Most warehouse managers get overwhelmed to run warehouse operations effectively and efficiently due to obvious technicalities. The main reason why this happens is that these managers are more focused on trying to keep the warehouses profitable in a competitive market and forgetting about the other issues related to boosting productivity. Here are the main foundations that warehouse managers should put in place in order to ensure warehouse success:
Accuracy
Every warehouse is just part of the supply chain. Hence the warehouse has a role of receiving, storing, and shipping the right products to the right client at the right time. Therefore, with the pressure of delivering the right quantities of products to the right customer in a timely manner at the lowest possible cost, there is a possibility that accuracy can be compromised. This usually happens among the small and mid-sized warehouse operations. However, innovative technologies like checkweigher, RFIDs, warehouse management systems, and barcode scanners are making these processes more accurate. Besides these technologies, warehouses can also fix some of these inaccuracies by enhancing employee training and investing in other checks and balances.
Cost Control
The goods being received, stored, and shipped have to be processed at the right prices. Hence, the warehouse managers have to keep an eye on the operating costs of the warehouse at all times. A Modern Materials Handling research of 2015 showed that 83% are always focused on lowering their operating costs. In order to deliver goods at the right prices, the warehouse managers have to identify the items and areas of production that are cost-intensive so that they can effectively lower or control costs. Some of the most cost-intensive activities in warehouse operations include but not limited to storage costs, labor costs, equipment costs, and utility costs.
Efficiency
Some warehouse managers fail to achieve success in their warehouse productivity due to cost inefficiency. An efficient warehouse operation has to rely on technology and smooth processes.
- Technology: a technology will come in handy in automating repetitive tasks and improving the management of resources such as the utilization of warehouse space, labor, and equipment. The technology that a warehouse invests in should also help it in collecting data in real-time to enhance quick decision making and forecast market demands.
- Processes: optimizing a warehouse is very pivotal. A warehouse that is focused on defining, documenting and reviewing its processes periodically is bound to be competitive. This is very necessary because every cargo requires its unique processes and no one fits all.
Security
Remember, besides the fact that customers have entrusted your warehouse with their goods, you have also invested a lot of money and you do expect ROI from the business. Therefore, it’s paramount that you ensure there is top-notch security so that you can retain these customers, get repeat business, earn a good reputation, and run a profitable business.
Due to the high concentration of goods in a single location, warehouses experience the highest theft rate in the business sector. Unfortunately, most of the theft cases in the warehousing industry are directly and indirectly conducted internally. A good security strategy should focus on physical security, IT security, personnel security, customer evaluation, visitor identification, and standard operating procedures.
Health & Safety
A successful warehouse management system always focuses on health and safety. Accidents are bound to happen in any warehouse regardless of its size. The most common hazards that can happen in any warehouse include equipment accidents, slips, falls, strains, muscle tears, and harmful substances. OSHA concluded that the warehousing injury rate in the warehouse industry surpassed the national rate in its 3220 Worker Safety Series Publication.
It’s prudent to incur an expense in securing your warehouse than to be engaged in complex and costly lawsuits in court. Thus, smart warehouse managers choose to be proactive in providing their employees a secure workplace that adheres to the OSHA regulations.