The high operational costs of warehouses are one of the causes of corporate inefficiency. According to McKinsey, globally, companies spend up to 300 million Euros or around $5 trillion annually on warehouse management.
This guide consists of crucial steps to assist you in efficiently managing warehouses, covering aspects from workforce and equipment to the right picking methods.
Chapter 1: Understanding Warehouses: Definition and its ImportanceAugust 1, 2023
A warehouse is a place used by various manufacturers and others to store goods. Warehouses also play an important role in the supply chain. The role of the supply chain itself is to send the right goods, in the right quantities, to the right customers, in the right place, time, condition and price.
Chapter 2: Warehouse Manager: Roles and 10 Challenges to OvercomeAugust 1, 2023
The role of the warehouse manager is very important to manage warehouse efficiency and effectiveness. For this reason, warehouse managers must be able to overcome challenges such as pressure to reduce operational costs, achieve perfect orders, shorter order lead times, delivery via multiple channels, smaller and more frequent orders, greater fluctuations in demand, increased stock holding units , etc.
Chapter 3: Warehouse Management: 9 Vital ProcessesAugust 8, 2023
Each different type of warehouse has the same key processes. There are 9 main processes in the warehouse, including: 1. Pre-receipt 2. In-handling process 3. Preparation 4. Offloading 5. Checking 6. Sorting/moving (Cross docking) ) 7. Recording 8. Quality control 9. Placement (Put-away)
Chapter 4: Picking Process: Warehouse Preparation & LayoutAugust 8, 2023
Picking is the process of removing customer ordered goods from warehouse shelves for delivery to customers. In order for the picking process to run effectively and productively, various preparations must be made. Preparation also includes having a comprehensive understanding of the product and sales patterns as well as the available data to produce an ABC analysis.
Chapter 4.1: 3 Picking Strategies in Warehouse OperationsAugust 10, 2023
The picking strategy for each company can be different. The 3 picking strategies in the warehouse are: 1. Picker to goods, 2. Goods to picker, 3. Automated picking. The picker-to-goods strategy remains the most widely used picking strategy in warehouse operations today. However, a goods-to-picker strategy can use automation so that work is completed more quickly and costs are more affordable.
Chapter 4.2: 6 Warehousing Equipment for Efficient Picking ProcessAugust 14, 2023
Warehouses are closely related to logistics. The 6 warehouse equipment that must be present for the picking process are: 1. Trolleys/cages, 2. Pallets and trucks, 3. Forklift trucks, 4. Low-level order pickers (LLOP) and towing tractors, 5. High-level order pickers (HLOP), 6. Conveyors. The picking strategy can be adjusted to the company's needs, so that the type and warehouse equipment required by each company can be different.
Chapter 4.3: 7 Warehouse Picking Methods: How to Choose the Right OneAugust 14, 2023
The use of technology can help the process of picking goods in the warehouse. The following are 7 methods for picking up goods, namely: Barcode, paper pick lists, Pick by label, Pick by voice, Radio frequency identification (RFID), Pick by light/pick to light, Put to light. Of the seven methods above, the barcode method is most often used because it is easy to use and the price is more affordable.
Chapter 5: Stock Replenishment: 2 Ways to Calculate and Return ProcessAugust 16, 2023
Replenishment is a process carried out to facilitate the picking process and provide satisfaction to the picker. Receiving and picking have an important role in the warehouse, but the replenishment and dispatch processes also have an equally important role in warehouse operations. Timely replenishment will ensure the picking process runs efficiently, while timely and accurate delivery will ensure customer lead times are met.
Chapter 6: 7 Tips for Selecting the Ideal WMSAugust 16, 2023
Warehouse Management System (WMS) is software that helps control and manage warehouse operations. Here are 7 steps to choosing the right WMS for business. Information is key to warehouse management and having real-time data is valuable. Using a Warehouse Management System (WMS) can increase speed, productivity and accuracy.
Chapter 7: Creating a Warehouse Layout: 5 Essential StepsAugust 18, 2023
Warehouse layout is a warehouse design that is planned to streamline overall operations. The following are the benefits and steps in designing a warehouse layout: Optimizing warehouse space, Increasing productivity, Utilizing labor and budget effectively, Maintaining room tidiness, Improving overall warehouse management, Solutions to dealing with shortages of warehouse space.
Chapter 8: Warehouse Storage System & 4 Essential Warehouse ToolsAugust 22, 2023
Warehouse storage systems include racking and block stacking. Apart from that, there are 4 handling tools in warehouse operations, namely equipment for horizontal movement, equipment for horizontal and vertical movement, automated storage and retrieval systems (AS/RS), special equipment. Selection of appropriate equipment and storage depends largely on product characteristics, warehouse dimensions and environment, product velocity, and available budget.
Chapter 9: Warehouse Cost: 2 Determination Systems & Reduction TipsAugust 24, 2023
Warehouse costs are an important thing to take into account in the company. In practice, there are two warehouse costing systems that are commonly used, namely the traditional costing method and activity-based costing. Warehouse managers need a comprehensive understanding of their warehouse costs.
Chapter 10: 6 Warehouse Performance Metrics & Tips for Choosing ThemAugust 24, 2023
Warehouse performance measurement helps companies take a holistic view of warehouse performance. There are 6 methods for measuring warehouse performance, namely: Traditional productivity measurements, New performance metrics, Hard and soft measures, Integrated models, Benchmarking, Balanced scorecard. Performance management measurements are key to running efficient operations.