Increased globalisation, improved transport services, industry and government regulations, chasing sustainability programs are all factors that affect the way distribution centres do business.
While some of these factors are favourable and can help increase the bottom line, others happen to erode away at the profit margins.
An industry report reported that many warehouses lose up to 3,000 hours a year due to workforce and warehouse inefficiencies. Add this to the 30% of warehouse managers that admit that they haven’t conducted a review of their processes in one year, and you begin to see where inefficiencies can cause loss.
Proper management of the inventory is one area where cost savings can be easily made. Automating processes, better space utilisation and proper scheduling tasks can clearly help. This is best done via software using a warehouse management system to optimise inventory control. An efficient inventory management software can tackle even the largest warehouses (Amazon anyone?), by using a combination of tracking RFIDs, bar-coding, using just-in-time reporting etc. Handheld consoles, tablets and custom apps for phones can be coded to provide needed information, within seconds. Improving picking accuracy, a better workflow and proper inventory rotation can make warehouses more efficient.
As warehouses are the last link in the modern supply chain, maintaining a structured workflow can lead to improved efficiency and increase profits. The most common problems experienced in warehouses across the UK include:
- Optimum Inventory Location.
Inefficiencies that that slow down operations and increase costs, can be due to a lack of inventory oversight. As travel time can account for 50% of order picking hours, imagine the time it takes for a picker to move between locations at two ends of the warehouse. This ultimately slows down the loading process and creates avoidable time wastage.
- Accuracy of Inventory.
Recording inaccurate figures is easy when you still do inventory control manually. This, in turn, can lead to unnecessary build up of stock, loss of cash flow, warehouse space issues etc. Using automation to maintain accurate counts through the use of bar code scanners and RFID tags is advised in modern distribution centres.
- Streamlining processes.
Automating processes helps reduce redundant processes that can affect workflow. You can also develop processes that help establish accountability. From safety campaigns, to weekly meetings, ensure that the workforce buy into the core processes need to run the warehouse.
- Maximisation of Warehouse Layout.
Warehouse space constraints are common causes of inefficiencies. If storage systems are not properly assigned and utilized, the amount of space ‘wasted’ is increased. Warehouses can choose between cantilever pallet racks, boxes, cube rack solutions etc., depending on the type of goods handled, the right storage solutions must be utilised.
- Improving Picking Optimisation.
Automating the picking process by optimising the workflow and the equipment used, can shave hours off the time spent on moving across the warehouse. Mobile workstations with wireless capabilities, using walkie pallet trucks that can carry multiple pallets can all help reduce foot traffic through the warehouse.
- Avoiding over-engineering.
In a bid to get more done, we advise the use of automation where necessary. Some managers use this as an opportunity to deploy complex technology solutions. This can ultimately have the opposite effect if the existing workforce is poorly trained, and lead to high levels of warehouse inefficiency.
Monarch Shelving Limited is a supplier of all types of pallet racking to the Greater Manchester area.
Our experienced staff will help you figure out the best racking configuration for reducing inefficiencies. Visit our showrooms today and choose from our broad range of pallet racking and other racking accessories.
