More About Warehousing

2. SYNOPSIS

3. FIVE TIPS TO IMPROVE THE EFFICIENCY OF YOUR WAREHOUSE Update Your Standardized Processes – As the supply chain industry continues to grow, you have to reassess the processes that you have been using in your warehouse. It is highly advisable to keep adjusting the processes to free yourself from the risk of obsolete information and standards. Standard processes are very important and they ensure there is maximum security and safety in the warehouse. Moreover, such processes improve the efficiency of the operation. You should also ensure that the training and onboarding of new members is simplified. Eliminate Excessive Inventory – Excess inventory is one of the major drains on the profitability of warehousing processes. Due to this common problem, wholesalers end up purchasing huge amounts of a single product for significant discounts. This practice is a huge mistake because the excess inventory ties up money. This eventually leads to a huge drain in profitability. However this is a controllable issue. There are several ways in which you can reduce excessive inventory. One of them is to order large purchases to be delivered in small batches. This is among the most effective ways to help you improve warehouse productivity. • •

4. FIVE TIPS TO IMPROVE THE EFFICIENCY OF YOUR WAREHOUSE Account for the Warehouse Labour Cost – Labour is the highest cost of operating a warehouse. In fact, it accounts for up to 50% of the total operating costs. Accounting for labour cost manually is highly discouraged because this method is very inefficient and may produce inaccurate information. However a labour management system will definitely come in handy in this situation. It enhances efficient tracking of labour costs and simplifies work. This management system collects and uses the workforce data from the warehouse operations without any limitations. Ensure adequate technology is received by warehouse workers – Willingness is important at this juncture. It has been discovered that most people are quite uncomfortable with supply chain technology. Most people may not have the capacity to navigate the technical world and this becomes a major problem. However, there are technology providers who offer high skilled training for those it may concern. Reduce Obsolete Inventory – As long as inventory does not move, revenue does not increase and stock cannot be put up. This results in a major drain on productivity. In order to prevent this, it is encouraged that a report can be run to aid in reducing inventory. • • •

5. TOP TIPS TO FIND THE BEST WAREHOUSING COMPANY Research – Your research should be multi-layered. Don’t rely on one platform only. Look through the different warehousing association portals and ask around for referrals and recommendations. Customer review portals are also very helpful in giving you honest opinions on the services that different companies have to offer. Be sure of what is covered – In business, you always have to plan for the worst case scenario. You must be sure that your inventory will be safe and that your business can bounce back from any unexpected incidents. When looking for a warehousing company, be sure to ask what accidents and occurrences the insurance covers. More importantly, you should also be fully aware of what you are responsible for. Knowing where to draw the line on where your responsibility starts and ends is crucial for your business, so you should be sure that everyone is doing their job. • •

6. TOP TIPS TO FIND THE BEST WAREHOUSING COMPANY Look at the lease terms – Before you put pen to paper, make sure you understand the details. It is important you go for an option that is flexible, not one trying to lock you down for the long-term with unrealistic needs. What you need is a warehouse that will grow with your business and conform to the changes that your business undergoes. It is vital to make sure that your choice offers you the specific service you are looking for. Understand what services the rates cover – It seems obvious that you will know how much you will be required to pay. But, exactly what services are covered by the rates? The more services the better. Other factors that you should consider when looking at the rates include the size and support offered by the company, hours of operation as well as the handling equipment and available security. You need to be sure of what your money is getting you. Research the location – There are numerous reasons why location is such an important aspect of finding the perfect warehousing company. Some of the factors you need to consider is the distance from your primary center of operation, ease of access to the facility, as well as whether there is adequate parking space. • • •

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