One of the biggest challenges faced by most organizations is warehouse management. Many businesses no matter small or big, suffer a tremendous amount of losses dues to mismanagement in warehouse operations. It becomes difficult for them to keep up with the latest trends due to the progressive changes being made to the industry by advancement in the technology. Following are 9 of the best practices that can be implemented today to reduce the costs, improve customer satisfaction and increase the warehouse operations efficiency.
- Computerize your data.
Dealing with human errors while moving and tracking thousands of products at a time is unsurprisingly common. This usually happens when you enter numbers manually into the system. To reduce those errors and cut down on time, one should utilize automate systems like RFID tags and barcode scanners. This increases productivity and accuracy.
- Update inventory information
Any step in the warehouse process which cannot be tracked or recorded as a transaction should be eliminated. One should always maintain the data of on-going processes in the warehouse. From receiving the products to sending products out for the delivery, everything should be tracked.
- Data Synchronization
Syncing data improve the visibility for warehouse operations. This process helps in maintaining coordination with the supplier and warehouse, keeping them on the same page. This process reduces conflicts and is very cost effective.
- Do cycle counts
Cycle count is the process through which the inventory balances are checked and kept correct. It also works as quality assurance test. Through cycle counts it becomes easier to find and correct the errors within inventory.
- Don’t ignore the warning signs
The best and the easiest way to identify wrong or extra inventory is by looking for the dust settled on the product in storage. If you notice more than half an inch of dust settled on the product it is probably a sign of outdated inventory. Report the obsolete inventory as soon as possible to the concerned department
- Keep in mind the safety measures
Make the warehouse safety a top priority. Accidents can happen anywhere at any time and can cause massive delays. Thus to avoid any unexpected incidence, the warehouse area should be equipped with the safety measures.
- Do an ABC analysis
ABC analysis is a method that helps you divide a subject into 3 categories. Category A represents the most valuable products which contribute heavily to your overall revenue. Category B represents the middle products with potentiality and C represents those products that produce less revenue. Now with this analysis you can prioritize your inventory on the basis of value.
- Utilize the space
Instead of stuffing the inventory all over the warehouse, utilizing and organizing the space with proper lifts and shelves is the best practice to keep the warehouse clean and organized. Instead of only using floor, one should utilize every possible space that means from floor to ceiling too. Pallet racking system is one of the best and the most common storage solution.
- Train your staff
Make sure all of your staff is welltrained and performs tasks perfectly for which they are hired. Communication plays an important role in organizing and maintaining the warehouse better. Hence, it is important to have coordination and healthy relationship between the staff and the managers.
Keeping in mind the above-mentioned warehouse management practices you can expand your business exponentially.