A product you order online goes through several stages before arriving at your step.
A small business might retrieve the item from a storage area, manually record details, pack and switch the product over to a shipper.
Large brands, nevertheless, use extensive warehouse networks, with items moving along shelves, conveyor belts, and loading docks, while they’re electronically cataloged, stored, and ready for shipment.
Well-executed warehouse logistics can ensure faster order processing, lower costs, and better customer satisfaction. While, inefficient warehouse logistics can mean delayed shipments, incorrect orders, and damaged goods.
Here’s the right way to streamline your warehouse logistics, so you may avoid issues, lower your costs, and improve customer satisfaction. Learn suggestions and technologies for optimizing your inventory management, picking and packing processes, and warehousing operations.
What’s warehouse logistics?
Warehouse logistics refers to managing the flow of products and knowledge inside a warehouse, from receiving and storing inventory to picking, packing, and shipping orders. It includes inventory management, order processing, material handling, and quality control.
The goal of warehouse logistics is to reinforce the efficiency of your warehouse and boost customer satisfaction by fine-tuning warehouse space and reducing order processing time.
Warehouse logistics vs. supply chain management
Although warehouse logistics and provide chain management are closely related, they’re distinct concepts. Warehouse logistics focuses specifically on the processes and activities inside a warehouse, like receiving, storing, picking, packing, and shipping goods.
Supply chain management is broader in scope. It involves the planning, coordination, and control of all activities across the complete supply chain—from raw material procurement to delivery of finished products. It includes warehouse logistics, supplier relationship management, demand forecasting, transportation, and reverse logistics for customer returns.
Suggestions for improving warehouse logistics
Effective logistics can create efficient warehouse operations and reduce costs. Listed below are seven tricks to assist you to overcome common logistical challenges and transform your warehouse right into a well-oiled machine:
Implement a warehouse management system
A warehouse management system (WMS) is a software solution that enhances and automates warehousing processes. It provides real-time visibility into inventory levels, order statuses, and worker productivity. It’s the inspiration of a well-functioning warehouse logistics system. Warehouse managers use it to oversee inventory management and devise strategies to enhance warehouse logistics, like reducing waste and ensuring safety.
Inaccurate inventory tracking and a scarcity of real-time information can hinder efficient warehouse logistics, causing misguided decisions that result in stockouts, overstocking, and better costs. Implementing a WMS—with features like barcode scanning, automated picking routes, and real-time data analytics—can improve operational efficiency and accuracy.
Popular WMS options include Oracle’s NetSuite WMS, SAP Prolonged Warehouse Management, and Blue Yonder’s WMS.
Optimize warehouse layout and storage
A disorganized warehouse with an inefficient configuration slows logistics, wasting time, increasing labor costs, and posing safety hazards. For example, a food distributor might struggle with expired products within the absence of real-time tracking, causing financial losses and health risks.
To resolve these issues, a warehouse manager can optimize warehouse layout and storage systems. Analyzing the present layout, identifying bottlenecks, and redesigning space for storing can maximize efficiency. Strategies like zone picking, ABC evaluation for grading inventory quality, and using vertical space with proper shelving and racking systems can improve storage density and reduce pickers’ travel time.
Streamline the order picking processes
Technologies like barcode scanners or voice-directed picking tools can minimize travel time, reduce errors, and improve overall picking efficiency. To streamline order picking, consider implementing picking strategies like batch picking, wave picking, or zone picking:
- Batch picking. This method involves grouping similar items together and collecting multiple orders concurrently to scale back travel time and improve efficiency.
- Wave picking. This picking strategy releases orders in waves at predetermined intervals, allowing pickers to concentrate on a particular set of orders and improve productivity.
- Zone picking. By dividing your warehouse into distinct zones with each picker assigned to a particular zone, you may reduce travel time and increase pickers’ familiarity with the products of their area.
Leverage automation and technology
Manual processes and outdated technology may cause inefficiencies, errors, and lack of real-time monitoring throughout your supply chain. Don’t shrink back from automation and technology to deal with these challenges. Radio frequency identification (RFID), automated guided vehicles (AGVs), and voice-directed picking, provide accurate real-time data. This permits you to track inventory levels, monitor key performance indicators (KPIs), and improve processes like receiving, putaway, and order success.
Along with a WMS, consider transportation management systems (TMS), inventory management software, and other warehouse management software solutions like enterprise resource planning (ERP) and customer relationship management (CRM) systems. Physical automation tools like conveyor belts, sorting machines, and automatic storage and retrieval systems (AS/RS) may also streamline material handling processes.
You may also improve warehouse logistics by utilizing voice picking solutions for faster order success. A sporting goods retailer could use voice picking solutions, with staff wearing headsets that give verbal instructions on which items to select and where to search out them within the warehouse.
Establish efficient returns management procedures
Customer returns are common because of product defects, incorrect orders, or dissatisfaction. Inefficient returns management can increase costs and strain your organization’s supply chain. In case your warehouse lacks a streamlined process to examine, repair, or eliminate damaged items, it could result in increased storage costs and potential inventory discrepancies.
To determine efficient returns management, develop a transparent returns policy outlining acceptable reasons, closing dates, and any fees. Then, implement a dedicated returns processing area in your warehouse where staff can quickly inspect, sort, and determine the suitable motion for returned items, like restocking, refurbishing, or disposal.
Barcode scanning and integrated inventory management systems may help accurately track returned items, update inventory levels in real-time, and minimize errors.
Put money into worker training and development
Some firms outsource logistics to third-party providers, but for those managing their very own warehouses, investing in worker training is crucial. Poorly trained warehouse staff may cause more mistakes, mishandle perishable goods, inaccurately track stock levels, and increase accident risks.
To handle these issues, implement training programs covering safety protocols, material handling techniques, inventory management, and use of the precise equipment. This offers employees the needed knowledge and skills to make fewer mistakes and perform their jobs effectively.
Constantly monitor and analyze performance metrics
Constantly monitoring and analyzing KPIs, like order accuracy, inventory turnover, and timely delivery rates, is crucial for identifying trends, bottlenecks, and areas for improvement. Without it, inefficiencies, increased operational costs, and challenges in meeting customer demands may arise.
For example, an organization might set a 99.5% order accuracy KPI, but understand it’s currently at 95%. To handle this, it could implement a barcode scanning system and supply additional staff training, to enhance accuracy rates.
Warehouse logistics FAQ
What are three key parts of warehousing logistics?
Three key parts of warehousing logistics are warehouse management, warehouse operations, and warehouse management systems.
Is logistics the identical as warehouse management?
No. Logistics is a broader term that features the complete supply chain, while warehouse management specifically focuses on the operations inside a warehouse.
What’s an example of logistics in a warehouse?
An example of logistics in a warehouse is using a conveyor system to move items from the receiving area to the precise storage locations, reducing manual labor and increasing efficiency.
