4 Useful Tips To Increase The Efficiency Of A Warehouse

Acting as platform that connects suppliers and customers to the manufacturing facilities may be the primary job of a warehouse. However, it isn’t the only one! As the all-important storehouse of an organization’s supply chain, such a facility must strive to be efficient in handling, storing and issuing products if they wish to bring down the overall time and cost associated with the activity and have a positive impact on the bottom line. Discussed below are four ways in which a warehouse manager can work to improve the efficiency of the facility to achieve the aforementioned objectives.

Start By Reviewing Productivity

Before you can enhance something, you must first evaluate where you stand and what specific areas are in need of improving. Therefore, assess whether you are fully utilizing the available resources at the moment and if not, identify the flaws in the warehousing procedure. Inefficiency in one part of the supply chain can have an amplified impact on the functions that come after it and therefore, it is imperative that you amend any existing problems before they get out of hand. Reviewing the entire process in this manner will also prevent managers from senselessly allocating time, money and effort into trying to fix a problem when its root cause is still hidden.

Warehouse Layout

In a facility where products, people and machines are constantly moving around and interacting with each other, layout becomes a crucial factor which determines the overall productivity. From organizing the shelves to assigning routes for the vehicles, there are so many factors that require the attention of a warehouse manager, and all of them are equally important. Incorporate safety barriers and walkways for your warehouse which will distinctly demarcate the different regions assigned for different tasks and keep your employees safe from any unfortunate accidents.

However, no matter how great a layout you’ve established in your storehouse, if the people who actually work on the facility floor are not properly informed regarding these plans and organizations, hey will prove to be ineffective. Therefore, communicate regarding the improvements and changes you make to the layout of the floor to effectively increase the efficiency.

Accurate Forecasting

Both dealing with stockouts and handling surplus products can be majorly disruptive to the productivity of the storehouse and must be kept to a minimum. The only way to do this is by better aligning the demand with the supply by making accurate forecasts. While seasonal demand fluctuations are quite easy to predict, changes occurring due to various other unpredictable market conditions are a lot more complicated and troublesome. Adopting a Collaborative Planning Forecasting and Replenishment (CPFR) system for forecasting will significantly improve the quality and the accuracy of the demand signal, minimizing the possibility of stockouts and surplus, which leads to an increase in efficiency.

Better Product Tracking

Manual tracking which relies primarily on labour can be both inefficient and difficult to implement. Customers today require warehouses to keep them updated about the whereabouts of their products at all times and provide higher levels of order visibility than ever before. To meet such requirements, implement automated tracking systems that deliver higher levels of visibility at lower variable costs.

Leave a Reply

Your email address will not be published.