No, not the weekly clean up. Or your daily housekeeping.

Proper warehouse optimisation involves a comprehensive audit of your current systems and how they can be adjusted to reduce losses, damage, and improve bottom line profits.

Few companies actually know what a poor performing supply chain is costing them. It’s easy to see the impact of events like an accident that leads to loss of goods; but the daily, seemingly smaller losses, can also contribute to a large reduction in end of year profits.

Any business that wants to compete in today’s market has to find a way to increase value without increasing costs. To optimise warehouse space, it’s the industry norm to champion automation as a catch-all solution e.g. automation can help:

• Ensure accurate record keeping and tracking if bar codes are installed on all items in the warehouse.
• Reduce errors and improve productivity if hands-free technology is used by pickers to accurately record the SKUs they move.
• Increase productivity, customer service, and increase operational control if a customised WMS is deployed.

Automation works, however it also costs thousands of pounds.

So, the question is: are you optimising your warehouse space?

A 2014 survey found that warehouse managers know their facilities aren’t optimal, but they blame a lack of time and strategies on not being able to fix it.

At Monarch Shelving, we advocate starting small. By making small changes to processes and tracking their impact over time, any warehouse can reduce the amount of inefficiencies they have. In this post, we’ll identify five strategies for optimising your warehouse on a budget.

Optimised Pick Routes.

The time spent on pick routes can almost always be halved. By taking the time to analyse the regular flow of products and planning a route, managers can usually give pickers a more efficient path. Another consideration is to determine whether the facility will implement batch picking or order picking. This helps in determining the type of equipment that will be installed, whether it be conveyors or racking.

SKUs can also be separated by size or category into separate pick zones to optimise the picking process to its full capacity and improve picker productivity.

Eliminate Redundant Processes.

Do you have accurate records of all accidents or inventory errors? If you don’t, what’s to stop them happening again? And again? By allowing the same errors to occur and cost you time and money, you are encouraging redundant processes. Evaluate your current processes and standard operations procedures with a view to streamlining workflow. This helps to boost productivity and optimise efficiency.

Another process that eats into warehouse productivity is the multiple touch points that SKUs go through as they travel through the warehouse. Eliminate all unnecessary employee contact from your workflow.

Combining Storage Methods.

Warehouse managers complain about the size of their facility, always wishing fr more space. However, analysis will show that they’re usually under-utilising the existing space. Take the debate regarding floor stacking vs. rack storage. There is no right or wrong. Both can be installed and used to store SKUs securely.

To combat under utilisation of pallet slot locations, the existing pallet racking space can be fitted with carton flow lanes to maximise the space. A combination set-up gives you more options and the flexibility to quickly adapt to a change in product lines carried.

Inventory Location.

When pickers don’t know the location of the inventory they’re supposed to assemble and ship, you end up with slow operations, increased costs, and disappointed customers. Having pickers spend hours looking for an item shows a lack of inventory oversight.

While a WMS eliminates this problem, it’s also an expensive solution. A cheaper and equally effective method is the use of an effective numbering and labelling system. By numbering and coding all pick locations in the warehouse, inventory will become easier to locate.

Adjust Existing Layout.

If you already have shelving installed, one way to avoid causing warehouse inefficiencies is to consider the stock you carry and the frequency of its flow. By reducing the aisle width of your warehouse, you can increase available space. Another way is to take advantage of any vertical space overhead. Rack elevation or adding new beams can be used to reclaim space.

A note of caution:

• Be sure to check for any potential constraints.
• Can the uprights support the weight of any extra beams or products?
• Can your fork lifts reach the elevated sections?

An optimised warehouse makes financial sense as you minimise returns and customer complaints thereby improving service levels. When employees can find products and materials faster, they’ll have more time to do the more important tasks. Well organised warehouses also help reduce accidents and subsequent compensation payouts.

While rolling out a large-scale refit may seem daunting and, let’s face it, expensive, smaller steps can be taken by tweaking current processes. If you choose to start this way, let Monarch Shelving help you optimise your warehouse storage capacity. Our range of new and refurbished shelves can be used to increase available space, our bins can be used to store smaller SKUs, our mezzanines can help your business create extra office space.

For any enquiry about our space saving solutions, contact us today.