Our warehouse management is substandard. Inventory is too high. Things get lost. We can’t find what we need when we need it. We know there are related issues. How do I fix it?
Thoughts of the Day: Think warehouse management because you can’t do it all. The right employees can make a huge difference. Set up procedures. Invest in tools. Consider farming out the warehouse function. Make time to learn about best practices in your industry.
Warehouse management operations oversight
Customers depend on vendors to get them what they need, when they need it, no excuses. Managing the volume, cost, and markup on materials that go to customers. They can impact profits and customer satisfaction.
Firstly, someone has to be involved in running the day-to-day operations of warehouse management. It shouldn’t be the owner who has bigger issues to solve. Including how best to handle inventory to meet customer needs as the company grows.
Moreover, reflect on who you have or should have in the warehouse. Here are some questions to evaluate warehouse personnel.
- Do they like keeping track of details?
- Have a high need to be right?
- Look at reports and compare reports to physical counts?
- Can they multitask?
- Have the communication skills to deal with vendors?
- Command the respect of co-workers?
- Do they have the strength and stamina to keep up with the workload?
- Willing to take charge and accept responsibility?
- Blow the whistle or ask for help if there’s a problem?
- Willing to embrace automation?
- Work extra hours if needed?
Planning, organizing, controlling warehouse management
Inventory management starts with calls for supplies. Log orders into a system. After delivery, verify that the vendors’ quotes match the bills you receive. Log specific inventory pieces out as they’re used and make sure they’re charged to the client who will benefit.
In addition, have supplies come to a central location. Make someone responsible for accepting delivery. And ensure everything is received as ordered and in good shape.
Keep control with a check-in/check-out system. Limit the number of people who can walk into the warehouse. Keep shelves neat and well labeled to help spot when inventory is low. Identify inventory to be reordered, and that builds up and needs to be moved out. Keep moving older inventory to the front of the warehouse. Put someone in charge of finding ways to use it up.
Likewise, warehouse management tools can reduce waste and days of goods on hand. Days that goods sit around tie up money that could be used elsewhere in the business. Waste costs more than 100 percent because of lost opportunity. Warehouse management can fix that.
Offers visibility into the business
There are good warehouse management tools on the market to track inventory. Scanners and barcoding save time and increase accuracy. GPS systems on pallets help track goods on and off trucks and at clients’ sites. Using iPads and truck stocking systems helps make inventory management in real-time.
If you’re not prepared to manage inventory, consider outsourcing. Some vendors will receive, store and later deliver the finished goods to your clients. Others will stock your trucks or ship via common carrier when you request it. Bulk centers can streamline processes and take advantage of staffing efficiencies. You still have to periodically audit to ensure they’re not wasting or losing items. If you have lots of goods coming in and going out, consider cross-docking to speed the turnaround — especially important when dealing with perishable items.
Whatever solution you choose, set goals. Reduce the time goods sit, cut down on waste and increase the ability to service customers by having exactly the right inventory all the time.
Turn to your industry association for ideas on best practices. Team up with companies larger than yours, who can show you what they’ve invested in. Hire experts to help you plan your warehouse for the future. Have a vision of where you want to go.
Looking for a good book? Try “Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse” by Gwynne Richards.
