Increase Warehouse Operational Efficiency In 7 Steps

Operational Efficiency

Warehouse forms an integral link in the supply chain network, their operational efficiency thus becomes an important factor to consider in the short-term as well as long run. Warehouse operational efficiency metrics may range from internal KPIs, supplier KPIs as well as customer KPIs. For these key components, there is a continuous need to monitor, measure and analyze data so that the processes can be continuously improved. While doing so, at times, some very basic but effective steps are lost in the background, which can have a direct impact on the efficiency. We would like to share 7 key steps which can enhance warehouse operational efficiency –

  • Optimization & Management of Receiving Area – Dedicating a sufficient area for receiving stock helps in improving the accuracy and efficiency of activities such as; unloading, checking, unpacking or repackaging and quality control, it enables swift stock rotation and thus eradicating unforeseen inventory errors. Top it up with the responsibility of delegating tasks to trained and skilled resources which ensures efficient management of daily processes and improved handling of exceptions, this will result in efficiency and productivity enhancement.
  • Order Refinement & Process Layout – Overall efficiency is not about how quickly you rectify the mistakes but how much fewer mistakes you make. Experts recommend checking each order twice before final dispatch, such filters enhance operations as costs of re-processing orders are eliminated. Additionally, as soon as the order is received, it must be put away. If it’s delayed at pickup, there would be further delays as the process is carried out which would hit operational efficiency negatively.
  • Colour Codes & Descriptions – Implementation of suitable IT tools enable warehouse executives to add descriptions for even a single item. Brief descriptions do optimize order picking at a quicker pace and relative ease. The productivity gets better when descriptions are coupled with dedicated color codes for products/customers which lead to better order fulfillment.
  • Organize your Warehouse – Warehouse design specialists need to come up with designs which enable quick movement within the facilities and those which are easier to clean and maintain. Holisol’s experience in designing and developing a state of art facility leads to this conclusion that warehouse teams find it easier to maintain inventory, defective/returned goods when the warehouse space is cleaner and standardized. Also, cleaner warehouse helps in building co-workers’ morale by reflecting that their safety and hygiene is one of the priorities.
  • Signboards go a long way – By utilizing signboards in the facilities, it has been noticed that probability of errors in wrong order picking diminishes. Even the new members can pick orders in the first go, thereby increasing operational efficiency.
  • Resource Management – It’s important to anticipate future requirement, management must utilize learning & development activities which improve skill set and productivity of resources. At Holisol, we organize regular training of FC (Fulfilment Centres) supervisors, enabling them to acquire new skills and knowledge to enhance their efficiency, consequently personal and professional growth. We believe in engaging our co-workers by sharing business goals and values, which helps in aligning the performance and motivation to contribute to the success of business.
  • Cycle Count – Cycle count is a key component of inventory management where a certain quantity of inventory is counted on the periodic basis. Thus, it ensures inventory accuracy by reducing mixing of items as well as smooth stock rotation. Cycle count should be included in SOPs for all warehouses.

Experts at Holisol have analyzed that there is an overall increase in operational efficiency if we adhere to 7 simple but effective steps described above. In most of the cases, it has been observed that in pursuit of bigger goals, sometimes these fundamentals take a background seat. These steps if followed can lead the operations in right direction leading to the enhancement of operational efficiency.