It is true that most of the warehouses have a definite plan to operate efficiently however there is a chance that new opportunities might squeeze out the inefficiencies. With time, it is necessary to include a fresh approach to perform efficiently so as to launch process improvements that can make a positive impact on the bottom line and also prove fruitful for the customers.
With an objective of reducing wastage, here we have come up with 5 key suggestions to remove deficiencies that may negatively hamper profitability and productivity. Even implementation of one of it works to reduce warehouse inefficiency thereby resulting in improved asset management and performance in your organization.
5 Best Practices for Warehouse Management
Data Governance
The principles that drive data governance must be filled once and recalled autonomously as a quintessential part of several processes at one time. Look for an opportunity to evade the very need of reconciliations, clean up or any additional work that may be necessary to ensure the accuracy and the integrity of the maintained data. One important way to fulfil this objective is by focusing on the superior technology tools that can propagate:
- Relevant Audit Capabilities
- Standardization of Processes
- Adequate Data Integrity
These components are vital not just in a warehouse environment but also across the organization as an effort to straighten out the material throughout and inventory tracking within not just your immediate plant or warehouse but also across the extended supply chain.
An improved visibility in these operations will help in the betterment of the accuracy of the collected data and will also result in reduction of the possibility of clean up in the times to come. It has been seen and reported that on successful implication of the reporting tools that focus on data governance and advanced warehouse technology, a number of best performing organizations have reaped in substantial benefits when it comes to market competitiveness.
Inventory Storage Management Solutions
These days, almost every organization has included inventory and warehouse management in their core operations and supply chain management functions. One key objective of the supply chain management is to recuperate the inventory throughout by leveraging the importance of real time information that maybe related to the status of storage bin and inventory utilization.
All top notch standards demand accurate awareness of the inventory till the time it is in the warehouse. Therefore, effective warehouse design including storage systems that offer easy visibility to the WIP i.e. Work In Progress can be one important tool to achieve superior standards. Application of steel shelving can definitely prove helpful in this realm.
Vendor Compliance Programs
The vendor compliance program is a means to communicate to the vendor how exactly they would want their products to arrive. This program should include standard case quantities, specific labeling requirements and the advanced shipping notification standards. Further, every policy that you think may prove helpful in helping your factory perform more consistently should also be included in these programs. The standards for this program must be developed by way of collaborative effort that goes in the procurement and the operational personnel.
Organizational Culture and Diversity
You cannot overlook the language barriers that may come in between the warehouse management. To avoid this, the IWLA (International Warehouse Logistics Association) has come up with a possible solution which demands inclusion of multilingual software and protocols that would help the warehouse managers accept the diversity that maybe present in their workplace. Application of bar codes is one way to overcome the language barrier. So, when the WIP items or materials are scanned it is easy to track and manage them across the production process without worrying about the possibility of human error either in typing or in communication.
Cross-Docking
Every efficient logistic planning involves cross docking wherever possible. What is cross docking? It is the method of unloading the materials from an incoming vehicle and then loading these materials simultaneously on the outbound vehicles thereby avoiding the warehousing interval in between. Sounds similar to ‘just in time’ shipping? You got it right! Cross docking is one vital solution when the freshness of the product is a major concern. It started out seeing the need of the perishable goods to reach the market quickly. So, inclusion of this process in the standard can definitely lead to improvements in the distribution and manufacturing center.
Final Say
A lot of warehouses and the factories today are either operating inefficiently or are improperly designed. Sadly, there are some that are neglected altogether. So, with these five practices, there is a chance of improvement in the working of the warehouse. You can implement either one or two or all of these practices and see how the things begin to change at your organization.
Shiprocket is India’s first automated shipping software that aims reduce eCommerce shipping to its bare bones. We have taken a step forward in simplifying eCommerce for Indian merchants and saving their precious time and money.
