5 Ways to Optimize Warehouse Efficiency
This blog post was written by our partners at Arka. For more information on enhancing your brand experience with Arka’s AI packaging solutions, visit www.arka.com.
Businesses often do not understand what warehouse efficiency exactly means. Many business owners would simply be happy if all the products were in place, on time. However, to achieve warehouse efficiency, your goals should be to boost the productivity of every warehouse worker, improve the results of all operations, and save time and money.
We are amazed by how the Warehousing Education and Research Council (WERC) defined all the metrics businesses should have when optimizing warehouse efficiency. These five metrics are:
- Inventory count accuracy by location
- Order picking accuracy (expressed in percentages of total orders)
- Warehouse capacity used on average
- Peak warehouse capacity used
- Timely Shipments
We can’t agree more that these are things that businesses should focus on. The question you now probably have is – how can I optimize my warehouse efficiency. We recommend these 5 methods to achieve your goals!
1. Choose WMS
Source: https://www.freepik.com/free-vector/warehouse-interior-concept-illustration_38321944.htm#query=warehouse&from_query=wms&position=1&from_view=search&track=sph
Is your warehouse management system optimized to your business requirements? This system allows all businesses to track the inventory they work with and optimize the storage space. They will also have the chance to improve order fulfillment times, which is one of the main issues that business owners are dealing with.
Well, here comes the moment when different packaging manufacturers and companies can help you do things better! For example, one of the business’s options is to connect Arka to your WMS and determine the packaging auto-replenish rules for all the warehouses. Thanks to this and other companies’ services, businesses will not have to check the inventory of all packing materials manually. Instead, they will get the necessary assistance or monitoring tasks as well as reorders.
Keeping up with technology is essential for your business’s success. If you do not follow the latest trends, be sure your competitors will. With the assistance you can get from packaging companies, be sure you will always be a step ahead of others.
2. Pick Containers Wisely
You won’t manage to house all your products if the containers you use are not adequate. That’s why it is essential to research the market and find the options that fit best without wasting space. Also, you must ensure you are meeting all the regulations, which can be rigorous for certain industries, especially those that are related to food, drinks, and medicine.
3. Establish a Standard Workflow
Businesses must not neglect the importance of any activity related to packaging and warehousing. You must create a system that functions from the receiving of inventory to its shipment. Without a good workflow, employees will be unorganized, which will significantly reduce the productivity in your warehouse.
But, the system itself won’t mean much if it is not adapted to the needs and capabilities of the workers. Our recommendation is to involve them in the planning process and ask how they would like their workday to look. After establishing a workflow standard, you must properly explain it to every individual in the warehouse.
Will all the workers manage to meet the standards all the time? No! Many factors can influence their productivity. Some workers have more experience, others need time to adapt, etc. That’s why it’s important to keep your employees motivated. Reward and show appreciation for their hard work. When the work doesn’t quite meet standards, show understanding and try to help them become better at what they are doing.
4. Ensure Safety for Everyone
Warehouse injuries are a serious and frequent problem. Believe it or not, each year, around 20,000 workers are injured in forklift accidents. Of course, these injuries are not always fatal, but working in a warehouse is risky.
The safety of every individual must be the first priority of every business. When an accident happens, be a true leader and investigate why such a thing has happened. Find all the hidden hazards in the warehouse, fix them, and train your employees on how to remain safe.
5. Invest in Automation
The last tip we have for you, but not the least, is to get automated. Adding automation will certainly not be cheap and you will have to retrain your inexperienced employees, however, you will manage to save money and ensure a higher level of productivity in the long run. All the time and money you invest will pay off!
Conclusion
When you look closer, the motivation and productivity of employees and the innovative tools you use will help you optimize warehouse efficiency. By focusing on these two things you will reach your goal and ensure a productive workflow within your warehouse. Are you ready to make changes?
