To say that there is a unique way to manage a warehouse would be foolish - it depends a lot on the nature of the supply chain and the warehouse itself. However, some common principles can and should be applied. Conversely, of course, this also means that there are a number of ways in which businesses can go wrong.
To help you maintain control of your warehouse management and to ensure that your storage facilities do not generate undue supply chain costs, note the following eight common storage errors. If you can identify signs of one of these problems, prioritize them for corrective action.
If, on the other hand, your warehouse is already free of these problems, it is a good idea to note them anyway and to remain vigilant. Sometimes things can slide, especially during peak times.
NOT USING THE BEST PICKING STRATEGIES
There are many methods of picking - and not all of them are suitable for your business.
Zone picking, wave picking, batch picking, personal goods, the intertwining of tasks? Choosing the right method for your particular operation means that picking is done faster and more efficiently. And if you can maximize your agents' time, costs will be reduced. You won't have to pay employees to go further and longer than they need to.
Failing to Optimize Picking Paths
Another of the most common storage mistakes - ignoring the need to plan efficient pickup routes in your warehouse - will handicap your pickup rate. This, in turn, can impact supply chain cycle times and generate excessive labor costs due to suboptimal productivity.
Ideally, your warehouse agents should be able to complete each pick cycle at a location close to your warehouse shipping area. It's not always easy to create optimal picking routes, but it's definitely worth taking the time and effort to make sure they're as efficient as possible.
Lax safety procedures
With little surveillance, the warehouse can be a dangerous place full of potential safety hazards. The fast pace, heavy inventory and oversized shelving can be a recipe for disaster without proper supervision. Keeping your employees safe from injury should remain a priority. Whether it's continuous security coolers or regular pallet racking inspections, make warehouse security a priority.
Disorganized picking methods
A high and accurate withdrawal rate is essential to any successful warehouse. The sooner you can deliver goods to the door and into the hands of your customers, the better. Employees who spend exorbitant time walking through the warehouse looking for the product are sure to create lower overall drawdown rates and cost you more in the long run. At the very least, optimize routes and improve parts picking to increase your productivity and profitability.
Not prioritizing inventory reduction
The difference between hoarding and excess inventory largely depends on how often and how quickly you clean up the remaining inventory. The more unsold goods you have available, the less money you have to run your business. Never buy in bulk just to get a good price and know when it's time to purge stagnant inventory.
Clutter and disorganization
A disorganized warehouse is riddled with security risks. Meeting a forklift with a ball of packing tape or a pile of crates could have catastrophic consequences. Make sure the aisles are always clean and checked again at the end of each day. You can also assess your rack equipment to find ways to increase your overall storage capacity and stay organized.