February 26, 2019

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Warehousing Meaning and Importance


StoryBoard Audio Script on Ware housing

Warehousing & Value Added Services

Warehousing refers to the practise of storing of goods in a particular building, besides storage of goods warehouse also provides some services which includes some services along with their value and that is called Value Added Service.

What are the Value added services?

The value added service provided by warehouse is

Pick & Pack, Packaging & Labeling, Kitting & Assembling, 3rd party Logistics(3PL), Vendor Managed Inventory(VMI), FF & E-FF Services, Transformational Cross Docking(TXD), Merge in Transit(MIT), Fashion Logistics(FL).

Warehouse Picking

Pick and Pack is a value added service provided by warehouse processing small to large quantities of product. Items are selected and picked from warehouse according to customer’s order and then packed for shipment. Pick Pack services are commonly used by on-line sellers. It also supports businesses with a high volume of small transactions often resulting in one or only a few items per order.

Picking Process

Picking and packing starts when Customer sends the request via sales ordering system to the Warehouse Management System (WMS). WMS generates pick list/ticket providing instructions to the warehouse on: Items to be picked staged & shipped, special handling instructions, labeling instructions.


Primary role of packaging is to contain, protect and preserve a product as well as aid in its handling & final presentation. Packaging also refers to the process of design, evaluation and production of packages.

Benefits of Packaging

Packing provides not only just packing some goods but also provides Physical Protection and it helps protection against shock, vibration, temperature, moisture and dust. Containment or agglomeration helps to provide agglomeration of small objects into one package for reason of efficiency and cost factor. Marketing helps to play an important role in encouraging a potential buyer. Convenience helps to supports features which add convenience in distribution, handling, display, sale, opening, use and reuse and finally it provides Security which helps us by providing authentication seals to indicate that the package and contents are not counterfeit.


Labeling is as important as packing. Labeling of a product provides information like how to use, transport, recycle, or disposal details.

Labeling details guarantees that customer and end consumers have access to complete information on: Package or the content, Composition of products, Specification of the products, Guarantee products safe use, Origin of the product and production method. And in addition to that Labeling on product also provides the following important information such as Shipper’s mark, Country of origin, Weight marking (in pounds & kilograms), Number of packages and size of cases, Cautionary markings, Port of entry and Labels for hazardous materials.

Package Sign & Symbols

Manufacturer of the product should familiar with all kinds of sign and symbols and also should maintain all the nationally and internationally standards while using these symbols. These are some of the package sign and symbols.

Kitting & Assembling

Kitting is preassembly of individual items into ready-to-ship kits instead of picking and packing individual items as orders are received. Kitting allows manufacturing companies to reduce the supplier base and the total cost of purchase yet still maintain full control of the manufacturing process.

Kitting can be of different types such as Sequential kitting, Batch kitting, Zone Kitting.

Kitting and assembly services allows to Reduce inventory by storing component products & finalizing product kits just before delivery, Respond quickly & economically to increased retailer demand for custom packs, Fulfill individual consumer orders such as bundling specified peripherals with a new purchase,  Reduce labor costs by kitting products from the warehouse itself.

Cross Docking

Cross Docking  is a dedicate logistics service where shipments from multiple providers are immediately received, broken, and staged for one or multiple outbound shipments to end customers based on specified order details.

Transformational Cross Docking includes performing additional value added services such as repackaging, labeling, etc. and it also focuses on Hi-Tech, Telecom and Consumer & Retail Industry.

Benefits of TXD towards Customers

Transportational Cross Docking helps customer by Usage of synergies between more than one supplier on inbound shipments as well as on outbound transportations and Economy of scale and faster reaction time.

Merge In Transit (MIT)

Merge In Transit is a process by which goods for a customer from multiple sources through multiple transport providers/modes for a single order are sent to a central location. The goods are then consolidated for an outbound shipment to the end customer based on order requirements and some of the products will be held in inventory until all components of the order have been received and consolidated.

Fashion Logistics

Fashion Logistics (FL) comprises end to end solutions for the fashion industry. It incorporate activities like Physical warehousing, Value added services like re-tagging, display creation, seasonal store set coordination, etc. Distribution services to customer distribution centers In-store deliveries Direct to end customer deliveries. This service is designed for the Fashion Industry.

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