Warehouse optimization can be divided into two parts: process automation and physical automation.
While the former refers to the automation of manual processes such as data collection for inventory purposes, physical automation refers to theuse of computerized tools to assist in the movement of goods, as in the case of automated warehouses.
Our 4 “tips” to apply right away
Step one: realize that the warehouse needs an overhaul.
The next (and most important) step toward warehouse optimization is to embark on the right path that will lead to change.
No two warehouses are the same, with the same goods and the same issues, but there are methodologies for inventory management that can leapfrog internal processes, regardless of the size and type of material stored.
1. Understanding the speed of goods
The velocity of goods follows the rate of product sales.
In each warehouse, certain products move faster than others, by product type and/or in conjunction with marketing actions related to particular times of the year or promotions.
Therefore, the warehouse layout must allow easy movement of high-turnover, “fast” products. Therefore, alogistical analysis is needed to enable proper placement so as to decrease pick times and speed up deliveries.
One solution might be to place them in a dedicated space near the packaging area.
2. Reduce human error
People make mistakes, it’s inevitable. But when it happens in the warehouse, productivity drops. This is the fundamental reason why it is important to automate the handling of goods.
A good practice is to invest in an automatic labeling system and “brand” goods. But also shelves and aisles. Ideally, these labels should be easy to read even from a distance, and easily recognizable.
For it to be possible to identify them smoothly, the adoptable technology is QRCODEs, which more than other technologies allow them to be scanned even from a distance, avoiding confusion and errors.
3. Adopt a WMS
WMS stands for “warehouse management software.” It is a program whose purpose is to increase the productivity of all warehouse-related activities, while also introducing KPIs (Key Performance Indexes) to measure the effective optimization and utilization of the warehouse in terms of space and time.
A high-performing WMS allows management to keep inventory levels under control with real-time updated data through barcode reading, QRcodes, and through RFID technology, preventing supply problems.
This type of approach also leads corporate logistics toward a just-in-time approach of “lean manufacturing,” which as a first benefit has the lowering of storage costs.
4. The complete overview of the enterprise inventory and shipping system
WMS and ERP have never been closer
The warehouse is not a “stand-alone” entity, and it is crucial to consider it as part of the overall business processes.
Integration of a WMS with corporate ERP provides easy access to the information needed to make informed decisions.
Integrated business intelligence dashboards to monitor tasks, avoid blockages or slowdowns in delivery activities, and prevent production spikes by checking seasonal sales trends.
Being able to compare time periods with each other and analyze any problems that have occurred is an extremely effective methodology for learning from past mistakes, ensuring a great competitive advantage for the company’s future.
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