INTERNATIONAL WAREHOUSING

MANAGEMENT
WHAT IS WAREHOUSE MANAGEMENT?
❖Warehouse management encompasses the principles and processes involved in
running the day-to-day operations of a warehouse. At a high level, this includes
receiving and organizing warehouse space, scheduling labor, managing inventory,
and fulfilling orders.
❖Warehouse Management is a broader term that includes other aspects of
warehouse operations, such as warehouse organization and design, labor, order
fulfillment, warehouse monitoring, and reporting.
WHAT IS AN INTERNATIONAL WAREHOUSE?
❖An international warehouse is a warehouse that’s set up internationally, typically
located in a global trade hub like New York, Houston, or Hong Kong. This lets you
deliver goods to your customers wherever they are, in a timely manner and with
minimal challenges.

❖In today’s global supply chain, international warehouses are your hubs. They
ensure timely delivery of goods to far-flung customers at an affordable cost and
with a minimum of shipping challenges.
4 KEY FEATURES OF THE INTERNATIONAL
WAREHOUSE MANAGEMENT SYSTEM
1. Management of Inventory
A WMS should provide good inventory management features. This improves
warehouse efficiency, organization, and accurate planning for new orders. This
approach tends to supersede the traditional approach of permanently assigning
locations, as this often leads to underutilized space.

2. Fulfillment Optimization
Customer orders should be analyzed to determine where products are located, and
the best available pick route. The system should also determine the best picking
location and the proper pick method. The system should be capable of maintaining
FIFO (first in, first out) integrity.
3. Receiving Intelligence
Your WMS should determine available locations for the products you receive and
automatically assign the best location. This stops warehouse personnel from
needing to search for available locations improves efficiency and takes care of
special storage considerations. A WMS should also identify cross-docking
opportunities.

4. Random Slotting
Random slotting means no items are assigned to a bin permanently. This allows for
more efficient use of space and better flexibility for changes in items and demand.
4 TYPES OF INTERNATIONAL WAREHOUSE
Public warehouse
A public warehouse is open for any business to use, at the discretion of the
warehouse operator. It’s usually the first choice for e-commerce businesses looking
for an international warehouse, since they can pay a fee to access existing storage
and fulfillment options outside their own country, without building the warehouse
themselves.
Private warehouse
Unlike a public option, private warehouses are owned by private companies. Think
of them as extensions of your business. If your headquarters are in the US, you
could build a private warehouse—solely for your own use—in another country to
cater to international shoppers.
Bonded warehouse
A bonded warehouse is a place for businesses to store inventory set to be imported
or exported. Also known as a customs warehouse and run by the local government,
it’s a way for businesses to bring products in or out of the country without paying
tax or import duties.
Distribution center
An international distribution center is different from traditional warehousing. A
warehouse stores goods, while distribution centers can do additional tasks like fulfill
and package orders. Some operators offer both services under the same roof.
INTERNATIONAL CUSTOMERS AND
GLOBAL WAREHOUSES
❖ With an international warehouse, you can create a better experience for your
customers abroad while drastically improving your shipping times. The worst-case
outcome would be not ultimately needing the space because your international
sales don’t spike as you expect.
❖ But the real magic moment will come when your international warehouse feels
like a fully integrated part of your business, even if it’s thousands of miles away
from your home base.
WHAT ARE INCOTERMS?
WHAT DO THEY DO?
❖ Incoterms is an internationally recognized set of terms that define the
responsibilities and obligations of the parties involved in the transport of
goods. Incoterms are used to clearly communicate the division of the cost of
carriage and risks associated with the international transportation and delivery of
goods between the seller to the buyer.
❖ Incoterms were first introduced in 1936 by the International Chamber of
Commerce (ICC) as different practices and legal interpretations between traders
around the world necessitated a common set of rules and guidelines for
interpreting the most commonly used terms in foreign trade. Incoterms are
revised periodically, roughly every 10 years, by the ICC to conform to changing
trade practices.
INTERNATIONAL COMMERCIAL TRADE TERMS
The seven Incoterms 2020 rules for any mode(s) of transport are:
EXW - Ex Works (insert place of delivery)
FCA - Free Carrier (Insert named place of delivery)
CPT - Carriage Paid to (insert place of destination)
CIP - Carriage and Insurance Paid To (insert place of destination)
DAP - Delivered at Place (insert named place of destination)
DPU - Delivered at Place Unloaded (insert of the lace of destination)
DDP - Delivered Duty Paid (Insert place of destination)
The four Incoterms 2020 rules for Sea and Inland Waterway
Transport are:
FAS - Free Alongside Ship (insert name of the port of loading)
FOB - Free on Board (insert named port of loading)
CFR - Cost and Freight (insert named port of destination)
CIF - Cost Insurance and Freight (insert named port of destination)
WHY A MODERN WAREHOUSE IS CRUCIAL TO
STAYING COMPETITIVE IN THE INDUSTRY?
The wholesale and distribution industry is undergoing a shift in how they
operate with warehousing and fulfillment in need of a modern-day makeover
to meet growing demand. Faced with the growing pressures to offer lower
prices, quicker delivery times, and personalized service in an evolving multi-
channel landscape, successful, savvy wholesalers, merchants, and distributors
must modernize their operations to stay competitive.
To remain relevant, businesses need to move forward and any business that is
hesitating could soon be left behind as competitors take the lead and harness
the power of digital transformation.
1. Technology Utilization
Digital transformation is about reviewing existing business processes in order to
change the existing ways of working to optimize technology and better utilize
resources to become the leanest most efficient operation. Industry leaders are
realizing that they need to evaluate their existing infrastructure and business
processes to modernize their warehouses.
2. The road to modernization
The report highlights that many businesses know transforming their warehouse
operations is key to future-proofing their business but 77% of respondents admit
they are slow to implement new devices and technology. To truly modernize a
warehouse, decision-makers must concentrate on three distinct areas and ensure
they are synchronized: the warehouse management system (WMS), devices, and the
infrastructure workers use to improve overall workflow performance and automation.
3. Modernise your warehouse to stay competitive
Don’t let legacy, disparate and manual systems hold you back from your full potential.
Tackling the challenges and addressing the pressures of the on-demand economy by
embracing technology to modernize your warehouse is the only way to future-proof
your business. The study highlighted that decision-makers plan to take an incremental
approach to warehouse modernization by first focusing on their most valuable asset,
their workers. They plan to create a smarter working environment for workers to
thrive, using technology to boost productivity and effectiveness.
AMAZON WAREHOUSE MANAGEMENT
Amazon delights customers with a vast selection of products and fast, often free,
shipping. However, delivering a simple, seamless shopping experience requires a
massive amount of infrastructure and technology behind the scenes. Some of
Amazon’s largest warehouses occupy nearly one million square feet, employ
thousands of associates, and can hold millions of different inventory items.
The Amazon Fulfillment Technologies (AFT) team builds and maintains the
company’s Warehouse Management Systems. Among these are Inventory
Management Services (IMS), which facilitate warehouse processes, including
inbound and outbound shipments, item picking, sorting, packaging, and inventory
storage. These are essential for on-time delivery of customer orders.
AMAZON WMS
Amazon WMS is a cloud-based warehouse management system that allows eligible
sellers to manage their inventory and orders. Built with Amazon’s deep expertise in
building world-class supply chain and fulfillment systems, Amazon WMS is a simple
yet powerful tool to streamline your warehouse operations.
AMAZON VS WALMART
Unlike Amazon, Walmart does not offer a service for fulfilling seller orders. Instead,
merchants are solely responsible for fulfillment, including managing shipping,
returns, customer service inquiries, and refunds. Sellers who need assistance with
managing their inventory and other fulfillment practices should consider using
software, like Sellbrite.
Walmart offers sellers five shipping options: Value (free), Standard, Expedited, Next
Day, and Freight.