8 Best Practices To Improve Warehouse Operations In 2024
Guest blog from MHI Member Company DTG
In 2021, retail e-commerce sales amounted to approximately 5.2 trillion U.S. dollars worldwide. This figure is forecast to grow by 56 percent over the next few years, reaching about 8.1 trillion dollars by 2026.With increasing demands, you must ensure that the warehouse and distribution center management operations run as smoothly as possible for you to succeed.
If you are a business owner or manager, you know that warehouse management is one of the key aspects of your business. Businesses are constantly on the lookout for ways to improve productivity, increase revenues, reduce costs and deliver better products/services to customers. One way to achieve this is by optimizing warehouse operations. There are a variety of best practices to follow when managing your warehouse. Here are a few key best practices to improve your warehouse efficiency.
1. Improve Efficiency with Material Handling
MHI, the nation’s largest material handling, logistics and supply chain association states, “the movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption and disposal”. Material handling in the logistics industry is mainly used for warehouse management operations. Specifically, it refers to efforts to devise operations, from receiving and shipping, to storage and shipping of goods. Material handling systems can eliminate the need for manpower in the transportation of goods, and can even automate tasks from storage to sorting. The objective is to improve productivity, efficiency and quality.
To enhance the quality of logistics operations, it’s worth considering material handling systems and automated processes to improve overall warehouse management tasks. One of the most substantial cost savings opportunities in production is efficiently moving materials through a manufacturing site or warehouse. These technologies can offer significant improvements in efficiency, accuracy, and safety, enabling businesses to stay competitive in an increasingly challenging market.
2. Automate Data Collection
Modern warehouses should use integrated solutions that support automated data collection and transfer. Automation in warehouse management can help improve accuracy, reduce costs, and increase efficiency by streamlining the process associated with inbound and outbound shipping and inventory tracking. Tracking warehouse operations creates huge amounts of data and that data must be analyzed for logistics optimization. For example, optimizing shipping operations in line with customers’ preferences requires the collation of data from multiple sources, including customers, orders, drivers, trucks, and roads.
Manually collecting such data is tedious, time consuming and prone to human error. Automating data collections helps to eliminate human error, speeds up processes and enables data analysis and more accurate supply chain insights.
Armed with real-time data and accurate supply chain insights, companies achieve a higher percentage of on-time shipments to customers. 84% of consumers will not come back to shop from you after just one poor delivery experience.
3. Incorporate Advanced Shipping Notifications
Advanced Shipping Notification (ASN) is a feature of warehouse management systems (WMS) that allows the warehouse to receive advance notice of a shipment’s arrival. By providing advanced notification, ASN allows the warehouse to better plan for incoming shipments and reduce the risk of delays and lost shipments.
Regular shipping and receiving schedules aren’t always a guarantee because delays and interruptions are a reality that can change such schedules and cause problems across the warehouse. To more accurately schedule labor, inventory management and buy order procedures use electronic advance shipment alerts. Adjustments can be made to order fulfillment and transportation to ensure the required service time criteria are met and that the transport methods are optimized to cut expenses.
4. Optimize Operations with Dock Management Systems
Dock management systems enable you to schedule your loading and unloading operations effectively. Dock scheduling software is invaluable for warehouses that want to optimize their operations and improve efficiency. Streamlining your warehousing operations with a robust dock management system can facilitate communication with drivers, keeping them informed of their schedules and helping to avoid delays. By reducing overtime costs, increasing visibility and communication, improving safety, and boosting employee productivity, a sound dock management system is essential to ensure that your operations are running smoothly and ensure orders are being processed efficiently.
5. Streamline Inventory Tracking with Serial Numbers
Inventory serial number tracking assists monitor and control inventory levels, maximize warehouse space utilization, improve customer service, and reduce inventory cost. The objective is to make sure every item’s history is identifiable while it travels through the supply chain between end users.
The WMS may include barcode scanners, RFID readers, manual entry, and other inventory tracking technologies. The goal for most warehouses is to eliminate as many manual processes as possible. This is why supply chain managers and warehouse managers use barcode scanners. Inventory tracking systems should provide real-time visibility into inventory levels.
6. Apply the ABC Analysis Approach to Organize Your Warehouse
ABC analysis is an inventory management technique that allows you to identify the value of your inventory based on its popularity. It is used to identify items that will have the greatest impact on overall inventory cost and determine the best management strategies for those items.
In warehouse management, ABC analysis in inventory control can help you better manage the storage and movement of inventory in your warehouse. In addition to advancing your ability to develop an effective inventory control system and identify opportunities for cost savings. By performing an ABC analysis on your inventory and commodities, you discover which are the most sought-after, most valuable, and everything in between.
7. Prioritize Warehouse Safety
A forklift operator fails to notice a worker walking near their lift, overloaded rack tips over, or a worker winces in pain after trying to lift a heavy load – name your worst-case scenario and it’s only a few steps away from happening. Warehouse safety and security are essential aspects of warehouse operations that affect not only the well-being of your employees, but also the quality and timeliness of your customer service.
Safety in a warehouse setting is a multifaceted task. It involves comprehensive training, proper safety equipment, leveraging automation, routine equipment checks, and maintaining a clean environment. Additional strategies include regulating stack heights and promoting restful breaks. Implementing these best practices can significantly enhance warehouse safety, ensuring a secure and efficient work environment.
8. Maximize Warehouse Efficiency with DTG Mobile Warehouse Carts
Mobilizing solutions make warehouse workers’ jobs easier, safer, and more productive. DTG’s mobile warehouse carts can untether employees from fixed workstations, allowing them to safely access applications and data at the point of task and eliminate wasted movement.
Mobile computer carts deliver a range of benefits and fast ROI — if you choose the right option and configuration for your use case.
