When warehouse operations are running smoothly, it is easy to overlook areas to improve warehouse efficiency. However, small changes can have a profound impact along the supply chain, boosting productivity and ultimately, profits. Here are 4 simple changes you can make to improve warehouse efficiency.
1.Analyze Your Operation
When you know better, you do better. Tracking your metrics is the first step to finding areas that need improvement. Quality data can help you pinpoint problem areas so you can come up with more effective solutions without spending time or money on efficiency issues with broad strokes.
How and which metrics to track and evaluate depend largely on how you operate your warehouse. Some examples of useful data include inventory accuracy, fill rate, and cost per line item shipped. Most warehouses should have software that monitors these metrics, but it is how you evaluate and implement changes that can increase your efficiency.
2.Optimize Warehouse Space
Businesses are constantly changing, so it is vital to review your warehouse layout and storage system to optimize your space for better efficiency. Whether you have a small space or a vast warehouse, there is always room for space optimization.
Optimizing your space simply means making the most of the space that you already have. An optimized space gets rid of the clutter and allows you to store more items in less space, reducing the need for expansion, increasing loading and picking efficiency, and improving worker safety.
There are many areas of wasted space around your warehouse that can be costing you time and money. Some effective ways to optimize your warehouse include using the vertical space by adding more levels to your current racking and shelving system, reducing the aisle width, using containers that are designed to fit your product and using flexible shelving units to accommodate the various sized containers.
3.Lean Inventory Management
Lean inventory management utilizes the principle of “less is more.” Keeping essential stock only effectively means eliminating safety and excess stock to reduce the time and effort needed to manage that stock. This not only allows you to optimize your space more effectively, but it also allows workers to track and access stock more efficiently.
The key to using lean inventory management is to find the right balance between too much and too little stock. Too little stock can cause other problems such as poor customer satisfaction, while too much stock can leave you with suboptimal warehouse space.
4.Take Advantage of the Latest Technology
Warehouse technology is continually evolving and keeping up with the latest tech can help your warehouse to work more efficiently by cutting down on labor costs, optimizing storage and retrieval, and speeding up processing times.
There are hundreds of new tech options that can help you improve efficiency. Automated picking systems can reduce human error and speed up picking and fulfillment times, and automated storage and retrieval systems such as vertical lift modules can allow you to optimize and condense your storage space effectively. Moreover, integrated into these systems are cutting edge barcode technology, which fits seamlessly with your current warehouse management software.
Another tech upgrade that you might consider is the Internet of Things (IoT). This overarching connectivity concept allows warehouses to track inventory and gather data for analysis more accurately, limits human contact with inventory reducing the likelihood of errors and decreasing labor costs, and opens the possibility for more automated and virtual tasks such as virtual picking.
Final Thoughts
While some of these steps may require an initial financial outlay, they are a worthwhile investment in the future of your company.
If, after implementing these simple steps, you still see a reduction or stagnation in productivity, it may be time to call in the professionals. A warehouse consultant or experienced suppliers of warehouse storage solutions can identify problem areas that are overlooked and help you to implement a plan to improve the productivity of your warehouse.
