped
and inspect or carry out additional inspection on the goods to ensure their quality. They are also responsible for keeping careful records and
contacting shippers directly if a problem or discrepancy is found.
The key types of indirect jobs and duties in warehouse receiving include the following:
• Supervision: supervises floor processes, indirect labor supervision
• Facilities and housekeeping: maintains the buildings
• Inventory management: tracks and places product
• Quality assurance: inspects and accepts incoming and outbound product
Organization Structure and Reporting Relationships
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Receiving workers typically report to supervisors who may also have responsibilities for shipping. Supervisors typically report to
warehouse managers who will, in turn, report to a distribution director, depending on the size and nature of the operation.
Warehouse Operations
Responsibilities and Job Types
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Receiving Responsibilities and Job Types
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What Does a Receiving Employee Do?
The following are the main types of jobs carried out in receiving operations:
• Determine method of goods for inward shipment and prepare bills, invoices, and other shipping documents.
• Assemble containers and crates, pack goods to be shipped, and prepare identifying information and shipping instructions.
• Oversee loading and unloading of goods from trucks.
• Inspect and verify incoming goods against invoices or other documents, record shortages, and reject damaged goods.
• Unpack and route goods to appropriate storage areas.
• Maintain internal record-keeping systems.
• Operate forklift, hand truck, or other equipment to load, unload, transport, and store goods.
• Know safe storage and handling procedures for various chemicals and materials.
• Know proper shipping procedures for transportation of dangerous goods.
The key types of direct jobs and duties in warehouse receiving include the following:
• Unloader: unloads trucks and breaks down pallets as needed, using various pieces of power equipment
• Receiver: inventories and tags unloaded pallets using a mobile cart computer unit and printer
• Lumper: helps unload shipments
• Receiving clerk: receives incoming shipments at a warehouse. Receiving clerks verify that the correct types and amounts of items were shipped
and inspect or carry out additional inspection on the goods to ensure their quality. They are also responsible for keeping careful records and
contacting shippers directly if a problem or discrepancy is found.
The key types of indirect jobs and duties in warehouse receiving include the following:
• Supervision: supervises floor processes, indirect labor supervision
• Facilities and housekeeping: maintains the buildings
• Inventory management: tracks and places product
• Quality assurance: inspects and accepts incoming and outbound product
Organization Structure and Reporting Relationships

Receiving workers typically report to supervisors who may also have responsibilities for shipping. Supervisors typically report to
warehouse managers who will, in turn, report to a distribution director, depending on the size and nature of the operation.
Warehouse Operations
Responsibilities and Job Types

Restocking and Storage Responsibilities and Job Types

What Does a Restocking and Storage Employee Do?
 The following are the main types of jobs carried out in restocking and storage operations:
• Select, organize, and process merchandise
• Replenish items within and/or find items from bulk storage
• Sort items and prepare them for shipment or delivery
• Take stock, including cycle stock counting
• Maintain internal record-keeping systems
• Operate forklift, hand truck, or other handling equipment to transport and store goods
• Know and carry out safe storage and handling procedures for various chemicals and materials
• Keep warehouse merchandise organized
• Understand computer databases and electronic ordering
• Organize stored items so that they can be easily found and retrieved
• Transfer product from a storage (reserve) position to a given pick position

The key types of direct jobs and duties in warehouse restocking and storage include the following:
• Hauler: transports received pallets with equipment from the receiving dock to storage racks
• Putaway driver: puts product into racks with forklift
• Stock mover: moves stock from one location to another, including from reserve storage locations to picking locations
• Warehouse clerk: usually responsible for maintaining accurate inventory logs, supply lists, and invoice records; also must
display proficiency in both writing and computer skills. Clerks may store paperwork (e.g., invoices) according to the companies’
filing systems. Clerks are more likely to maintain and store other information, like inventory, via computer systems.
Warehouse Operations
Responsibilities and Job Types
 The key types of indirect jobs and duties in warehouse restocking and
storage include the following:
• Supervision: supervises floor processes, indirect labor supervision
• Facilities and housekeeping: maintains the buildings
• Inventory management: tracks and places product
• Quality assurance: inspects stored product
 Organization Structure and Reporting Relationships
 Restocking and storage workers typically report to supervisors or leading
hands who may also have responsibilities for restocking and storage
operations. Supervisors or leading hands typically report to warehouse
managers who will, in turn, report to a distribution director, depending on
the size and nature of the operation.
Warehouse Operations
Responsibilities and Job Types

Restocking and Storage Responsibilities and Job Types

What Does a Restocking and Storage Employee Do?
 The following are the main types of jobs carried out in restocking and storage operations:
• Select, organize, and process merchandise
• Replenish items within and/or find items from bulk storage
• Sort items and prepare them for shipment or delivery
• Take stock, including cycle stock counting
• Maintain internal record-keeping systems
• Operate forklift, hand truck, or other handling equipment to transport and store goods
• Know and carry out safe storage and handling procedures for various chemicals and materials
• Keep warehouse merchandise organized
• Understand computer databases and electronic ordering
• Organize stored items so that they can be easily found and retrieved
• Transfer product from a storage (reserve) position to a given pick position

The key types of direct jobs and duties in warehouse restocking and storage include the following:
• Hauler: transports received pallets with equipment from the receiving dock to storage racks
• Putaway driver: puts product into racks with forklift
• Stock mover: moves stock from one location to another, including from reserve storage locations to picking locations
• Warehouse clerk: usually responsible for maintaining accurate inventory logs, supply lists, and invoice records; also must
display proficiency in both writing and computer skills. Clerks may store paperwork (e.g., invoices) according to the companies’
filing systems. Clerks are more likely to maintain and store other information, like inventory, via computer systems.
Warehouse Operations
Responsibilities and Job Types
 The key types of indirect jobs and duties in warehouse restocking and
storage include the following:
• Supervision: supervises floor processes, indirect labor supervision
• Facilities and housekeeping: maintains the buildings
• Inventory management: tracks and places product
• Quality assurance: inspects stored product
 Organization Structure and Reporting Relationships
 Restocking and storage workers typically report to supervisors or leading
hands who may also have responsibilities for restocking and storage
operations. Supervisors or leading hands typically report to warehouse
managers who will, in turn, report to a distribution director, depending on
the size and nature of the operation.
Warehouse Operations
Responsibilities and Job Types

Pick/Pack Responsibilities and Job Types

What Does a Pick/Pack Employee Do?




The following are the main types of jobs carried out in pick/pack operations:
• Obtain order slips
• Read items on order slips and locate storage position of items within the warehouse
• Gather the appropriate items on order slips
• Record items picked and update stock records
• Transport picked items to packing area
• Pack items safely in preparation for transport
• Choose the appropriate shipping vessel (e.g., cardboard box, tube, or wooden box)
• Manage order paperwork and use computer systems, scanners, and other technology
The key types of direct jobs and duties in warehousing pick/pack include the following:
• Order picker: picks goods to fulfill customer orders
• Order packer: packs and labels goods in readiness for shipment to customers and checks against the order for completeness and for any damages; also
replaces damaged items before the order is packed and labeled
• Stock mover: moves stock from one location to another, including from reserve storage locations to picking locations
The key types of indirect jobs and duties in warehouse restocking and storage include the following:
• Supervision: supervises floor processes, indirect labor supervision
• Facilities and housekeeping: maintains the buildings
• Inventory management: tracks and places product
• Quality assurance: inspects stored product
Organization Structure and Reporting Relationships

Pick/pack workers typically report to supervisors or leading hands who may also have responsibilities for restocking and storage
operations. Supervisors or leading hands typically report to warehouse managers who will, in turn, report to a distribution director,
depending on the size and nature of the operation.
Warehouse Operations
Responsibilities and Job Types
 Shipping Responsibilities and Job Types
 What Does a Shipping Employee Do?
 The following are the main types of jobs carried out in shipping
operations:
• Oversee incoming or outgoing merchandise or supplies stored in the
warehouse
• Maintain internal record-keeping systems
• Operate forklift or other handling equipment to transport goods from
staging areas to trucks
 The key types of direct jobs and duties in warehouse shipping
include the following:
• Hauler: transports pallets with equipment from the staging area to the
delivery vehicle
Warehouse Operations
Responsibilities and Job Types
 Shipping Responsibilities and Job Types

What Does a Shipping Employee Do?
 The following are the main types of jobs carried out in shipping operations:
• Oversee incoming or outgoing merchandise or supplies stored in the warehouse
• Maintain internal record-keeping systems
• Operate forklift or other handling equipment to transport goods from staging areas to trucks

The key types of direct jobs and duties in warehouse shipping include the following:
• Hauler: transports pallets with equipment from the staging area to the delivery vehicle
•
Shipping clerk: usually responsible for maintaining accurate inventory logs, supply lists, and invoice
records; also must display proficiency in both writing and computer skills. Clerks may store paperwork
(e.g., invoices) according to the companies’ filing systems. Clerks are more likely to maintain and store
other information, like inventory, via computer systems. Clerks may be required to complete forms and
other paperwork for vendor companies when placing orders; they correspond by phone, fax, or email
with suppliers, customers, and superiors, which includes relaying delivery or pickup scheduling
information or ordering supplies.
Warehouse Operations
Responsibilities and Job Types
 The key types of indirect jobs and duties in warehouse restocking
and storage include the following:




• Supervision: supervises floor processes, indirect labor supervision
• Facilities and housekeeping: maintains the buildings
• Inventory management: tracks and places product
• Quality assurance: inspects stored product
 Organization Structure and Reporting Relationships
 Shipping workers typically report to supervisors or leading hands who
may also have responsibilities for restocking and storage operations.
Supervisors or leading hands typically report to warehouse managers
who will, in turn, report to a distribution director, depending on the size
and nature of the operation.