Since it is a good time to measure the activity of the first half year, it would be a good idea to analyze the warehouse operations and the costs they generate and find a way to turn these costs into profit.
A quick look can give you valuable insights into the issues that can be solved either with the help of technology or with the help of a logistics consultant.
Update your processes
In recent years, consumer requirements have changed, leading to changes across the supply chain, which has also changed quite a bit. You should, therefore, examine, test and adjust your warehouse processes to meet your expectations. Updating and defining standard processes will also help you in training new members in the warehouse operator team, which can prove to be of great help, especially in times when there is a growing need for seasonal workers.
Reduce your inventory
Whether you run a business with a distribution center or a warehouse, excessive inventory can be a waste of your company’s profitability. Excess inventory is a common problem for distributors because they tend to make large purchases of a single product to get bulk cuts. Storing an inventory surplus is one of the most common storage mistakes.
Why is it important to reduce inventory? Stocks are money. As long as you keep large stocks in the warehouse, it means you have money blocked. One way to reduce excess inventory is to have larger orders delivered in smaller lots. Take advantage of this time to evaluate the warehouse structure and find ways to optimize space usage and warehouse productivity so that every square meter of the warehouse is best used.
Measure labor costs
Labor costs are usually the highest cost in warehousing and may represent up to 50% of the total cost of operation. While some companies are trying to manually track workforce costs with spreadsheets and time cards, these methods do not show you in real time if operators understand and do the job properly, and therefore do not give you a clear perspective on their effectiveness .
Using a warehouse management system allows you to identify workloads that can be corrected or individuals to be trained. The information gathered helps you identify each operator individually and each operation with the lead time. The WMS system allows you to get a clearer picture of the workload and resources you receive so you can make sure you work smart to maximize profitability.
These capabilities to optimize productivity and reduce costs will provide you with a valuable and serious competitive advantage.
Ensure adequate training
Ok, you have the tools to manage the warehouse, but do I know the operators to use them properly?
Just because most people now use smart phones does not mean they know how to properly use a barcode reader, a handheld device or a tablet. Not everyone knows how to use the technology we provide, and from our experience we have noticed that many are afraid to say they do not know or ask questions.
As logistics software vendors, we offer specialized training for our solutions, but we also need your help to ensure the success of these training sessions by promoting the idea among employees that technology improves our lives and makes work easier.
Remove obsolete inventory
Each square meter in the warehouse can generate revenue if used appropriately. When stocks remain stuck and do not move for a long time, they prevent you from using that storage space for money-generating stocks. Spatial use in warehouses and distribution centers is essential for generating revenue and producing positive performance measures for the workforce.
Running a stock report can give you the information you need to make the best decision about outdated stocks.
