Warehouse management in Bangladesh is evolving rapidly in e-commerce, pharmaceuticals, manufacturing, and FMCG. It’s because the warehouse management helps in operating the day-to-day activities of the warehouse. Here, the processes are receiving, storing, picking, packing, managing returns, and many more.
Most businesses are implementing Warehouse Management Systems (WPS) for effective tracking of warehouse operations. The cloud-based WMS is now in demand. But the best practices of the warehouse are only possible with 5S: Sort, Set in Order, Standardize, Shine, and Sustain. Let’s get deeper into the concept.
What Is Warehouse Management in Bangladesh?
The warehouse management in Bangladesh means administration and control of warehouse operations occurring every day. It mainly includes storing and handling functions of the warehouse. Such as picking, tracking, packing, optimizing storage, and managing security of the warehouse. Now the logistic infrastructure is increasing day by day. So we can expect fast delivery, cost-efficiency, and customer satisfaction from warehouse management.
What Are the Essential Warehouse Management Processes?
Starting from managing inventories to fulfilling orders, warehouse management needs to follow some process. Let’s go through the warehouse processes below:
Receiving & Inspection
The warehouse team first receives the inventory from suppliers. They check the inventories to see if the goods have been delivered as per the demanded quality and quantity. Then they record it in their inventory software. Sometimes they use a predetermined system that can help track and compare the received goods with the ordered goods. Then they are transferred to their allotted storage units. This ensures all products are stored properly, which facilitates order fulfillment.
Storage & Slotting
In the storage process, products are stored in their appropriate locations. Its target is to find, track, and retrieve products easily. That’s why the warehouse team uses the slotting process also. Here, they need to organize and rearrange the products. To determine the best storage location, they need to consider the product size, demand, and picking frequency of the items.
Order Picking
Order picking involves retrieving the products from the storage locations to fill up the stock. The Grand View Research says that 50 to 55% of the operating cost of the warehouse covers order picking only. However, the warehouse staff can pick the orders manually, or the team can use conveyor systems, which pick orders automatically. They work based on the size of the warehouse and the needs of the operators.
Packing & Shipping
Packing is done for the safe distribution of the products. Here, the picker picks items for shipments. The items are packed based on quantity, value, material type, and size of the product. This is to ensure that items reach the transit in proper condition, which determines customer satisfaction.
Returns Management
Return management basically includes handling and processing the returned goods. A warehouse management system (WMS) can help manage the influx of the returned items. It can compare the ordered products and the products received blind. The return management should also issue documents where customers can describe their reasons for return. And the management team must also provide options for refund and exchange of the goods.
Warehouse Management Systems (WMS): Types & Selection
Different warehouse management systems (WMS) have different capabilities. So, each kind of business is going to choose a different WMS. But these four are the most common types of WMS that are widely used.
4 Types of Warehouse Management Systems (WMS)
- Standalone WMS: It solely focuses on warehouse management functions, like order management, inventory control, and so on. The standalone WMS mostly uses the particular company’s on-premise hardware and is more affordable than an integrated WMS. And it easily integrates with ERP, IMS, TMS, etc. You can use it for small businesses.
- ERP-Integrated WMS: This coordinates with several supply chain processes even though they are out of inventory and warehouse management. Like orders, inventory, CRM, accounting, reporting, etc. It has end-to-end functionality and is available in some enterprise resource planning (ERP) platforms, not all. ERP-integrated WMS is a good option for large businesses that want a broad view of the entire supply chain.
- Cloud-Based WMS: Here, all information and data are stored in the cloud, just like Software-as-a-Service (SaaS). It works with online applications rather than hardware. So merchants can have access to it from any device. Any business, be it large or small, can use cloud-based WMS. Its work is to integrate with the warehouse’s tech stack and give reports on them.
- Supply Chain Modules: It integrates with the core capabilities of warehouse management. The end-to-end supply chain control and visibility are expanded because of the supply chain modules. Its main focus is on managing, planning, and optimizing all the stages of the supply chain. Besides, it includes synchronized management of orders, inventory, production information, and transportation.
How to Choose WMS for Bangladeshi Businesses?
Before choosing a warehouse management system (WMS), know what your warehouse needs right now. Is its inventory track not right, or is there any problem in packing? Or do you want to make big business plans for the future? Based on that, you have to choose your WMS option. Because for warehouse functions only, we have a standalone WMS. And for the holistic view of the supply chain, we have ERP-integrated WMS.
You must make sure the WMS you are choosing integrates with your existing system. Also, you should automate the shipping processes and update the inventory in on all sales channels. And see if the WMS has easy interfaces and is compatible with mobile. If you want your WMS to handle high order volumes, a cloud-based warehouse management system will be better. It will help with long-term success.
In Bangladesh, records are made in both Bangla and English. So multilingual support in WMS would be great for Bangladeshi businesses.
What Is the Main Function of Warehouse Management?
The main functions of warehouse management are directly linked to effective handling. Here’s a detailed breakdown:
- Tracking the stocks that the warehouse will receive. Then dispatch them to their respective places for shipments.
- Ensuring effective picking and packing with zone picking and batch picking systems.
- Optimizing the warehouse layout with vertical racking. This will help storing the items easily.
- Implementing security measures for the protection of goods. It can be through surveillance systems, access control, alarm systems, and so on.
- Connecting with TMS, IMS, ERP, etc., for seamless and automated operations.
- Ensuring adequate and trained staff for the handling of inventories and warehouses.
What Are the Principles of Warehousing?
Warehouse management not only ends in processing sales and maintaining stock levels. It needs to be maintained with more principle. Here are those 7 principles of warehousing that need to be followed.
Accessibility
Both the warehouse and inventories should be accessible enough. Staff and teams should have an easy movement to the warehouse. Materials should be easy to find and there should be ample transportation routes.
Space Utilization
With space utilization, we can facilitate storage capacity. Make sure the materials or inventories don’t take up more than 85% of the warehouse. It should be between 70% and 85%. Pallet racking and tall shelving units can be good options to minimize the camera coverage space.
Efficiency in Movement
For an efficient movement in the warehouse, we need to optimize its layout. For instance, we can keep the fast-moving items near the shipping area. Then we must design some particular picking areas so that we can optimize routes and avoid unnecessary movements.
Security & Safety
Both physical security and surveillance are needed for the safety of the inventories. Like, we can use fencing around the perimeters of the warehouse. Then we can control access with biometric scanners or key cards. CCTV cameras and motion sensors can also help in monitoring warehouse activities from afar.
Scalability
To ensure the scalability, warehouses should first ensure space maximization. Or they can use Retrieval Systems (RS) and Automated Storage (AS) to optimize the space. Also, they must implement WMS for managing inventories and tracking orders.
Cost Control
For cost control, we can reduce labor costs first. That’s possible with the right picking strategies so that the time for order fulfillment gets reduced. We can also use Automated Guided Vehicles (AGVs) and Retrieval Systems (RSs) to reduce manual labor. Again, we must implement strategies, like demand forecasting, to reduce carrying costs and excess stock.
Technology Integration
To optimize the warehouse operations, we need to integrate our systems. We can use WMS, the internet of things (IoT), radio frequency identification (RFID), and many other systems.
How to Optimize Warehouse Operations?
Efficient warehouse management is key to boosting productivity, cutting costs, and meeting customer demands. You can make your business run more smoothly and save time and money by carefully organising your warehouse, keeping it clean and safe, and setting up consistent procedures. The 5S methodology for warehouses has been derived from Japanese terms. Let’s check them out.
What Are the 5S in Warehouse Management?
Sort: It involves removing unnecessary items from the warehouse.
Set in Order: After sorting, items need to be set in order. They must be set based on their category and frequency of use.
Shine: This involves regular cleaning of the equipment and the warehouse itself.
Standardize: Here, we need to establish standard procedures and guidelines to ensure consistency in the warehouse.
Sustain: This is possible only through regular auditing and long-time discipline.
How To Utilize Space in High-rent Areas?
Space utilization is crucial, especially in high-rent areas of Dhaka. However, you can install taller racks in the vertical dimension. Mezzanine floors can also be great as they create additional levels in the warehouse. Besides, you can narrow the aisles and keep the most-used inventories in front and the least-used inventories at the back.
What Are the Cost Reduction Tactics for Local SMEs?
If you are operating an SME, your focus should be inventory management, space optimization, and operational efficiency. For that, you can implement just-in-time (JIT) inventories to minimize storage costs. Use WMS to track inventories in real-time. Or you can directly transfer the goods for shipment right after receiving them to minimize storage time. And most importantly, improve the pick routes of the warehouse.
Warehouse Solutions in Bangladesh: Companies & Software
The best warehouse solution is relying on a next-generation warehouse management system, like Financfy. Be it automating, monitoring, or optimizing the warehouse operations, Financfy can do these all.
What Is the Best Cloud-Based Warehouse Management Software in Bangladesh?
Financfy is Bangladesh’s leading cloud-based warehouse management software, designed to simplify the setup and management of multiple warehouses with detailed location and contact information. Its Inventory module provides real-time stock tracking, supports multi-currency transactions, and ensures compliance with local regulations, making it an excellent fit for retail and e-commerce businesses. The software includes easy-to-use tools for designating primary warehouses, editing, or deactivating them, along with a user-friendly interface and mobile access to streamline operations. Above all, Financfy’s real-time stock tracking stands out, helping businesses stay efficient and well-informed.
Conclusion
Since customer expectations are increasing, the need for warehouse management in Bangladesh is increasing. So it’s crucial now to adopt the essential warehouse management processes, their types, principles, and also the 5S. Most importantly, we need to track out warehouse operations, and Financfy is the best solution for this. It can easily cope with the customer-centric and data-driven future of Bangladesh.
FAQs
1.How often should I check my warehouse stock?
It depends on the size, numbers, and condition of your inventories. At least monthly or quarterly, you should check them. If needed, daily, when the number of inventories is huge.
2. How to prevent theft in Bangladeshi warehouses?
In Bangladeshi warehouses, you can prevent theft with a multi-layered approach. Like perimeter security, lighting, surveillance, limit access, alarm systems, etc.
3. What are common warehouse problems in Bangladesh?
Some common warehouse problems in Bangladesh are poor inventory management, improper warehouse layout, poor safety management, high labor turnover, etc.
4. What tools do Bangladeshi warehouses use?
Bangladeshi warehouses use software tools like Financfy, Biznify, Focus WMS, PrismERP, Sunshine, Sokrio DMS, Bangla Puzzle WMS, AmarSolution, and TallyPrime for real-time inventory tracking, order management, and operational efficiency.
5. How to organize a small warehouse in Bangladesh?
To organize a small warehouse in Bangladesh, you have to first plan the layout. Try making it U-shaped and always use vertical shelving. Label everything and use signage to guide traffic flow. Also, use software systems to track your inventories and ensure the staff are well trained.
