Prudent inventory and warehouse management is the hallmark of your organization’s supply chain efficiency. However, with the rising complexity of logistics and global supply chain operations, it has become mandatory to optimize your warehouse operations, which is no longer an optional activity. Hence, effective warehouse optimization occupies the top place in an organization’s supply chain management eco-system.
According to leading research, improper warehouse operations can cost companies up to $390,000 annually and waste 3,000 labor hours annually.
In this blog, we will explain the concept of warehouse optimization, the typical benefits you can enjoy, tips you can follow to improve your warehouse efficiency, and the role of mobile warehouse management solutions (WMS) in transforming your operations.
Warehouse optimization is defined as a strategic process to effectively enhance efficiency, productivity, and accuracy in your warehouse operations. From a macro perspective, it includes a lot of entities, right from optimum space utilization and inventory management to warehouse technology and improved workflows.
Its significance lies in the fact that warehouses require huge storage spaces – they act as a centralized hub for successfully managing critical operations such as receiving, storing, picking, packing, and shipping the goods. When you apply good optimization measures, you incur significant benefits like cost minimization, improved throughput, improved customer satisfaction, and healthy bottom lines. When your company fails to implement good warehouse optimization measures, you tend to fall behind the competition concerning agility, accuracy, and customer satisfaction.
Now that you understand what warehouse optimization is and why it is significant in today’s industrial environment, let’s briefly understand some of the top ten actionable tips as suggested by the industrial experts:
If you need the right results, you need to train the right employees! Hence, it is essential to invest in the right employee training programs to help your employees understand the criticality and the right processes of warehouse operations. Added to that, you can invest in good warehouse technologies like barcode scanning or RFID software to reduce mistakes while counting inventory or ensuring order fulfillment.
Spend time analyzing and assessing the demand trends of your products, so you can position high-frequency products closer to the packing stations. This way, you tend to minimize picking times, while improving overall efficiency.
Leverage the right route optimization solution to improve your transpiration processes. A route optimization software leverages GPS technology to suggest the right routes for your operators, so they minimize fuel and delivery times which in turn improves the overall performance.
Leverage advanced analytics tools to accurately forecast your product demand for effective decision-making. With accurate prediction, you tend to avoid stockouts and overstocking, which in turn helps in smooth operations during peak times.
Analyze historical data and leverage smart mobility solutions that let you effectively maximize the vehicle load capacity. This way, you tend to minimize transportation costs and associated risks.
Implement predictive appointment scheduling that lets you reduce wait times and optimize truck turnaround efficiency.
A deep lane racking system is one of the warehouse storage methods that optimizes space and efficiency by storing pallets in multiple depths within a single aisle. This is in contrast to storing each pallet in separate aisles. Since this is an efficient warehouse technique, consider implementing it for high-density storage. This way, you tend to maximize space utilization, while keeping a tab on your staffing levels.
Implement a good workforce management system that helps in analyzing the labor requirements; while helping you distribute the resources efficiently. This way, you minimize the overall costs, optimize productivity and in turn improve your bottom lines.
There’s a saying, “Cleanliness is next to Godliness”! This saying aptly applies in a warehouse environment. Enforce the highest hygiene standards to promote safety and efficiency in your warehouse environment. Follow a regular habit of decluttering the aisles, so the products are stored in the right way for easy access.
Invest in good warehouse management software (WMS) or a mobile WMS that offers a plethora of benefits like real-time data access, transparent inventory tracking, effective order management, route optimization, and analytics for effective data-driven decision-making.
A good mobile WMS like that offered by a supply chain expert like Propel Apps provides the right mix of features to take your warehouse efficiency to the next level. This solution integrates with your in-house ERP systems like Oracle or SAP to optimize your supply chain processes including picking, packing, and shipping. This solution is aimed to propel your supply chain efficiency to the next level while accentuating your organization’s journey toward rapid digital transformation.
In a nutshell, this solution offers real-time insights into inventory levels, order statuses, and operational metrics while facilitating effective communication across your teams.
Enjoy the highest ROI with the Industry’s new standard for supply chain automation by improving productivity and reducing the total cost of ownership.
Reduce inventory errors by 100% with seamless barcode scanning technology.
With Propel Apps’ auto-pilot solution, you need not worry about unreliability, performance issues, sync issues, skill gaps, or clunky RF-era legacy UX.
Stockouts and dead stock will be a thing of the past. Improve customer service and never lose a sale or a backorder.
Gain at least 1 hour of productivity per material handler per day while reducing the total operating costs of running Propel Apps’ platform by 60%. Save $150K per year by substituting expensive customizations with Propel’s FREE tools!
By leveraging the industry’s #1 platform for offline use cases, you can run 24x7 inventory management and manufacturing!
To know more about this solution and how it can optimize your warehouse and inventory operations, schedule a free demo with us.
Warehouse optimization is no longer an optional, nice-to-have technique but has become mandatory in today’s competitive environment. It’s an ongoing activity that requires meticulous planning and execution. By implementing the right tips as shared above, from leveraging automation to predictive analytics, you can revolutionize your warehouse into a powerhouse of efficiency and profitability.
Additionally, leveraging a mobile WMS will take your warehouse optimization to the next level of efficiency. Your workers will be more empowered to handle their warehouse tasks with ease while ensuring that the right products will reach the right customers at the right time. So, now is the time to optimize your warehouse with the right tools to stay ahead of your competitors.
