Warehouse Consultation | Warehouse Management best Practices
The role of warehouses in the supply chain has undergone big changes in the last couple of decades. Warehouses were and are still used as storing places for final goods or inventory meant for further distribution to different locations and distributors which were then sent down the supply chain to retailers. However, this concept of warehousing slowly began to take the shape of distribution centres to suit the needs of modern-day business models including eCommerce. Distribution centres are much more than warehouses in terms of functionalities. While the focus of conventional warehousing is to ensure stock availability all the time, the essence of distribution centres is to optimize the storage and flow of inventory. Distribution centres offer functionalities like packaging, order fulfilment, product mixing, etc. Comparatively, the carrying cost also comes down with distribution centres.
By whichever name we may call it, warehouses or fulfilment centres or distribution centres must rise to the demand of the contemporary business requirements which are its ability to fulfil business and CX strategies and achieve operational efficiency while being guided by robust processes and driven by technology. The rising complexities in managing eCommerce fulfilment warehouses have led to an increased demand for warehouse consulting firms.
The logistics industry is a vital component of the GCC economies. And warehouses assume similar significance in the logistics industry. Within GCC, UAE is a global logistics and re-export hub now being increasingly seen as a connecting point between the East and the West. Dubai is also the home to one of the largest and busiest commercial ports in the world – the Jebel Ali port. The adjoining free trade zones house more than 20,000+ companies. If you are a domestic or foreign retail brand (online or offline) and you have the Middle East as the target market, your inventory can be kept centralised within UAE or KSA or both countries for better reach. And because of the unfamiliarity, many businesses avail the services of warehouse consulting firms specializing in the management of warehouses for Retail & eCommerce companies.
Challenges in Managing Warehouses
Meeting the Competitive Delivery Standards of eCommerce and Omnichannel
ECommerce has taken the delivery game in retail to another level. The system of same day or next day delivery has become the norm in eCommerce. This has a direct bearing on the activities of supply chain and warehouse management and especially, the eCommerce warehouse processes. For startups and SMEs, it could be a completely new dimension especially if they are considering joining their supply chain with that of the GCC’s most proficient ones.
Expertise in Choosing Warehouse Management System
Warehouse management is a full-blown profession now. It requires an updated understanding and knowledge of how modern-day warehouses/distribution centres work, the different functions involved in it, and software requirements. Whether you are managing your own warehouse or operating via a third-party service provider, you must know what warehouse management software is best suited to meet your business needs and strategies. Even the warehouse consulting firms specializing in the management of warehouses for eCommerce companies need to keep themselves updated with the technological advancements made affecting their area of work.
Managing Space
Startups and SMEs often have to rely on their own limited space or hire third-party services for their warehousing and fulfilment needs. In either case, they must be convergent with warehouse layout planning and work optimization. These two components affect how quickly and safely inventory, people and tools/vehicles could move/operate within a warehouse. Warehouse functioning may slow down during the peak seasons or busy hours of the day if the warehouse layout plan is not designed proficiently either in-house or via the services of warehouse design consultants.
Impact of Inventory Management
Inventory management plays a big role in the effectiveness of warehouse management. It’s like additional guests showing up for a party; it will put stress on the planned resources including space. A warehouse cannot handle more than what it is built to function effectively and efficiently. Keeping the warehouse inventory within the limits requires controlling the inflow and outflow of goods. This is affected by elements of inventory management like demand forecasting, reordering levels, lead time estimations, etc.
How YRC Warehouse Consultants can help: a Glimpse
Our warehouse management consultants will help you plan a robust warehouse and inventory management system. This will include layout planning done by warehouse design consultants, workflow optimization, warehouse SOP flow chart development, warehouse management system (WMS system) selection and adopting automated warehouse systems, staff training, and much more.
Our expert warehouse design consultants will help you in designing an efficient warehouse layout design, inventory flow planning, warehouse Policies and Standard Operating Procedures (SOPs) for a smooth and agile warehouse functioning and eCommerce warehouse processes even for busy business volumes.
Think of iWMS or Integrated Warehouse Management System as a stand-alone ERP for warehouse management. A software application for eCommerce warehouse management system integrates the functioning of the various eCommerce warehouse processes. We will help you in selecting and implementing the right integrated warehouse management solution for your eCommerce fulfilment warehouse/distribution centre operations. Having the right software is one of the essential requirements to adopt basic warehousing procedures of an eCommerce warehouse system.
Along with warehouse consultation, our experts shall design the training programs, wherein we follow a systematic and proven process to ensure all warehouse policy and procedures are covered along with warehouse safety policy and procedures. This includes activities like conducting a thorough job analysis, assessing the skill requirements against the job requirements, examining the actual warehouse processes and procedures in place against the established SOPs (i.e. Gap Analysis), creating a training calendar, etc. Our efforts are aimed at ensuring that you have a team of trained staff at your warehouse to help you implement warehouse management best practices. To know more read: HR Consulting Services
Our warehouse optimization consulting will help you in designing and implementing robust warehouse sop templates for various activities of inventory management like:
- demand forecasting,
- vendor/supplier selection, reorder and procurement,
- inbound and outbound process in warehouse
- warehouse bin location best practices
- storage, handling and packaging,
- warehouse loading and unloading procedure
- logistics and delivery,
- audit and control, SOP-IT integration, etc.
To read more visit: SOP Writing Services
We are boutique warehouse automation consultants. To know more about our warehouse consulting services or if you have any query, drop us a message here, and we will get back to you.
FAQs
Do's and Don'ts of Warehouse Operations?
Warehouse Operations need to be planned carefully, as its the backbone to run the warehouse efficuently.
Do’s:
- Ensure SOP Manuals are deined for each process (make sure these SOPs are built as per the software implemented)
- Implement a robust Warehouse Management System for proper warehouse bin location maagement, warehouse inventory management, streamline procedure of receiving goods in a warehouse & outbound process in warehouse.
- Map down the Job Desription and hire team members accordingly
- Warehouse Layout design is very ciritcal to eliminate space wastage and ensure proper goods handling equipments are planned
- Regular Audits like inventory and process audits are a must toi ensure consistenty in efficiency
Don’ts:
- Avoid relying on person-dependent systems that become disastrous when the main person is absent or unavailable.
- Warehouse space & inventory management as per FIFO and Fast Movers Placement policies are very critical especially in case fo products with a stipulated shelf life.
- Dumping of inventory to be avoided. Ensure regular inventory checks and discard the unwanted as scrap, unless you need to have them there for any other reasons
- Onboarding of blue collar employees without giving training on must-know topics like unloading, goods handling, inbound & outbound process flow, safety precautions, theft implications and HR policies.
To know more about warhouse management, get in touch with YRC Experts. Click Here.
How to arrange stock in warehouse?
Stocking goods in warehouse and defining policies for same is critical. Ways to arrange stock shall depend of the following types of invetory, such as:
- Pallet Inventory/ Bulk Packaed Inventory: This would include goods which are received and distributed furtherin pallets without opening the packaging.
- Fast Moving Goods: This includes goods which are fast movers i.e. regular outbound/ dispatches are performed. Ensure these goods are stored at eye-level and easily accesible to facilitate fast putaway & picking process
- Perishable/ Shelf Life Inventory: This includes goods with an expiry date. Ensure these goods are strictly arranged as per FIFO while putaway.
- Semi-Finished/ Raw Material: These goods are to be dispatched or alloted to the production department or assembly-line, as per the BOM. Ensure Finished Goods and Raw Material are stacked seperately.
Few activities which are a must-do for inventory management at warehouse:
- Regular stock counts to be performed
- Ensure to define racks/ bins while put-away
- Ensure to stack goods as per FIFO (define SOPs for same)
- Define Goods handling SOPs so staff is aware about how to avoid goods-handling damages
- Ensure Warehouse Layout has been designed consiering the flow of processes, goods and staff to manage inbound and outbound
How to calculate storage capacity of warehouse?
In order to calculate the storage capacity of warehouse you need to consider the following parameters:
- Packaging Size
- Order Volumes/ Outbound Volumes
- Rack Size
- Average Purchase TAT (Turn Aorund Time)
Based upon the above factors, storage capacity can be calculated for warehouse.
YRC has created an explanatory video for same, check out by clicking here.
How to improve your warehouse operations?
Warehouse Operations has multiple critical elements which needs to be streamlined to avoid errors. In order to improve and streamline these operations, follow the steps below:
- Define SOPs:
- Re-Design Warehouse Layout Design
- Implement robust WMS System
- Impart regular training to ensure consistency in processes
- Process Audits and Inventory Count Audits on regular basis
To know more about optimizing warehouse operations, get in touch with YRC warehouse experts. Click here.
How to prevent theft in warehouse?
Theft prevention requires various factors to work in tandem. Detailed out these factors below:
- Warehouse layout has to be designed ensuring these are no leakage points within the warehouse especially during inbound, storage and outbound.
- Implementing security systems and hardware along with monitoring system SOPs
- Defining SOPs for security policies and processes espicially for staff entry & exit procedures
- Inventory Counts on regular basis to track pilferage. Tracking pilferage rate is the first steps towards controlling it.
- Audits of Security Process SOPs defined on regualr intervals
To know more and discuss your specific concerns, get it touch with YRC Experts for solutions to avoid theft.
How to implement 5s in warehouse?
5 “S” stands for :
- Sort
- Set
- Shine
- Standardise and
- Sustain
First step for Implementing 5s is drafting the blue-print of processes and SOPs required to implement the 5S at warehouse
After the SOPs are been drafted, training and audits on regular intervals shall help to implement 5S at warehouse