If you simply work in a warehouse, then you know that there are a number of common issues that seem to pop up now and again. You think that the actions the managers take will solve the problem forever. However, deep down in your mind you know that’s not true. Those problems will continue to be problems.
Your warehouse is not the first or the last to experience these problems. Perhaps these tips will help you overcome them when they do occur.
Inventory Issues
Not all problems have roots in the warehouse itself. There are some circumstances that occur due to economics; weather issues; local, state or federal government regulations and more.
A major economic issue that warehouses all over the United States had to deal with was the Great Recession of 2008. One problem that spread during this time was simply running out of space.
There were many warehouses that actually increased their inventory because of slower sales. Many added new lines. Of course, there were problems.
First, all slots were already being used. Second, due to the recession employees were laid off. Because there were fewer hands on deck, it took more time to pick orders. Perhaps your warehouse manager tried to alleviate the problem by adding on more space. However, his efforts were impeded because the action would have been too costly and would have diverted money away from other needs.
So, what is this manager supposed to do to accommodate the new lines?
Some managers seek advice from consultants. They wonder if slow selling and dead merchandise is being stored in velocity appropriate locations. Let’s say that most of the items were stored a good distance away from the aisles. Let’s also say it was discovered that most of the slow-moving items were located near the head of aisles at eye or chest-level. While the fast-moving merchandise were at the back end of the aisles on the top portion of shelves.
The solution now becomes obvious.
First, identify dead items that still have value, and then sell them at clearance events or to surplus buyers. As more space becomes available, re-locate the fast-moving items to locations where those slow-moving items were stored. In addition, assign storage locations based on the velocity potential of the item.
Then there are problems due to a flaw in the manner the warehouse operates. For example, inventory builds up because there are no procedures to determine what is in stock. This leads to excess and obsolete inventory building up on the shelves. That means there is no space for new lines and unexpected shortages occur. Be aware that excessive inventory can adversely affect cash flow, create space issues, cause a rise of expenses to accommodate the overabundance of merchandise and result in insufficient customer service. However, this issue can be resolved simply by including an automated distribution system in your operations.
Picking Issues
It is fairly common to find warehouses using picking procedures that actually affect the speed of the process. For example, the picker passes the pick order ticket to the checker, who passes it to the stager, who passes it to the loader, and on and on. Utilize a system like barcodes and the problem of multiple touches is over.
Warehouses that utilize manual picking procedures discover that there is no common route taken to pick orders. This results in time lost in the warehouse’s operation. This problem disappears when efficient pick and put away routes are created and automated, thus decreasing wear and tear on equipment and your labor force.