How to Implement a Warehouse Management System
A successful warehouse manager understands that all operations in a warehouse can go wrong. This is why workflows, processes, and protocols are essential for a smooth functioning warehouse. A good warehouse management system should let each team member know what their role is and what to do. Then they can make adjustments as necessary. When it comes to implementing workflows, these systems are the best tools for managing a warehouse. Here are some tips to make your warehouse management system work for you.
Planning your warehouse layout depends on your product volume. When placing your storage racks, high demand products should be kept near primary aisles to minimize the distance and time necessary to move them. On the other hand, lower demand products can be placed further away and higher storage racks can be used for less frequently moved products. For optimal warehouse design, consider your product’s flow and storage frequency. Then, decide which racks are suitable for each type of product.
Investing in a warehouse allows you to purchase wholesale goods in bulk. This means you can negotiate lower prices with suppliers, thereby improving your margins when selling the goods to customers. You can also keep a stock of products in your warehouse so that they are available whenever your demand fluctuates. This way, you can avoid being left high and low, and maximize your profits while minimizing your inventory costs. You can then determine how much inventory you need to buy before you need to sell it.
Key performance indicators allow you to monitor how well your warehouse is performing and pinpoint areas for improvement. With these reports, you can better understand how much goods you receive each hour, which will ultimately help you meet your customer’s needs faster. A high score indicates an efficient warehouse, while a low score means problems need to be addressed. A high picking rate also means better management and efficiency. So, if you want your warehouse to meet peak demands, investing in a quality warehouse management system is essential.
Picking and packing processes are vital to a successful warehouse. While picking requires a large amount of resources and accounts for about 60% of warehouse staff, it has a major impact on supply chain productivity. This process involves sorting out similar articles and packing them in a suitable container. Usually, the operator who performs putaway checks the goods for accuracy and placement in their appropriate slots. They also verify that the goods have been stored correctly. Then, they place them into their designated slots and complete the putaway process.
Warehouses have many advantages for a business. For one, they can be a central hub in the supply chain, where raw materials and finished goods pass through. In addition to the warehouse’s role in supply chain management, a warehouse is also essential for inventory control. It is necessary to track the goods from pickup to delivery and keep track of where they are at all times. The performance of a warehouse is often measured against benchmarks. One of the most important measures of a warehouse is order lead time. Lead time determines how long it takes to fulfill an order. Then, the lead time is multiplied by a factor of safety.