Warehouse optimization is more about people and processes, than technicalities. Which is why, only by focusing on these two one can have a well-functioned warehouse, even before considering to sign up for a warehouse management tool?
- Out of Mind, “Not Sight”!
It takes time to develop Work processes, and therefore organizations into warehousing must emphasize on having these procedures well-documented. So the processes are known to all in the function. It is about making sure that employees get aware of what creates value for the costumers?
Well-documented KPI would avoid bottlenecks and dependency on one or several key employees, who have been at the warehouse for almost an eternity.
- The “80-20” Rule!
Lots can be gained from having goods located at correct location. Fetch the data and observe goods with highest frequency, large values or any another relevant parameter and check is they are located optimally? Warehouses may have performed these activities at one point in time but struggles the continuity and neglects maintaining it for a longer period.
The 80-20 rule helps!!
Often it is 20 percent of the goods that generate 80 percent of the turnover, which makes it essential to be optimally located.
- Clearing up!
It’s all about focusing on what’s important for business; else one would lose perspective on whether the warehouse is used optimally or not. When there is a mess, things get misplaced, and the consequences may be negative towards the efficiency.
So, begin with clearing up. It may seem insignificant, but there is a lot of substance in it.
- Equipment Maintenance
Most of the warehouse company, will be often seen with equipment put temporarily aside, because either they are broken or the one in reserve is being put to use instead. Complications rise, when the reserve equipment breaks down and all work stops. It is a question of putting maintenance into the budget, so it isn’t getting additionally granted.
- Visible management
Visible management is important. Aware warehouse managers ensure that everyone in system is aware and understands the importance of unpacking, registering and placing items in the dedicated areas. As failure to adhere the defined SOP could result into non completion of tasks and impacting efficiency.
- Decentralization of Authority
If continuous optimization is of utmost significance, so does decentralization of authority. In other words, one must clearly define responsibility of individuals involved for various activities happening under the roof of warehouse. This means, when a picker understands that there could be something that can be better optimized, he knows whom to approach.
- Order Overview
Which location is the order traveling to within the warehouse, are they being stacked to the warehouse’s end locations or will they be quickly being moved out again? This insight makes sure that resources are used efficiently. Having an overview of orders entering within a warehouse, would help in optimum utilization of resources.
- Depreciating Dead Stock
Recognize the depreciating slow-moving goods and getting rid of them sooner. These goods end up lying occupying warehouse space and lead to become inefficient, because of unoccupied storage space.
- Monitor KPI’s
Monitor the most significant key performance indicators. When the organization have clear focus on what creates value, one can begin rescheduling routines to accompany this for better productivity and increased efficiency coz of optimum resource utilization.
- Reduce Driving Time
Some warehouses are huge, that results into spending 25-30 percent of work time driving around the warehouse in picking goods. There exists a desperate need to optimize the driving time, so costs per order can be decreased.
- Agility & Trust
In today’s world of cut throat competition, maintaining trustworthiness and agility for businesses is of paramount need. Costumers are expecting information about delivery of their product, follow orders and receiving regular notifications. Since a lot of the costumer experience lies within the logistical assignments, it is very important to be able to give updated and trustworthy information as and when needed. This makes it necessary to have systems, which can send information, without having the need of a human touch.
- Planning & Communication
It is about planning and communicating the action points clearly to other within in the team to match expectations across. Begins with a short morning briefing every day focusing on the assignments to be picked followed by defining the roles and responsibilities for achieving the said task. Briefing helps in creating the feeling that this is a joint task we need to lift as a team.
AAJ Supply Chain Management
