We’ve noticed a marked increase in demand here at the Logistics Bureau for assistance in boosting warehouse performance.
We outline some of the main issues we’re addressing in warehouse management.
Additionally, we provide straightforward warehouse solutions and highlight symptoms of poor warehouse performance to be mindful of.
Feel free to watch the video below for actionable steps to elevate your warehouse performance.
Analyzing Warehouse Performance Challenges
Over the past couple of years, we’ve tackled numerous warehouse performance issues. Today, I’ll delve into the causes, symptoms, and solutions we’ve been implementing.
Identifying the Issues
Space Constraints: Many clients approach us with concerns about running out of warehouse space. I recently saw one of the fullest warehouses ever, surpassing even a record in Malaysia at 115% capacity. Operating near full capacity, typically 85-95%, restricts operational efficiency due to reduced maneuverability and space for essential warehouse processes.
Performance Concerns: Accuracy in picking and inventory management remains critical. Issues like slow-moving or obsolete stock (slobex) can significantly impact operational efficiency. Effective inventory management, including timely removal of slow-moving items, is crucial for maintaining optimal warehouse operations.
Rising Costs: Increasing operational costs are another common concern. Changes in order profiles or product lines can unexpectedly inflate expenses, making it essential to regularly review and optimize warehouse operations to control costs.
Proposing Solutions
Optimizing Layout: Simple adjustments in warehouse layout can yield significant improvements. For instance, narrowing aisles to accommodate more storage without expanding the warehouse footprint has helped clients increase capacity by up to 30% in some cases.
Refining Processes: Streamlining processes such as adopting goods-to-person systems and conducting ABC inventory analyses can enhance efficiency and reduce costs over time. It’s essential to evaluate technology investments carefully to ensure they provide a solid return on investment.
Implementing Slotting Strategies: Utilizing slotting techniques to organize storage effectively can minimize picker travel distances, significantly boosting productivity. Strategic placement of frequently accessed items near dispatch areas can streamline operations.
Recognizing Symptoms
Performance Metrics: Watch for declining picking rates, cluttered aisles indicating space constraints, or delays in stock put-away. These are signs that improvements in warehouse operations are needed to maintain efficiency and control costs.
For more detailed insights and practical tips on optimizing your warehouse performance, watch the full video above.
Related articles on this topic have appeared throughout our website, check them out:
- Warehouse Product Slotting: The Ultimate Guide
- KPIs for Your Warehouse: How to Choose and Use Them
- Planning a Warehouse Network and Design: Key Factors to Consider
- 10 Proven Principles for Best Warehouse Design and Operation
- Improve your Warehouse Productivity Through Product Slotting
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated March 06, 2024, under the title “Warehouse FAILS – Common Warehouse Management Problems and Solutions“