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6 effective ways to improve warehouse management

Sep 06, 2021

We have discovered a phenomenon: in the daily warehouse management process, we always feel that some places are not so satisfactory, and we want to improve but lack a certain foothold. The emergence of this phenomenon, in essence, is that managers lack comprehensive awareness and comprehensive thinking, and they usually work too much into fragmented detail management.

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This article will recommend 6 observation points, or the goal of improving management, to help everyone look at the ways of warehouse improvement from a higher perspective, and have an immediate effect.

1: Warehouse operation efficiency

Better deployment of SKU

Frequently check the SKU entry and exit speed (frequency), and relocate the SKU according to the speed (entry and exit frequency). Ensure that SKUs with high frequency of entry and exit are kept in a convenient and ergonomic position (waist height, end of aisle). Store frequently picked SKUs as kits.

Strengthen the efficiency of man-machine integration

Calculate labor costs to find the best cost structure in operations. Do you often place more objects in the picking system? The investment in the automatic storage system can reduce the number of people you need in the picking operation, so that employees can be redistributed to other places.

Bulk picking, if possible

Bulk picking allows one picker to visit the SKU location once to fulfill multiple orders or a batch of orders at the same time. This sorting strategy reduces the travel time and the number of times to the same picking location, thereby improving picking productivity.

Standard line

Create a clear path through sequence selection and shorten walking time. Sequential picking does not require pickers to cross vertically or horizontally, or visit the same storage location multiple times to complete the order. Reducing this repetitive work can increase productivity and eliminate unnecessary walking.

Replenishment

Replenishment depends mainly on whether the inventory of the goods in the picking area meets the demand, so when to replenish the goods depends on the inventory in the picking area, so as to avoid the occurrence of picking and finding that the picking area is insufficient and need to be replenished. This will affect the entire picking operation. Generally, three methods are available: batch replenishment, regular replenishment or random replenishment.

Flexible arrangement of your employees: Facing seasonal demand

Operations managed by a small number of employees, and effective deployment of employees or reserve employees during peak hours. This will help you plan ahead for expected seasonal demand when you know you need it, instead of finding people at peak times.

2: Inventory management

Group inventory

Inventory is grouped by SKU shipment frequency or scale, and SKU is matched with the correct storage method. Maybe you have some bulky goods that need to be moved quickly, and those may belong to the shelves in the front picking area. And your small and medium-sized goods may belong to the automatic storage area. Matching your SKU with the correct storage method will increase your warehouse efficiency.

Prevent shortage

Set a minimum quantity of safety stock to prevent shortage of goods, and automatically report goods or purchases. If you set a minimum reorder quantity, you can regularly track inventory levels and automatically receive new products when needed.

Learn to refuse

Develop a set of clear and documented procedures for the receipt and return of new products to avoid unplanned and sudden large batches of returns resulting in accumulation of on-site chaos and warehouse explosions.

Frequent statistics

Regularly track the inventory quantity, whether it is calculated on a weekly, monthly, or quarterly basis, it will save a lot of trouble.

making plans

When it comes to your facility investment, don't be casual! Become your warehouse planner, planning flexibility and scalability. It may make sense to invest on the shelf today, but 3-5 years from now, you may find that your product line is changing or downscaling due to new lean processes. Are all shelves still necessary? Make long-term plans and goals to adapt to future business changes.

3: Warehouse organization

Understand product information

Rearrange the shelves to reduce the space between each shelf and store similar products on the same shelf to create more storage space. Please consider using VLM for maximum storage density to automatically adjust to the changing product mix.

Reasonable flow

Check the facility process to ensure that it flows in one direction from receiving, to inventory, from picking to shipping-if you don't want employees to see through from one area to another, once you find a suitable process, please standardize it.

Back to the essence of lean

Lean your inventory to comply with JIT practices. Keep only the essentials on site to reduce the backlog. This will enable your warehouse to operate efficiently and provide the services customers expect.

Tidy up the lane

Didi, dudu... make way for forklifts, trailers, etc. Design enough passage space for your facility so that the handling tools can travel easily. But don't give them too much space to waste storage or work space. Find the "just right" spacing, effective but not wasteful.

Just right

Eliminate all unsafe factors that affect the passage, so that employees can easily access the SKU and prevent injuries. Ensure quick access to goods and don’t let employees waste time looking for ladders everywhere.

Calculate the cost of space

Are you making the most of your every square foot? Consider implementing high-density dynamic storage and picking technology to integrate storage areas to improve space utilization efficiency, expand your footprint without physical expansion, and leave enough space for your activities?

Love clean and tidy

Keep all work spaces clean and free from clutter to prevent inventory damage and potential loss of goods.

4: Warehouse security

Cherish employees, like family

Employees are the most precious asset, so giving them a good working environment helps to retain them; communicate with them frequently to ensure that they understand their roles; often praise and encourage them to stimulate their potential. At the same time, frequent communication helps you determine whether someone is more suitable for different positions or positions.

Logo, logo, logo

Proper signs and labels can keep your warehouse organized. To guide people and stay organized, make sure your sign is clear and easy to understand. In addition, please consider publishing floor maps to provide visitors with information. This can help you avoid accidents.

Bundled SKU

Store the SKUs that are often picked together in the same location to reduce the picker's itinerary and picking time. Improve the efficiency of staff picking operations.

Don't pay for non-compliance

Provide all employees with appropriate training, training or demonstration by professional, skilled or certified personnel to help employees correct working attitudes and standardize operations, thereby preventing personal injury caused by safety violations.

"Slimming and reducing fat"

Check your management process or work flow to determine what can be improved. Minimize wasteful steps, and redistribute resources, employees, and steps to improve management and operational efficiency.

5: Management software

Paperless

No one wants to manage paper checklists anymore-tiring, old-fashioned and prone to error and loss. System management realizes real-time query and export of various information reports, which is more convenient and efficient.

Scan code

Bar codes are also efficiency codes! Using barcodes, the scanner can quickly and accurately identify/prompt. In the picking process, simple scanning is used to confirm the goods to ensure the accuracy of the order. Efficient!

tags, tags, tags!

Integrating label printers into bags and label parts can improve inventory and order accuracy. Parts can be marked with part number, batch number, serial number, batch number-all numbers. Consider bagging and marking parts to track inventory throughout the life cycle and make returns easier.

Do you have a serial number?

In the process of receiving, storing and picking, track high-priced or sensitive goods by serial number, batch and batch number. As in the case of a recall, it is important to know the serial number, batch and batch number in each order.

Have you ever played Tetris?

As the business continues to grow and the products expand, the inventory will continue to expand. By changing the inventory configuration, achieving maximum density in each storage unit is critical.

6: Warehouse maintenance

Facility maintenance

It is in your best interest to adopt the facility maintenance plan recommended by the supplier. Regularly maintain your equipment, software system, etc., to maintain normal working conditions, thereby reducing or eliminating unexpected failures. Usually, it is worthwhile to extend the warranty or purchase value-added services.

Keep spare parts

Technology and equipment failures are everyone's nightmare. Please keep spare parts in case a malfunction causes the loss of important files or data.


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