When improperly handled, warehousing can hurt your bottom line without you even realising it. Overstocking slow-moving items, receiving faulty merchandise, or damaging goods while in storage are just a few of the inefficiencies that you have to eradicate to keep your business from being drained of its valuable resources. Here are some of the ways you can improve the performance of your warehouse:
Invest in new equipment and technology
One tool definitely worth considering is the radio frequency identification (RFID), which works the same way as a barcode in tagging goods. According to a study done by the University of Arkansas, the RFID has the potential to improve warehouse efficiency by as much as 27% in just three months.
You would also do well to invest in a stillage cage, says Containit Solutions. Made from metal and generally customizable, stillage cages reduce the time it takes to move goods around. You can opt for a galvanized finish for even more durability.
Make sure your inventory is accurate
You don’t have to count and reconcile every day particularly if you have a warehouse management system (WMS) in place that makes it easy to track the items coming in and going out. What you need is a strictly implemented procedure that guarantees accuracy. Your system should identify fast-moving items and easy-to-pilfer goods.
Focus on the categories where your accuracy tends to be the lowest historically. Decide on a cycle count, a method in which a specific subset of your inventory is consistently checked on a scheduled date. You can either do it by comparing sheet-to-floor or floor-to-sheet. The goal is to make sure your physical inventory matches the figures indicated in your WMS.
Resist the urge to hoard
It’s best to keep your inventory lean, which means store only what you need and nothing else. When it comes to supply chain management, time, effort and space are all costs. If you have more items than what you need, your overhead expenses will balloon in no time.
As a final tip, teach your employees the importance of “5S,” which stands for Sort, Set in order, Shine, Standardize, and Sustain. The competence and dedication of your team in combination with sound procedures and smart tools will work wonders in reviving the performance of your warehouse.