Warehousing and logistics are often used together or in tandem because they are essentially two sides of the same coin. Warehousing deals with the storage of goods while logistics focuses on transportation of the goods. Hence you should know each of these terms separately.
It would be evident from how the two topics are handled that they are each a separate head of operations and at the same time they are intertwined with each other, that they become inseparable for the most parts. The most progressive of organizations aim to have both an integrated logistics and warehousing activity rather than two separate entities.
As the name would suggest, warehouse management is the management that primarily focuses on how products are kept stored in a premise which would be the warehouse. It involves a range of activities that is not restricted to receiving of goods, shipping of goods, picking up the consignment etc.
The warehouse essentially is a storehouse that is used to store finished goods or partly finished goods as they are transported between different manufacturing facilities. Simple as it might seem, warehousing is something that keeps most businesses engaged full time in its management.
Logistics management or logistics is basically a part of supply chain management. It involves the entry and handling of goods at the factory or company premises and ensures the smooth running of the business.
Basically logistics involve the internal movement of goods, inventory management, transportation management and so on till the goods are eventually sold to the end user. It is essentially dealing with moving finished goods or intermediaries between premises.
The Connection Between Warehouse & Logistics Management
Both warehouse management and logistics management are dependent on each other for existence which is evident from how they’re handled. The fact is, one would not exist without the other. Such is the strong bond between the two.
By using warehousing and logistics in tandem you will be able to set up an efficient supply chain process in any industry. It does point to a requirement to translate customer demand to bring out finished products to the markets, so to speak.
Differences Between Logistics Management and Warehouse Management
Despite the interlinks between logistics management and warehouse management, the activities are indeed different from each other. We shall discuss the differences below.
In logistics management, the focus is on moving goods efficiently from one place to another. In case of warehouse management, it is the storage and associated activities that take precedence.
The handle in logistics management is on flow of products to meet customer needs. Warehouse management on the other hand is all about physically controlling finished goods or intermediaries.
Logistics management deals with the integration of material handling, information flow, inventory transportation, security of goods, etc. Whereas warehouse management deals with the management of stock, receiving and despatch of goods, inventory management, and so on.
Logistics management offers different categories like recovery logistics, recycling logistics, sales logistics, production logistics, etc. The different types of warehousing include fulfillment centers, controlled warehouses, distribution centers, etc.
The processes involved with logistics management are organizing and implementation activities. It also includes storage of goods at different locations. Warehouse management processes include unloading, storing, checking, receiving and distribution of merchandise or goods.
The prime objective of logistics management is to control costs to the businesses using the services. When it comes to warehousing, it aims to maximize profits by keeping operational costs to manageable levels.
The benefits to a good logistics management are reduced costs and improved efficiencies. The operations should be able to provide better service to the principal business and in turn keep costs low. In the case of warehouse management, the benefits are better inventory visibility, minimizing business risk, optimized supply chain, spot stocking, etc.
From the details given above, it is evident that both warehouse management and logistics management go hand in hand. In fact, business operations become smooth when both complement each other in the business.
Every business’s aim, no matter the field of operations, is to try to reduce operational costs. There is no better way of optimizing costs in the long run than to better control the logistics support as well as the warehousing activities.
Often it is possible to come across companies that are focused on warehousing or on logistics management alone. Thus, it is to be noted that each of the activities, that is logistics and warehousing, are huge areas of activities that have to be taken care of separately. The best results come when organizations get to integrate the working of the two to have a single unified entity that is the logistics part of the venture.
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Plus, we’re always up for a challenge, so whether you need help with a one-time project or ongoing support, we’re here for you. Contact us today to learn more!