Top 10 strategies for efficient usage of warehouses
28 May, 2020
10 Strategies for Efficient usage of Warehouses Warehouses are an important aspect of the Logistics and Supply Chain. It is very essential to maintain a clean and efficient warehouse as it helps keep the business going efficiently. An effective and efficient design of warehouses comprises space and layout optimization and also includes racking and labelling of warehouses. All processes and decisions involved in optimizing warehouses must be following the goals of the business and should also increase profits and productivity. All processes must also support the decisions made to reduce expenses, optimize the space available and should also deliver effective support to all customers. The tips and guidelines given below are very essential to optimize warehouses and effectively use them. Plan the warehouse space Every part of the warehouse requires maintenance. We need to pay for electricity, land rent and other extra utilities too. Thus, every square foot of the warehouse is important and should be planned effectively. By doing this, we can plan our warehouse spaces in a more effective manner which enables us to create efficient routes for stocks. Thus, we can save on money and time. Moreover, if we plan properly, we will never run out of space whenever required. We can also provide more space for safety features like forklifts and other devices. Plan for future demands There is a natural tendency for demand to vary for each business. We need to plan well in advance. We need to stock the exact required levels of inventory to make sure that no space is wasted and there is no shortage of space. Also, it is very essential to ensure that stocks are kept and maintained at the exact optimal level for a specific period. Arrange the warehouse properly This aspect is very similar to effective warehouse planning. As we all know, a certain product will have a higher demand than the other. We must plan the warehouse keeping in mind all these restrictions. We must place all the commonly and frequently used goods at an accessible location. By doing this, we can reduce the loading and unloading times of goods with high demand. Usage of Bin Locations Bin locations are an easy and effective way to divide the warehouse into segments. It splits the warehouse as a map where all the various stocks are laid out. This tool helps to manage goods effectively as we can effectively place and locate products. Moreover, this makes the warehouse very easy to navigate just by using bin locations. Usage of labelling The stocks and piles in the warehouse area to be labelled effectively. The Stock Keeping Units (SKUs) are labelled with numbers which are very helpful to identify products. We can even use a barcode or even a QR code system which depends on the needs and size of the business. It eliminates the use of numbers and makes our job easier and more efficient. Cross-docking to be implemented It is a process in the Supply chain which reduces the storage time of stocks. It includes un-loading of goods from vehicles and also loading them onto trucks and other modes of transport. This effectively ensures the reduction of time taken and also a faster turnaround, essentially saving money and time. Safety standards More safety essentially means more efficiency. A safer warehouse increases efficiency. Proper pieces of training and courses must be provided regularly to all staff. If all staff know how to handle equipment safely and properly, the warehouse is run and maintained more efficiently and is managed better. All danger zones must be eliminated and safety protocol must be implemented. Reduce the number of containers Reducing the number of shipping containers is a critical step. It helps increase the productivity of staff. Reducing the number of containers of different sizes and capacities helps increase the speed at which staff and workers can work. When the choice is less, the time taken to choose also becomes less. This helps save the time consumed in various processes. Cycle counts All warehouses take in a single and a large inventory once a year. But instead, if we implement a counting method and system in which the inventory is counted one or more times per cycle, the inventory numbers are kept under control and helps reduce errors and also helps to find the missing stock. Control system for inventory Once the goods are placed at the desired location, it is very important to track them and keep records with a proper and efficient inventory control system. It helps manage the stock in hand, the location and movement of all goods within the warehouse. These tips are very essential in effectively managing the warehouse. Once implemented, we can expect better results which help reduce the expenses and also increase the profitability of any business.