A combination of activities and processes referred to as warehouse functions that make sure that goods move in and out of the facility effortlessly. Warehouse functions involve a wide list of steps, including receiving, put-away, picking, packing, and dispatching. Each stage demands accuracy, proper timing, and execution to ensure efficient and successful warehouse operations. ShipRelax 3PL warehouse operations further strengthen these processes with tech-enabled efficiency. Even a small error can affect workflows, leading to increased costs or shipping delays. ShipRelax, a trusted 3PL partner, supports these core warehouse activities with modern fulfillment solutions. Strong warehouse coordination, supported by efficient multi-carrier shipping strategies, helps prevent these delays and improves fulfillment flow.
According to the latest stats, the global warehouse management market is projected to grow from USD 4.57 billion in 2025 to USD 10.04 billion by 2030, marking a CAGR of 17.1%. This growth also reflects rising demand for advanced 3PL warehousing solutions.
This article discusses core warehouse functions along with strategies to manage them efficiently.
Warehouse Functions Overview for 3PL Operations
Warehouse operations involve a wide spectrum of processes such as receiving goods, storing them safely and systematically, packing them carefully, shipping them strategically, maintaining accounting precisely, and others. To ensure smooth and efficient management of these tasks, warehouse managers need to hire sufficient manpower, diverse tools, and cutting-edge technology, and more.
One such innovation is an AI-driven Warehouse Management System (WMS), which is leveraged by top-most warehouses, or 3PL brands, to accomplish various warehouse-related activities systematically. An AI-powered warehouse system widely used by leading 3PLs. The next-gen warehouse management platform helps in handling various aspects of the warehouse operations effortlessly. Planning the activities, tracking the inventory levels, and assessing the performance becomes smooth with the use of a robust, flexible and adaptable, and scalable platform.
Core Activities in Warehouse Operations for 3PLs
The activities in warehouse operations are as follows:
- Receiving Goods: This step involves receiving the goods to be stored in the warehouse. It might appear straightforward; however, it involves several complex steps, such as:
- Checking goods against purchase orders
- Evaluating product quality and condition
- Ensuring all items are properly accounted for
- Safe unloading and transportation of goods into the facility
This step is specifically performed by suppliers or logistics partners. Accurate warehouse order processing begins with strong receiving practices.
- Storing Goods: Storing goods is another important warehouse function. The goods received must be stored safely and systematically to ensure smooth and successful further steps of warehouse operations. A warehouse involves a diverse range of storage spaces to fulfill the storage requirements of different items. These warehouse storage spaces include:
- Cold Storage Units: These spaces include refrigerated areas or dry-ice setups to store perishable goods in the best condition.
- Cage Shelving Systems: These spaces are made of sturdy metal frames with wire mesh panels for storing boxed items.
- Pallet Racking Systems: These spaces use metal racks with wooden platforms to keep palletized goods.
- Bulk Bins: These storage spaces are utilized for loose commodities like grains, rice, or coffee beans.
These different storage spaces allow for keeping products organized, easy to access, and safe.
- Picking: The next step involves orders being picked and loaded for shipment. Different picking technologies are being used to retrieve items from storage, such as:
- Gravity-Fed Conveyor Systems: In this method, boxes slide onto a belt to transport them for loading.
- Mechanical Turntable Systems: These systems allow operators to locate products via touchscreen or scanners, after which robotic arms pick the items.
- Robotically Guided Vehicles (RGVs): These autonomous machines help transport goods throughout the warehouse.
An efficient picking process directly impacts your order processing speed, accuracy, and reliability. Many warehouses now use automated picking solutions to enhance throughput.
- Handling Returns: Returns management is another critical warehouse function that covers a list of steps:
- Receiving Returned Goods: Receiving the items from customers or suppliers, which are then checked for condition.
- Inspection of goods: Teams assess whether goods are in good condition or not. This step may demand testing or coordinating with manufacturers.
- Segregation of goods: Items are classified into resalable, repairable, or scrap categories.
- Processing: Repairable goods are refurbished for resale; unusable items are disposed of responsibly.
- Record Maintenance: All actions, including return reasons, condition assessments, and final disposition, are documented for transparency and tracking. Proper inventory synchronization ensures returned items are accurately reflected in stock.
- Data Gathering and Analysis: Data capturing and analysis have an important role in ensuring smooth and efficient warehouse functioning. Warehouse generates large amounts of data related to inventory, orders, the workforce involved, and equipment usage. Inventory data involves insights into the types and quantities of products stored in the warehouse.
Order data collects all incoming and outgoing shipments. Workforce-related data highlights employee tasks, productivity trends, and resource allocation. Equipment data focuses on machine utilization, performance rates, maintenance needs, and downtime.
By analyzing this collected data, warehouse managers gain real-time insights, which help in data-driven decision making, reduce operational costs, and boost productivity and accuracy. Advanced warehouse data analytics strengthen forecasting and planning.
Warehouse Management Technology for Efficient 3PL Operations
Warehouse management technology ensures effortless warehouse operations. FulFillor is a next-gen, scalable WMS software that ensures greater efficiency, boosted productivity, and enhanced safety of the workforce.
These systems are available in different types, including tools such as barcode scanners, RFID readers, and voice recognition systems. Cloud-based WMS platforms offer additional flexibility and scalability. The Cloud-based WMS helps automate nearly all warehouse operations involving receiving, storing, picking, packing, and shipping. Through automation, businesses can reduce manual efforts and profoundly lower human errors, but also speed up operations and reduce operational costs while ensuring smoother inventory flow.
Real-time insights are another great advantage of leveraging the WMS system. By consolidating all operational data, including stock movements, workforce activities, machine usage, and other data into a single, unified platform, it helps evaluate performance and predict demands to optimize inventory planning. As per the latest data and stats, approximately 60% of WMS systems offer mobile capabilities, enabling real-time monitoring, tracking across the warehouse. Leading 3PL providers like ShipRelax rely on advanced WMS capabilities to streamline day-to-day operations and ensure error-free fulfillment.
Here are some strategic ways you can improve the speed and performance:
- Optimize Your Warehouse Layout
A well-organized layout and proper placement are crucial for reliable warehouse functions. Grouping similar products and arranging storage zones strategically can help reduce unnecessary movement and speed up workflows. Moreover, you can place high-demand or frequently shipped items closer to the packing and dispatch area, reducing picking times and boosting productivity.
- Maintain streamlined inventory levels
To ensure aligned warehouse operations, maintaining optimal inventory levels is important to help avoid overstocking and stockouts, reducing storage costs, and ensuring the right stock quantities are available at the right time and location. Techniques like the Just-in-Time (JIT) inventory method improve accuracy, reduce waste, and allow smoother replenishment cycles.
- Use an Intelligent Warehouse Management System (WMS)
Executing a next-gen WMS system can help you transform day-to-day operations by automating tasks and offering real-time insights. This will significantly improve the accuracy of warehouse tasks such as receiving, picking, packing, tracking goods, and others. As per the Logistics Management Report, nearly 85% of warehouses and 3PL brands use the WMS solution to automate and simplify warehouse tasks.
Key Takeaways for 3PL Warehouse Success
Warehouse functions encompass a wide range of activities supported by skilled staff using advanced 3PL WMS technologies and equipment. Today, nearly 85% of warehouses rely on robust warehouse management systems (WMS) to automate these tasks with greater efficiency and accuracy.
According to the latest research, the global WMS market is estimated at approximately USD 2.88 billion and is expected to increase to USD 8.38 billion by 2030. This highlights a strong CAGR of 19.9% from 2025 to 2030.
The rapid adoption of these tools showcases the great value of WMS, which automates almost all types of warehouse tasks, reducing overall costs, manual errors, and enhancing operations. Lastly, integrating advanced technology is highly essential to enhance warehouse speed and performance.
To know how ShipRelax and Fulfillor can help you accelerate warehouse operations efficiency, you must connect with our team today!
ShipRelax delivers complete 3PL warehouse optimization through advanced fulfillment workflows, efficient inventory control, and real-time tracking.
