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6 Warehouse Management Tips That Can Increase Productivity

6 Warehouse Management Tips That Can Increase Productivity

From receiving, storing to shipping, warehouse layout and flow will largely determine how well a business operates. Given the very importance of this process, here are tips to increase the speed and efficiency of work processes in the warehouse:

1. Re-evaluate the Warehouse Layout 

Warehouse layout Design is the main foundation of the process in the warehouse. Maximizing every position and place in the warehouse can increase efficiency.

Here are 3 key principles to keep in mind when planning (or updating) a warehouse layout:

  • Flow - means the uninterrupted movement of materials, people, and traffic within your building.
  • Accessibility - means that every product and all products on a pallet/shelf must be accessible to everyone, usually without the need to move one product to reach another.
  • Space - means the maximum warehouse space for storage, taking into account storage, stock, office, work area, empty pallet storage, battery charging, etc.

2. Use Shelves 

The use of shelves in warehouses is a method of storing inventory vertically, not horizontally, as in pallet racks. This is a cost-effective way to maximize warehouse space if you have a lot of inventory or if you have a small, limited warehouse. Vertical shelves also allow for more room for employee traffic, as well as more space for employee work areas.

3. Use ABC Analysis to Organize Warehouse

Inventory ABC inventory analysis is a method of sorting inventories into 3 categories according to how well they sell and how much they cost to store:

  • A - Bestselling items that don't take up all the space or warehouse costs (fast-moving)
  • B - Middle-class goods that are regularly sold but may cost more than goods on hand.
  • C - Goods Remaining inventory that accounts for the largest share of inventory costs with the least contribution to sales.

ABC inventory analysis is one way of applying the 80/20 Parade principle. Most of the profits usually come from about 20% of the total inventory that we have. 

After grouping the supplies into ABC categories, organize the pick and pack areas in a way that gives employees the easiest access to A SKU, then B SKU, and finally C SKU.

4. Keep Your Warehouse Clean

A dirty warehouse with poor air/humidity quality can cause chaos and can increase the risk of accidents and reduce productivity. In addition, a disorganized and dirty warehouse can cause inventory damage which of course can cause losses.

5. Use Product Labels

Employees in the warehouse do not always have to remember the location of the product and its specifications in the warehouse. Each SKU in stock must be clearly labeled for easy identification.

Keep labels consistent for each item and include all necessary information on each label, such as:

  • Product Name
  • SKU
  • Code Factory / ManufacturingCode
  • Color / Size

Also, consider using barcodes for a faster and easier scanning process.

6. Make Inventory Receiving Easy

Receiving inventory effectively is one of the main warehouse management tips because it is the defining stage for the entire inventory and warehouse process. If this process does not go well it will affect the next process.

Here are some ways to increase the effectiveness of the receiving process:

  • Optimize the receiving space by providing the right tools and sufficient space to allow employees to sort and store incoming supplies.
  • Keep the receiving room clean and organized by removing clutter and removing every appliance after using it.
  • Track inventory in real-time by implementing an Inventory System to reduce calculation errors, lost inventory, and wrong shipments.
  • Quality control by locating experienced employees
  • Unload received supplies quickly and safely using suitable machines (eg forklifts and conveyor belts) and following clear safety procedures.
  • Avoid sending the wrong goods to customers by verifying the items received based on SKU / Product Code, Batch, and so on.

That is an article about  6 Warehouse Management Tips That Can Increase Productivity. Hopefully this article can give some added value for you.


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