Warehouse management is one of the most critical functions in any inventory-heavy industry. From planning for labor and equipment, to scheduling incoming and outgoing shipments, to, arranging and tracking the goods received; managing the complex processes of a warehouse is no simple task. Nevertheless, 46% of small to medium-sized businesses still lack a formal, automated method for tracking and managing inventory and just 20% of small businesses are currently taking advantage of inventory management software.
Thankfully, improving the management and shipment of inventory is not as difficult as it seems. Here are a few simple steps any company can take to tighten up its warehouse operations
Make Better Use of Floor Space
Instead of investing in expansion, or additional premises, free up additional yardage by improving your warehouse layout. Use storage spaces that are taller rather than wider, solutions such as pallet racking will optimize your use of vertical space. Store all similar items together, in a systematic order. Group items with a shorter shelf-life together, assign small items to appropriate storage spaces, and keep items of the same type in one area. This approach will reduce spoilage, minimize loss of goods, and maximize the use of existing space. Ship out any goods that do not need local storage. By using only the space you need, you can reduce storage, maintenance, and security costs.
Invest in Technology
Today, companies without an up-to-date Warehouse Management System (WMS) miss out on key opportunities. A WMS schedules staffing tracks goods via barcodes, and plans maintenance routes. It monitors performance metrics like shipping costs, error rates, and returns, enabling continuous improvements in critical areas.
Improve Labor Productivity
The workforce is often the most cost-intensive area of warehouse operation. Managers must emphasize key KPIs and integrate continuous improvement into warehouse culture. Encourage feedback from pick-and-pack workers to boost efficiency, and act on suggestions to enhance engagement. Provide training for supervisors to understand vendor, customer, and inventory needs. Use incentive pay to link efficiency with compensation and set competitive, achievable targets.
Vendor Compliance Policies
Your new focus on tracking performance metrics should include an examination of vendor deliveries.
- Are vendors delivering goods earlier or later than promised?
- Are the goods that are being received of the correct quality?
- Are they properly packaged?
- Are barcodes properly attached, and goods properly labeled?
It’s important that vendors are aware of the expectations for delivery and that processes are in place for dealing with continued non-compliance. Present metrics showing deficiencies in timing or quality of delivery to vendors, allowing them to make necessary adjustments. Pursuing this policy will reduce holding costs, increase delivery times, and ensure customers are receiving proper quality goods.
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