Talking about the holidays in the middle of August may sound a little loopy, but it really isn’t. Yes, Christmas isn’t for another 133 days, but as a warehouse manager, this is the best time to prepare for the end-of-year holiday rush. Peak season doesn’t start the week before Christmas, it actually starts less than 80 days from now.
With summer on its way out and the weather slowly turning cooler, you can tell Halloween is just around the corner. Wholesalers and retailers are also gearing up with their offerings.
Is your Warehouse ready?
The Halloween shopping period signals the beginning of the end-of-year shopping season. And to be prepared for it, warehouse managers are advised to start examining their facilities.
Whether you are a distribution centre or a producer/supplier, you must analyse your facility now to ensure you are fit for peak. If you aren’t, the only emails you’ll get are those from dissatisfied customers.
Common complaints during peak include:
- Managers complain as they have to hire extra staff, but they can work with the same number of staff if the warehouse is optimised.
- Retailers and e-commerce merchant flooding the warehouse with stock, because they over-estimated their requirements.
A thorough analysis of your current processes is required to get ready for peak. Start by:
- Evaluating Current Distances: How far away is the conveyor from the receiving section? How far does a forklift have to drive to pick pallets from storage? Can the distances be shortened? Knowing these distances will help with creating an efficient floor layout.
- Evaluate Condition of Existing Equipment: How was the last peak period for your business? Did you fulfil orders on time and within budget? Have there been any equipment upgrades since then? Are you still handling the same sized SKUs?
- Examine your records from last year and see what has changed. You just might need to dismantle and sell the selective racking and invest in a full mezzanine.
- While you should already have regular maintenance checks in place, this is another opportunity to examine your material handling equipment for any damage.
- Assess your Current picking process – If an alphabetical system of storage worked when you had a smaller range of SKUs, re-assess to make sure it is still fit for purpose. Do you carry any fast-selling items? You can move these closer to the pickers to reduce the walking distance covered.
- This may be the best time to consider the use of automation. Even if you don’t install a full AS/RS, consider a WMS. The initial cost is quickly recouped via the increased level of accuracy, reduced labour costs and a greater efficiency.
Examining all this now, can help you with the decisions that create a more efficient business. The analysis can help you figure out the optimal location for everything in the facility, from storage to workers. With the impending arrival of peak, now is the time to prepare your business to do better than last year.
At Monarch Limited, we don’t want you to simply survive this peak period. With the right equipment in place, you can reap huge profits this peak period. Whether it’s to sell the racking you dismantle or to buy new ones, contact us today.
