Is your warehouse more of a “what” house?

Warehouse efficiency: A cornerstone of high-performance operations

The modern warehouse can often be a mess, and we don’t mean like a “messy room” (though that can often be an issue, too).

We mean inefficient layouts that don’t match modern workflows. We mean poor inventory management and space management. We mean a lack of overall flexibility in accommodating changes in consumer behavior, the supply chain, or the world at large.

The warehouse plays a vital role in a company's overall efficiency and profitability. By optimizing warehouse operations, businesses can reduce costs, improve customer service, and gain a lasting advantage. Let’s dig into addressing the challenges and how different ways of thinking and new technologies can transform warehouse operations.

Technologies and tactics to create more efficient warehouse layouts

Big surprise: The first step in creating a more efficient warehouse is analysis. Stakeholders need to analyze factors like product types, order fulfillment methods (batch picking, zone picking etc.), and future growth plans to design a layout that optimizes workflows.

Space can and should be optimized with high-bay racking, maximizing aisle width based on equipment used, and creative storage solutions like mezzanines to increase storage capacity. And the overall design should minimize travel distances for workers and equipment (e.g., by placing frequently accessed items closer to picking areas).

Regarding technology, Warehouse Management Systems (WMS) are a must (fortunately, Dynamics provides such tools and Argano has the engineering expertise to make them suit your specific needs). WMS can analyze historical data to optimize picking routes, generate efficient pick lists, and track inventory levels in real-time. They are now the “brains” of the warehouse.

The “brawn” is changing, too, with automation and robotics.  Automated storage and retrieval systems (AS/RS) can eliminate the need for manual retrieval of high-demand items in tall racks, and robots can also be used for picking and packing tasks, improving speed and accuracy. (Check out the story of an Argano client who leveraged such tools to create a “smart warehouse.”)

Modern inventory management

It’s all about having the right amount of the right stuff at the right time, and modern warehouse management systems provide real-time visibility into inventory levels, track product movement, and optimize stock replenishment.

Again, data and analytics play a vital role in optimizing inventory management. By leveraging historical sales data, seasonal trends, and industry patterns, a business can predict future demand for products, and avoid stockouts and overstocking.

As with creating more efficient layouts, the WMS is central as it allows real-time inventory tracking, allowing for better visibility into stock levels across locations. It also automates tasks like order picking and cycle counting, reducing errors and improving accuracy.

Additionally, barcode scanners and RFID tags (radio frequency identification: very common tracking devices) can be used during receiving, picking, and storage processes, streamlining data collection and ensuring accurate inventory records.

Solving for any scenario

Supply and demand are not fixed. They are flexible. Which is why your warehouse needs flexibility as its guiding light.

Ensure that, strategically, you have developed plans for various scenarios, such as sudden surges in demand for specific products or delays in receiving shipments from suppliers, allowing for a quicker response when disruptions occur… such as global pandemics.

Design your warehouse to handle different fulfillment methods, like direct-to-consumer orders, bulk shipments to stores, and click-and-collect options, all of which provide adaptability to changing consumer preferences.

And spread out sourcing with “supplier diversification.” Sourcing materials and products from multiple suppliers reduces dependence on any single source and minimizes disruption if there are issues with a particular supplier.

Technology-wise, we’re going to stick with a theme: WMS. A cloud-based WMS offers both flexibility and scalability, allowing the system to adapt to changes in order volume or product types without expensive hardware upgrades.

Additional tools that can help ensure flexibility include warehouse simulation software that lets you build 3D models and test different layout configurations and workflows before implementation. Some warehouses are also using 3D printers to reduce reliance on external suppliers for certain parts or tools, which drastically improves responsiveness to changes in production needs.

From a where/what/why house to a powerhouse

While digital transformation impacts every arena of work, one thing will remain constant: goods gotta get where they’re going, and that invariably means warehousing.

It’s time for supply chain professionals and inventory managers to view the warehouse not simply as storage space (as that reduces it to a cost center) but as a hub for high-performance operations.

Re-tooling and redesigning your warehouse with the ideas and technologies detailed here is a great way to start making your warehouse into a powerhouse.