(Courtesy: EvansDist)
Business majors learn early on that an efficient operation leads to greater revenue and higher profits. This is true for any business including the warehouse trade.
Everyone knows that efficiency of operation cannot be achieved by accident. You need a plan. Here are some ideas.
· Prioritize SKUs. The popularity of an SKU may depend on the season. As an experienced warehouse manager you know which SKUs are popular in the fall, winter, spring, and summer. Re-arrange the SKUs according to seasonal changes putting the most popular in the most accessible location. Such a plan will reduce wasted travel time for order pickers.
· Use the most optimum picking method for your operation. Methods of picking include single order, multi-order, batch picking with a single picker, zone picking, etc. Analyze your current method to determine if it is ensuring optimum productivity. If not, determine what method does and execute it.
· Use software to arrange orders. Creating an order of picking can save a lot of time. You should use warehouse management software that organizes workflow and ensures the best performance.
· Locate the most popular SKUs in one location. Employ the 20-80 rule. Collect the 20 percent of SKUs that fill 80 percent of orders, put them in one specific area of the warehouse and create a zone that can handle a large amount of activity. You’ll discover that picking will be a lot more efficient.
· Use proper storage for slow moving and fast moving items. The slow moving goods go into bin shelving and the fast-moving stuff can use carton or pallet flow or some other suitable storage choice.
· Develop a “wheelhouse” area for your pickers. You can store your fastest-moving SKUs there for better productivity.
· Use only two or three types of standard shipping boxes. Fewer carton options means faster packing, better shipping costs, and reduced trash.
· Consider automating. Pickers experience a lot of wasted time carrying items or moving product around. Automation can limit that.
· Use newer equipment. They will run faster, break down less, and show employees that you are serious about the business and making their jobs easier.
· Know about technology alternatives. There are a plethora of technology options that ensure greater efficiency. For example there are bar codes, radio frequency, pick-to-label, pick-to-light, voice activation, etc. These gadgets can make picking faster resulting in enhanced productivity and accuracy.
· Motivate workers. One way to get pickers to work faster is to offer incentives.
· Don’t ignore the metrics. Do you know the benchmarks concerning productivity and cost on shipped orders, cost per box, what do errors cost, what do returns cost, etc.? Know the critical metrics so that you can create benchmarks to meet or exceed. This allows you to measure performance and initiate improvements.
· Make managers accountable for better efficiency. Better management affects costs, employee morale, and productivity.
· Don’t stop improving. Always assess, make plans, and set objectives. The process of improving is never-ending.
· Be flexible. Expand the warehouse as your business expands.