Tips for Improving Warehouse Efficiency and Making it More Profitable

Managing a warehouse is more than having a tight control on issues such as inventory, freight, and laborers. It’s true that labor costs can destroy any thriving warehousing business. Due to this, it’s imperative for the warehouse owner to find ways of improving efficiency. An efficient warehouse is a productive facility. When efficiency and productivity improve, the warehouse will continue being profitable.

So, how can efficiency, productivity and profitability improve in the warehouse?

Introduce Incentive Pay

First, some of the biggest warehouses operate what’s known as ‘incentive pay’. This simply means that workers receive incentives for good performance. The biggest percentile improvement occurs when workers know that their efforts will not go unappreciated or unnoticed. Since more than half of any warehouse workforce operate in the pick and pack section, it only makes sense that the ‘incentive pay’ program should start there.

Simplify Processes and Reduce Costs

Secondly, a warehouse that seeks to thrive should do the following:

  1. simplify processes
  2. reduce touches
  3. reduce costs

New functions should never be layered on tops of the old ones. Study the physical processes closely. All the steps regarding order fulfillment and product flow need in-depth studying and evaluation to ensure that all is well. By simplifying processes, the warehouse owners will lower their costs. With reduced costs come higher profits. Check all aspects of the warehouse to see if the processes flow smoothly. Remove handicaps and bottlenecks that triple or double costs. Pallet racking and warehouse storage solutions are vital to many businesses operating with products. Second hand or used pallet racking maybe the solution you’re looking for if reducing the initial costs are an important factor.

Encourage Feedback between Employees and Management

Feedback from the warehouse employees should be encouraged. Also, the warehouse owners should share information with their employees regarding performance. Individual and collective or departmental performance deserves to be studied and evaluated. The information should then be shared with the respective personnel or departments. Do this and see the workers responding positively by improving their productivity.

Appoint Frontline Managers

An efficient, productive and profitable warehouse does not just happen on its own. The workers within the warehouse are the most critical elements. Without them, warehouse owners can never manage to make their facilities efficient. Therefore, appoint frontline managers who are willing to develop teams that value efficiency. Appoint managers who appreciate the importance of proper execution. Effective frontline managers are capable of:

  • Boosting worker morale
  • Improving the quality of order fulfillment that customers receive
  • Doing whatever it takes to reduce costs

Lastly, it’s important to focus on in-bound supply chain as well. Where appropriate, make changes to the supply chain. Vendor compliance policies need to be developed well. Examine the terms and conditions regarding purchases too. Encourage on-time delivery by every person working in the warehouse. Investing in the latest technology (such as voice-over technology) is also guaranteed to make the warehouse more efficient, productive and profitable.

 

Need Of Extra Space In your Warehouse? Pallet Racks Systems Offers an Ideal Solution

With the present financial challenges faced by many companies today, businesses are searching for cost and time-effective ways to run their daily operations. There is a great need for more efficient and safe storage of your products, as this is essential for the growth of your business.

One common thing among retail stores, distributors and manufacturers’ warehouses is that they all have the need to display their products – whether finished or raw materials. Easy and quick access to these materials helps to improve efficiency, save time and increase productivity. These benefits combine to give you an edge over competitors as well as help to keep your company in top shape.

Pallet Racks Systems are beneficial in:

  • Manufacturing Settings: Suitable for the storage of raw materials, spare parts or finished goods.
  • Warehouse/Distribution companies: Racks may be used for complex order picking or simple pallet storage
  • Retail Shops: Ideal for storage and display of products
  • Archive and Record Storage: Racks aid space utilization for efficient record storage and with ease of access.

Selecting the most Suitable Pallet Racks For Your need

Selective Pallet Racks

This seems to be the most common and versatile design. It offers easy access to items, providing good use of floor space and easy loading and unloading of products. This is ideal for activities that deal with personal and businesses storage of a wide variety of goods.

Pallet Flow Pallet Racks

This is a first-in-first-out system. It is designed to save floor space and labor by offering high-density storage with several order picking levels. It is suitable for the storage of perishable goods.

Push Back Pallet Racks

Unlike the Pallet Flow Pallet Racks, this is a first-in/last out system tailored for large multi-product storage which helps to minimize required space and at the same time, providing excellent selective options

Drive-thru/Drive-in Pallet Racks

They are suitable for storage of large quantity of similar products.

Drive-In pallet racks: this is a first-in-first-out flow system that allows you get easy access to your products from either the front or back of the aisles.

Carton Flow Pallet Racks – this first-in-first-out flow system is suitable for operations demanding huge volume of picking order. The system is designed in a way that products are loaded through the back and picked at the front.

Cantilever Pallet Racks: This system is designed with a number of arms for storage of long and bulky goods.

 Benefits of Pallet Racks

  • Efficient space utilization, better flow of operations and increase in productivity
  • More effective inventory control and management
  • Improved accuracy in order picking operations
  • Improved on-time and full delivery
  • Greater product security
  • Reduced cost of labor
  • Increased safety of workers
  • Enhanced workplace layout and appearance

With the several pallet rack systems available for warehouse operators to select from, you have to determine the most suitable system for your needs and then design it to fit your facility and specific needs. You will have to consider the height of your warehouse, available floor space, pallet weight and size as well as the dimension of your pallet jack and forklift to determine the height and width of your racking system. You will be walking the path of improving the productivity of your warehouse operations by organizing your facility with a suitable racking system.