What Is Warehousing?

Warehousing in the Philippines

Warehousing is an important part of the supply chain. Though not as complex and process-improving as the other parts of the logistical process, it’s still something that should never be overlooked.

At its core, warehousing is the act of storing merchandise in a facility before being sold. These products are then safely and securely stored in an organized fashion in large structures known as warehouses. The items are sorted and assigned tracking numbers so that the warehouse employees know where to find them. These tracking numbers show the time the item arrived at the warehouse, how long it’s been there, and the quantity of that item on hand.

In most cases, warehousing is frequently attributed to e-commerce and small or medium businesses. Most of the time, products are stored until an order is placed online. The order is then shipped directly from the facility to the consumer. For other businesses, their inventory is usually temporarily stored in a warehouse before it’s shipped to a physical store.

The importance of warehousing is further emphasized by the fact that it is essential in every logistics system. With warehouses, you don’t have to worry about where you should place excess merchandise. It also enables you to improve your inventory management procedures. The space that it provides also allows you to focus more on customer-centric concepts such as store ambiance and customer service.

The State of Warehousing in the Philippines

When it comes to warehousing in the Philippines, the process is made efficient due to the strategic location in the Indo-Pacific Ocean. As mentioned above, it opens routes that connect multiple countries. This makes the Philippines a major player when it comes to logistics services. Aside from that, many companies seek to establish their presence in the country as it also increases their reach.

The biggest contributors to warehousing in the Philippines are the industrial and retail sectors. Other notable contributors include container freight, cold storage, and agriculture based on revenues in 2017.

Nowadays, it’s very important to pay close attention to the rise of the e-commerce industry. The increasing prominence of online shopping makes it a big impacting factor in warehousing in the Philippines.

In recent years, certain companies that operate in the retail sector, Fast-Moving Consumer Goods (FMCG) sector, pharmaceutical sector, apparel, and other accessories are forecast to experience strong growth. The most prominent of them is the e-commerce industry. It’s expected that these companies will require more warehousing facilities to store the products. In return, this will trigger increased demand for warehousing in the Philippines.

The Philippines is experiencing an increase in manufacturing activities. This rising domestic consumption and international trade activities are primary factors that contribute to the growth of warehousing in the Philippines.

This has led to warehousing companies competing against each other more rigorously. They contest through the size and location of their warehouse. In particular, the location is very important as it needs to be in an appropriate area for the customer’s needs which reduces costs of the warehouse.

In recent years, warehousing in the Philippines has witnessed an increase in trade flow which has positively affected the demand for transportation and storage facilities. There has also been a yearly increase in cumulative cargo throughout the country that has led to a positive influence on the Philippine warehousing industry.

The warehousing in the Philippines is relatively unknown to many. Most of the time, only logistics and e-commerce companies know of their presence. Nonetheless, it is a big contributor to the Philippine economy. And that means it’s also an opportunistic factor to skyrocket the country’s overall growth.

The state of warehousing in the Philippines is something that everyone should keep an eye on.

Step by Step Process of Warehousing

Containers

It is important that a stakeholder and their logistics provider establish a step by step process to ensure that the products are always well managed from end-to-end. Certain parts of the procedure can also be more specified depending on the client’s wishes. Make sure to go through each step thoroughly with your logistics solutions provider to get the best possible service

Here are the steps to warehousing in the Philippines:

1. Receiving

Your supplier must first send an Advance Shipping Notice (ASN) to your logistics provider in order for them to prepare the warehouse space accordingly. This must contain what kind of container the goods will come in: crates, cartons, pallets, or other kinds of repositories.

This can also ensure that once the products arrive at the warehouse, they can be easily verified by the managers present. After confirmation, your supply will then be prepared for the next stage, put-away.

2. Put-Away

Trusted logistics solutions providers, such as Airspeed, have a Warehouse Management System (WMS) in their warehouses to ensure proper put-away. Operators will transfer the products from staging to storing for further examination.

A bar scan or manual inspection will determine what storage unit has been prepped to receive the goods. After which, they will be transported to their respective locations and stored. The operator will then confirm that the put-away process has been completed.

The next stage starts the process of distribution.

3. Pick and Pack

Warehousing in the Philippines handles complex businesses with local and international distribution. Separating their goods from storage into different batches cost a large number of resources such as manpower. Logistics solutions providers can offer this step in order to reduce the cost of their customers. Pick and Pack is the process of separating the goods in preparation for dispatching or temporary storage.

Picking

The primary stage is the picking of goods once they have been received from storage. Some customers opt for their goods to go directly into dispatching. Others, such as those who prefer their goods in smaller containers, undergo a secondary process.

The Secondary stage is the second picking process used to sort the goods into batch orders or single orders. This will depend on the customer’s request. The secondary stage is popular for the e-commerce industry as it requires smaller batches of goods to be dispatched at a quick rate.

Packing

Different distribution systems have different ways of packing. Discuss your preferred method of packing with your logistics service provider. Warehouses have a number of set rules to ensure that your goods are packaged as efficiently as possible. One of the most important rules to note is that goods must be traceable and easy to find. Another is that goods must be packed depending on their properties to ensure their safety (size, quantity, toxicity, etc.)

4. Dispatching

Automated systems are used by logistics providers to prepare goods for departure. Warehousing in the Philippines has professional managers to operate these systems to ensure the proper flow of goods through different stages. Their main goal is to prepare the products in time for the arrival of carriers. With the number of goods going through the different areas, it is crucial that they are managed well in order to prevent any pile-up.

5. Returns

You need to establish a set system in the case of any returned goods from your customers. Warehousing in the Philippines requires Return Management Authorisation (RMS), in order to note in their system what is being returned and why.

Discuss what you would like the warehouse to do in case the stock is returned. You can opt to return it into storage, repair it, discard it, or even recycle the goods. The warehousing management team will constantly update the inventory to keep the system and you in check at all times.

https://airspeed.ph/warehousing-philippines/