Inventory managers know that goods not only have to be manufactured and transported cheaply but also stored and retrieved as optimally as possible. Even if no two companies are the same, there are a few basic rules that you can follow to increase your warehouse efficiency step by step. We have summarised the most important ones for you.
Use all available space
For more efficiency in warehousing, the first step is to optimize the use of tall storage units and wooden pallets. You can do this, for example, by arranging the goods in such a way that they use the regular compartments appropriately. This means, among other things, that you collect small goods in small compartments and large goods in large compartments.
Arrange the articles in such a way that the compartment is always full after a delivery. This has the positive side effect that the entrepreneur always has an overview of the inventory.
Another way to increase the efficiency of work in warehousing is to free the ordered items from the manufacturer's packaging. This is usually unnecessarily large and thus takes up a lot of space in the storage room. The packaging can be replaced with your own. However, this is only possible if the goods are not passed on to the customer. If this is the case, the intelligent arrangement of the articles is all the more important.
Avoid unnecessary inventory
To work efficiently in warehousing, the first thing to check is the assortment. For example, are there items from the series that are no longer offered on the shelves? Such so-called dead storage areas must be avoided at all costs if you want to be successful as a business.
The quantities stored must also be checked. Frequently required products must be available in large numbers. On the other hand, items that are only sold occasionally should be available in smaller quantities and reordered if necessary.
A good basis for the optimization of the inventory is the key figure optimal inventory. This is the sum of the safety stock and the optimal order quantity.
Update technology
The interesting thing about a good warehouse is it is always loaded with a good warehouse management system (WMS). It can be anything from an Excel spreadsheet to completely intuitive and automated software. The beauty of modern software is that it can be tailored to the needs of a particular system. It is essential to avoid waste and improve productivity in the warehouse. The right technology will help you measure and control what comes into the camp.
As a rule, the warehouse management system will create the papers and warehouse labels. Often it also creates the list of goods and the route that the picker has to follow. It handles inventory management so reports can be generated for management. For example, it shows whether a product is growing or declining in popularity. These are the benefits that a good warehouse management system can offer you.
Apart from this, with a well-planned automation system, as the amount of material handled increases, you can easily add more equipment because the system in place ensures everything works seamlessly together.
Consider using third-party logistics
Third-party logistics simply means that the logistics service providers take care of transport and warehousing and are also responsible for the administration and organization of these two activities.
Efficiently managing logistics takes time and effort, which is why some companies prefer to turn their attention to other areas. Working with a third-party logistics operator also means that the costs of land, premises and staff do not have to be covered. In the short term, this is economically advantageous.
Third-party logistics service providers usually have a network of warehouses so that goods can be brought closer to the end customer and orders can be delivered faster. Last but not least, the outsourcing of logistics makes it possible to offer more competitive shipping costs.
Organise workstations
Not only can you optimize inventory and space usage, but you can also optimize warehouse organization. Storage and retrieval processes must be recorded, inventories analysed and various processes structured. From a certain size of the company, warehouse management software is used for this. This works more economically than a natural person and not only records the movement of goods and stocks, but also picks collective orders and carries out other tasks.
Storage areas are among the less desirable cost items in the company. This is because the warehouse itself does not generate any sales, but only keeps and moves the capital of other areas. For this reason, warehousing should work with a high level of efficiency so as not to incur unnecessary costs.
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