• Client Login
  • Request a Demo
1-866-252-2373 [email protected]
Cadre Tech
  • Features
        • Cadre Technologies WMS Features

        • Receiving
        • Putaway
        • Inventory Management
        • Order Management
        • Multi Carrier Shipping
        • 3PL Billing
        • Reporting and Analytics
        • Kitting
        • Inventory Replenishment
        • Cycle Counting
        • Labor Reporting
  • Solutions
        • Cadre Technologies Solution

          Cadre Technologies is an industry leading innovator of warehouse management solutions and supply chain visibility tools for distribution, manufacturing, and 3PL, 4PL logistics operations.

          Our solutions can be installed on premise or hosted in the cloud. We are customer focused and want to find the best solution for you and your business.

        • Cloud Based WMS Solutions
        • Distribution & Manufacturing WMS
        • eCommerce Warehouse Management System
        • Supply Chain Visibility
  • Industries
        • Industries We Cover

        • 3rd Party Logistics
        • Cold Storage
        • Pharmaceuticals/Nutraceuticals
        • Wholesale and Industrial Distribution
        • 4PL Visibility
        • Food & Beverage
        • Consumer Packaged Goods
        • All Industries
  • Integrations
        • Wide Range of Integration Solutions

          At Cadre Technologies, our cutting-edge warehouse management system boasts unparalleled integration capabilities. We empower businesses to achieve seamless connectivity with a diverse array of applications and services.

          Whether you’re seeking to harmonize your operations with existing systems, seamlessly incorporate third-party applications, or embrace the future of warehousing through integration with automation technologies and warehouse robots, Cadre Technologies provides the robust integration solutions you need.

        • Accounting/ERP
        • Shipping
        • Ecommerce
        • Automation/Robotics
        • EDI
        • API
  • Services
        • Cadre Technologies Services

          Learn more about Cadre Technologies services and events including implementation, consulting, webinars, user conference, training, and software support.

        • Consulting
        • Implementation Services
        • Training
        • Software Support
  • Resources
        • Cadre Technologies Blog

          Don’t miss our recent updates. Subscribe to Warehouse Best Practices.

        • White Papers/Case Studies
        • Press Room
        • Blog
        • Videos
        • Data Sheets/Brochures
  • Company
        • Learn more about our company history, partnerships & associations, team and our dedication to providing the best WMS solutions for over 20 years.

        • About Cadre Technologies
        • Partners & Associations
        • Meet the Cadre Team
        • Customer Community
        • Contact Us
  • Insights
        • "Modern food supply chain warehouse with conveyor belts and robotic forklifts under bright lights, featuring real-time data displays."

          The Hidden Costs of Inefficiency in Food Supply Chain Data

          June 5, 2025 | By Christen Thomas

          "Modern 3PL warehouse with robotic forklifts and IoT-enabled conveyor systems managing diverse inventory."

          Effective Distribution Management for 3PLs: Key Strategies & Challenges

          May 29, 2025 | By Christen Thomas

          Robotic forklifts and conveyor belts manage inventory in a technologically advanced warehouse.

          Mastering Inventory Turnover Calculation: A Practical Guide

          May 23, 2025 | By Christen Thomas

          See More Blogs

  • Pricing
  • Menu Menu

Understanding Warehousing: Benefits and Key Processes

Blog
interior of large warehousing facility

Recognized. Trusted. Proven. See why Cadre made the Top IT Providers list—and how we can help you succeed| Learn More

Reading Time: 10 minutes

In today’s fast-paced e-commerce world, where customer expectations are higher than ever, efficient warehousing is not just a luxury—it’s a necessity. Warehousing ensures that products are available when needed, enhancing supply chain logistics and boosting customer satisfaction. This guide will explore the key processes and benefits of warehousing, providing you with a clear understanding of its critical role in business operations.

Key Takeaways

  • Warehousing is vital for efficient business operations, helping manage supply and demand fluctuations, reducing delivery times and costs, and improving customer satisfaction.
  • Key warehousing processes include receiving shipments, storage, order picking, packing and labeling, and shipping operations. These are crucial for maintaining inventory accuracy and order fulfillment efficiency.
  • Modern warehousing trends include the adoption of smart technologies, sustainable practices, and flexible storage solutions to meet evolving business demands and enhance operational efficiency.

Defining Warehousing

Warehousing is essential for storing products safely before they reach customers. It helps businesses manage inventory and balance supply and demand. A warehouse isn’t just a storage building; it’s a key part of the supply chain, designed to hold goods for sale or distribution.

Strategically placed warehouses can significantly improve logistics by:

  • Reducing delivery times
  • Cutting shipping costs
  • Boosting customer satisfaction
  • Enhancing operational efficiency

Well-managed warehousing offers several key benefits, including:

  • Purchasing in bulk to reduce costs
  • Effective inventory management
  • Lowering distribution costs
  • Ensuring timely deliveries to customers

In today’s fast-paced supply chains, understanding the power of warehousing is more important than ever.

warehousing process illustration

Key Functions and Processes in Warehousing

To appreciate the importance of warehousing, it’s essential to understand the key functions and processes involved:

Receiving: Accepting goods from suppliers and ensuring they are accounted for and in good condition.

Storage: Placing products in appropriate locations to maximize space and maintain quality.

Order Picking: Selecting and retrieving goods to fulfill customer orders.

Packing and Labeling: Consolidating and securely packing items, then labeling them accurately for shipment.

Shipping: Preparing and transporting products to their final destination.

Each of these steps is crucial for maintaining inventory accuracy and ensuring efficient order fulfillment.

Receiving Shipments

Receiving shipments is the first step in the warehousing process. This involves transferring responsibility for goods from the supplier to the warehouse, ensuring all items are accounted for and in good condition. An efficient receiving system sets the tone for the rest of the warehousing operations. By accurately verifying incoming goods, warehouses can prevent errors and streamline the entire supply chain.

To optimize the receiving process, modern warehouses employ various technologies and equipment, such as power pallet trucks, conveyors, and dimensioning systems. These tools help speed up the processing of incoming shipments, ensuring that products are quickly moved from the receiving dock to their designated storage locations.

Storage Solutions

Once goods are received, the next step is storage. Effective storage solutions are essential for maintaining the quality of goods and optimizing warehouse space. This involves placing products in their most appropriate storage locations to maximize space and labor efficiency. For instance, a chocolate company shipping its products nationwide would require climate-controlled storage to maintain the quality of the chocolates.

Slotting optimization systems can be used to allocate the best storage locations for different types of cargo, further enhancing warehouse efficiency. These systems ensure that products are stored in a way that:

  • Reduces damage and losses
  • Maximizes space utilization
  • Improves picking and replenishment processes
  • Increases inventory accuracy

Ultimately, slotting optimization contributes to more efficient warehousing operations.

Order Picking

Order picking is the process of selecting and retrieving goods from storage to fulfill customer orders. This is one of the most time-consuming and expensive activities in a warehouse, accounting for up to 55% of total operating expenses. Efficient order picking is crucial for timely and accurate order fulfillment.

To streamline this process, many warehouses use technologies such as automated pick lists and voice-picking systems. These tools help guide warehouse staff in picking the right items quickly and accurately, reducing errors and labor costs. By implementing these technologies, warehouses can significantly improve their order fulfillment process.

Packing and Labeling

After picking, the next step is packing and labeling the items for shipment. This involves consolidating the picked items, packing them securely, and labeling them accurately for transit. Proper packing and labeling are essential to minimize damage during transportation and ensure that customers receive the correct products.

Warehouse Management Systems (WMS) play a crucial role in the packing process by:

  • Automating packing instructions
  • Determining the appropriate packaging materials
  • Reducing the risk of damage
  • Ensuring proper order consolidation

This makes the packing process more efficient and reliable.

Shipping Operations

Shipping operations involve the preparation and transportation of products from the warehouse to their final destination. This process ensures products reach their intended recipients in a timely and efficient manner. It includes reviewing orders, picking goods from storage, packing items securely, and coordinating with carriers for timely delivery. Effective shipping operations ensure that the right products reach the right customers at the right time.

Distribution planning is a critical aspect of shipping operations and supply chain management. By optimizing distribution routes and coordinating shipments, warehouses can reduce shipping costs and improve delivery times. This not only enhances customer satisfaction but also contributes to overall supply chain efficiency.

male worker operating warehousing machinery

Types of Warehouses

Warehouses come in various types, each catering to different business needs and offering unique benefits. These include public, private, and bonded warehouses, each with its own set of advantages. Choosing the right type of warehouse is crucial for meeting customer demands, reducing costs, and streamlining supply chain strategies.

Public Warehouses: Public warehouses provide flexible and scalable storage solutions, especially beneficial during seasonal production cycles or when testing new markets without requiring large capital investments. They are ideal for short-term storage and offer affordable options for businesses that do not want to commit to long-term leases.

Private Warehouses: Private warehouses are owned and operated by companies for their exclusive use, providing greater control over inventory and operations. Companies using private warehouses benefit from better control over their inventory, the ability to customize the warehouse to meet specific business needs, long-term cost efficiency, and asset protection. Despite the significant upfront investment, private warehouses provide these advantages.

Bonded Warehouses: Bonded warehouses store imported goods under customs control, allowing companies to defer payment of duties until the goods are released from storage. This provides operational flexibility and can be particularly beneficial for businesses dealing with large quantities of imported goods. For example, a company importing wine can store it in a bonded warehouse until the duty-free period expires, delaying the payment of excise taxes.

Warehouse Management Systems (WMS)

Warehouse Management Systems (WMS) are essential tools for managing warehousing operations and the movement of inventory. A WMS provides real-time management capabilities, reducing errors and optimizing warehouse tasks. By streamlining operations such as receiving, storing, picking, packing, and shipping, a WMS contributes to efficient order processing and reduced operational costs.

Integration of WMS with ERP (Enterprise Resource Planning) and TMS (Transportation Management Systems) ensures:

  • Seamless data flow
  • Real-time visibility
  • Automated order fulfillment processes
  • Connected sales channels
  • Real-time inventory tracking to prevent stock discrepancies

A WMS offers full visibility into real-time stock levels across each location, optimizing workflows and preventing overstocking and stockouts. It also provides real-time reporting of key performance indicators (KPIs) such as order accuracy and inventory levels, further enhancing warehouse management.

Inventory Management

Inventory management in warehousing involves monitoring stocked goods, tracking inventory levels, ordering and restocking inventory, and demand forecasting. A WMS provides detailed visibility into inventory, tracking goods from receipt to dispatch, ensuring inventory accuracy.

Key aspects of inventory management include:

  • Conducting audits
  • Optimizing inventory management by meticulously tracking inventory movements, orders, and restocking procedures
  • Maintaining optimal inventory levels
  • Reducing the risk of stockouts or overstocking

Effective inventory management helps businesses maintain the right balance of stock, ensuring products are available when needed while minimizing carrying costs.

Automation and Technology

Automation and technology play a significant role in modern warehousing. Elements of warehouse automation include automated conveyors, cranes, and storage and retrieval systems coordinated by computers and programmable logic controllers. Technologies such as Automated Storage and Retrieval Systems (AS/RS) and Automated Guided Vehicles (AGVs) enhance efficiency and streamline warehouse operations.

Smart warehouses leverage AI technologies like robots and drones to automate packing, weighing, transporting, and storing materials. The integration of 5G technology facilitates faster data transmission and real-time monitoring of warehouse operations, further improving efficiency.

Real-Time Insights

Real-time insights from a WMS enables informed decision-making by providing:

  • Full visibility into real-time stock levels across each location
  • Optimization of workflows
  • Efficient order routing
  • Prevention of overstocking and stockouts

Real-time reporting of key performance indicators (KPIs) such as order accuracy and inventory levels further enhances warehouse management. These insights allow businesses to make data-driven decisions that improve operational efficiency and customer satisfaction.

female warehouse worker setting box on pallet

Warehousing in eCommerce

Warehousing plays a critical role in supporting eCommerce businesses by efficiently storing inventory, managing order fulfillment, and handling returns. Effective warehousing offers a range of benefits for eCommerce businesses, from startups to multinational corporations. Many eCommerce businesses choose to work with third-party logistics companies to avoid the hassle of warehouse management.

Fulfillment companies may use proprietary software to manage orders, picking, packing, and shipping inventory to customers. Amazon fulfillment centers are an example of sophisticated distribution centers that employ advanced technology to handle both incoming and outgoing shipments efficiently.

Storing Inventory for eCommerce: Storing inventory involves placing products in designated locations within a warehouse for efficient inventory storage, tracking, and management. Warehouses act as central points for storing inventory, enabling more accurate tracking and management, which is crucial for eCommerce businesses.

Fulfillment Centers: Fulfillment centers handle order fulfillment for eCommerce businesses, managing processes such as picking, packing, and shipping. These centers ensure that orders are processed efficiently and delivered to customers in a timely manner, enhancing overall customer satisfaction.

Handling Returns: Efficient return processes in warehouses play a critical role in maintaining operational smoothness and customer satisfaction. Key considerations for handling returns include being prepared for returns, receiving, assessing, and processing returned items, as well as providing prepaid return labels and tracking information.

Cost Considerations in Warehousing

Cost considerations are a critical aspect of warehousing, impacting overall business profitability. Warehousing costs include factors such as the cost per square foot of warehouse space, which rose from $8.22 in 2023 to $8.31 in 2024​​. Additionally, the average storage price per pallet per month increased from $18.30 in 2023 to $20.37 in 2024​. These costs can vary based on the warehouse location, the type of storage solutions offered, and the specific needs of the business.

Managing these costs involves careful planning and optimization. For instance, businesses with seasonal fluctuations may find leasing dedicated space costly during low seasons and insufficient during peak seasons. A robust costing system should account for space allocation, handling time, and the number of SKUs, as more SKUs typically lead to higher storage expenses. By considering these factors, businesses can choose the right warehousing solutions to save money, meet customer demand, and drive efficiencies.

Safety and Security in Warehousing

Safety and security are paramount in warehousing, addressing unique health and safety challenges recognized by the National Institute for Occupational Safety and Health (NIOSH) in the United States. Regular training and inspections are essential for ensuring that all employees are knowledgeable in fire safety processes and that all safety measures are in place and functioning as required. A culture of safety, reinforced by managers at all levels, can create a safe and productive warehouse environment.

Warehouses often require emergency plans that address fire safety, exits, and first aid provisions. Ergonomic risks from lifting heavy items, repetitive tasks, and awkward postures can lead to musculoskeletal disorders (MSDs), making it essential to focus on worker safety and ergonomics through the use of wearable tech and ergonomic equipment. Proper training and certification for forklift operators, maintaining clear floors and aisles, and handling hazardous chemicals with proper protocols are all critical components of a safe warehouse.

Recent Trends in Warehousing

Recent trends in warehousing are reshaping the industry, driven by technological advancements and changing business needs. Cutting-edge, smart warehousing integrates IoT devices, AI, and machine learning for real-time inventory tracking and predictive analytics, enhancing operational efficiency. Enhanced data analytics and AI will also soon help optimize more warehouse operations by improving forecasting and decision-making.

Sustainable practices are becoming more prevalent, with warehouses adopting solar power, energy-efficient lighting, and sustainable building materials. On-demand warehousing offers flexible, scalable storage solutions, catering to fluctuating e-commerce demands and seasonal variations. Additionally, customization and personalization trends require warehouses to adapt to handle diverse products and packaging, further emphasizing the need for innovation and flexibility in modern warehousing.

male warehouse worker using cadre technologies wms software tablet

Cadre Technologies: Your Partner in Efficient Warehousing

Cadre Technologies provides advanced warehouse management solutions and supply chain visibility tools for ecommerce, distribution, manufacturing, and 3PL/4PL logistics operations. Our solutions are designed to enhance efficiency, accuracy, and integration across your warehousing processes.

Key Solutions and Features

Cloud-Based WMS Solutions:

  • Receiving and Putaway
  • Inventory Management
  • Order Management
  • Multi-Carrier Shipping
  • 3PL Billing
  • Reporting and Analytics
  • Kitting
  • Inventory Replenishment
  • Labor Reporting

Integration Capabilities:

  • Accounting/ERP Systems
  • Shipping Systems
  • Ecommerce Platforms
  • Automation/Robotics
  • EDI and API Integration

Benefits of Cadre Technologies

  • Enhanced Efficiency: Streamline warehousing processes for faster, more accurate operations.
  • Real-Time Visibility: Achieve comprehensive supply chain insights with our advanced tools.
  • Flexible Deployment: Choose between on-premise or cloud-hosted solutions to fit your business needs.

Transform your warehousing operations with Cadre Technologies. Explore our website to learn more about our innovative solutions and how we can help your business thrive.

Summary

In summary, warehousing is a pivotal component of the supply chain, encompassing a range of processes that ensure efficient storage, management, and distribution of goods. From receiving shipments to shipping products, each step is crucial for maintaining operational efficiency and customer satisfaction. Understanding the different types of warehouses and leveraging advanced Warehouse Management Systems (WMS) can significantly enhance warehousing operations.

As we look to the future, trends like smart warehousing, enhanced data analytics, and sustainable practices will continue to shape the industry. By staying informed and adapting to these changes, businesses can harness the full potential of warehousing, driving efficiency, reducing costs, and delivering superior service to their customers. Embrace the power of warehousing and transform your supply chain for the better.

Ready to enhance your warehousing operations? Contact Cadre Technologies today and discover how our innovative solutions can help your business thrive.

Frequently Asked Questions

What are the key functions of warehousing?

The key functions of warehousing involve receiving shipments, storage, order picking, packing and labeling, and shipping operations. These are vital for effective order fulfillment and inventory management.

How do Warehouse Management Systems (WMS) improve warehousing operations?

Warehouse Management Systems (WMS) improve warehousing operations by optimizing tasks like receiving, storing, picking, packing, and shipping. They provide real-time inventory tracking, reduce errors, and integrate with other systems for seamless data flow.

What are the benefits of public warehouses?

Public warehouses offer flexible and scalable storage solutions, making them ideal for short-term storage, seasonal businesses, and companies testing new markets. They are cost-effective with no large capital investments required.

How does automation impact modern warehousing?

Automation in modern warehousing enhances efficiency through technologies like AS/RS, AGVs, and drones. This streamlines operations, reduces labor costs, and improves accuracy, greatly impacting overall productivity and competitiveness.

What are the recent trends in warehousing?

Recent trends in warehousing include smart warehousing with IoT and AI integration, sustainable practices, on-demand warehousing, and customization to handle diverse products. These trends drive innovation and efficiency in the industry.

July 8, 2024/by Elijah Charbonneau

Recent Posts

  • "Modern food supply chain warehouse with conveyor belts and robotic forklifts under bright lights, featuring real-time data displays."The Hidden Costs of Inefficiency in Food Supply Chain Data
    June 5, 2025
  • "Modern 3PL warehouse with robotic forklifts and IoT-enabled conveyor systems managing diverse inventory."Effective Distribution Management for 3PLs: Key Strategies & Challenges
    May 29, 2025
  • Robotic forklifts and conveyor belts manage inventory in a technologically advanced warehouse.Mastering Inventory Turnover Calculation: A Practical Guide
    May 23, 2025

Table of Contents

Subscribe to Warehouse Best Practices


Recognized. Trusted. Proven. See why Cadre made the Top IT Providers list—and how we can help you succeed| Learn More

Ready to Learn More About Cadre’s WMS Solutions? Request a demo today

Success Stories

“Cadence WMS provides us real time data to allow us to monitor our daily activities in all of our warehouses. It has provided us the visibility to flex our staff across our network and also provides our clients the transparency they want into our daily operations.”

Understanding Warehousing: Benefits and Key Processes 1 - warehousing
Dave Jesse, COO, Bonded Logistics, Charlotte, NC

“We’ve used Cadre products for quite some time now. Their willingness to work with us to customize and connect to other systems and provide seamless solutions for our customers through their online tools has been invaluable. Logiview has been a cornerstone of our logistics platform for many years.
”

Understanding Warehousing: Benefits and Key Processes 2 - warehousing
ArcBest, Director, Supply Chain Solutions, ABF Logistics, An ArcBest CompanyFort Smith, AR

“Cadre’s software allows us to meet the changing requirements of our warehouse clients and helps us remain competitive with new opportunities. The people are great to work with because they are responsive and understand our business.”

Understanding Warehousing: Benefits and Key Processes 3 - warehousing
Paul Delp, President, Lansdale Warehouse Company, Lansdale, PA
More testimonials

Recent Articles

"Modern food supply chain warehouse with conveyor belts and robotic forklifts under bright lights, featuring real-time data displays."

The Hidden Costs of Inefficiency in Food Supply Chain Data

Blog
Explore the hidden costs of inefficiency in food supply chain data and learn strategies to enhance efficiency and reduce operational challenges.
June 5, 2025
"Modern 3PL warehouse with robotic forklifts and IoT-enabled conveyor systems managing diverse inventory."

Effective Distribution Management for 3PLs: Key Strategies & Challenges

Blog
Explore the key strategies and challenges in distribution management for 3PLs to optimize logistics and stay competitive.
May 29, 2025
Robotic forklifts and conveyor belts manage inventory in a technologically advanced warehouse.

Mastering Inventory Turnover Calculation: A Practical Guide

Blog
Discover how to master Inventory Turnover Calculation with our practical guide. Boost efficiency and cut costs by optimizing your inventory management today!
May 23, 2025
More Articles

Denver Office
7900 East Union Avenue
Suite 1007
Denver, CO 80237
303-217-7030
[email protected]

Lenexa Office
8371 Melrose Drive
Lenexa, KS 66214
913-492-5700

Understanding Warehousing: Benefits and Key Processes 4 - warehousing
Follow Us on Facebook Follow Us on Twitter Follow Us on Linkedin Follow Us on Youtube
  • Solutions
  • By Job Role
  • Company
  • Industries
  • Resources
  • Careers
  • Products
  • Services
  • Partners

Privacy Policy | Cookie Policy | Terms and Conditions |© 2025 Cadre Technologies. All rights reserved.

Link to: The Essential Guide to WMS TMS Integration Link to: The Essential Guide to WMS TMS Integration The Essential Guide to WMS TMS Integrationwms tms integration graphic with vehicles and software on tablet Link to: 3PL Billing: Guide to Optimizing Your Invoicing Process Link to: 3PL Billing: Guide to Optimizing Your Invoicing Process 3pl billing guide with illustration of open box on computer3PL Billing: Guide to Optimizing Your Invoicing Process Scroll to top Scroll to top Scroll to top