Warehouse Management: What Defines a Well-Run Warehouse?

July 18, 2019

Since the warehouse stores the inventory of a company, it should operate like a highly tuned race car and not an old jalopy. We state this fact because the inventory is the lifeblood of a distribution business. When a company poorly manages its inventory, it loses money. On the other hand, a business can become super successful by constantly improving its warehouse procedures for receiving, storing, tracking and shipping its goods. We explain what defines a well-run warehouse in the following to help you analyse your own practices.

The Use of an Accurate Warehouse Management System

Be certain that the warehouse management system or WMS you are using is highly accurate. Otherwise, you are just inputting garbage and receiving garbage back from the system. Also, you should be turning over your inventory 6 to 8+ times during the year for optimal results monetarily.

A Well-Run Warehouse Should Be Lean to Operate Smoothly

To ensure that your warehouse operates smoothly and efficiently, it needs to be lean, regardless of the type of goods you deal with each workday. The way to accomplish this leanness is to use the practices of Kaizen, Kaisen Blitz for Continuous Improvement, 5S, Lean Six Sigma and Kanban pull systems.

SKUs Need Proper, Efficient Storage

Storing SKUs correctly is crucial to efficient storage and inventory management. You should consider the following to devise the right storage plan for SKUs:

• Physical size of each product
• Frequency of picking of each SKU
• Use your available storage as effectively as possible
• Implement safety procedures, if necessary, for hazardous goods to prevent injury to employees
• Any other procedures that lead to efficient handling of SKUs

Employees Should Be Able to Perform Picking and Storage Processes in a Timely Fashion

Processes for storage and picking need to require the least amount of time possible to perform effectively and accurately. This is just good time management.

An Orderly Warehouse Operates More Efficiently

Keeping the warehouse clean and orderly is paramount for it to run well day after day. Employees cannot be fully productive if they are forced to work in a cluttered, dirty environment.

Well-Run Warehouses Observe All Mandatory Safety Practices

One last detail that we will cover is that for a warehouse to run well and efficiently; it must obey all the mandatory safety practices pertaining to its operation. If you have any doubts about this with your own warehouse, revamp your safety practices.

Turn to Challenge Packaging and Warehousing Solutions to learn additional facts about what defines a well-run warehouse. Warehousing is our business, and we provide third-party services to help you with your distribution needs. Our expertise in this area can assist on many levels.

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Vic 3026

Telephone: (03) 83609736
Fax: (03) 83609738
Email: info@cpacks.com.au

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