9 Ways to Improve the Efficiency of Your Warehouse Business

​In 2018, globally, the logistics market value reached a whopping US$4,730 billion. Statistics show that it will continue to grow by 4.9% by the next four years. However, some logistic companies have witnessed declines in their productivity. In some bench-marking surveys, measurement of key metrics such as the number of processed orders has been fairly constant, while sales processes are also declining. To prevent this reduction, here are the top 9 ways to increase the productivity of your warehouse business.

• ​Routine auditing

To lower costs and meet customers' satisfaction, warehouse business managers need to take some measurements and analysis of the current processes. Doing proper auditing will allow you to know whether your business operations are efficient or not. Using systematic approaches, auditors can examine the warehouse operations quantitatively and qualitatively. When an operational audit is well done, it can enable managers to measure warehouse productivity and also identify market trends. By collecting data and making the necessary comparisons, you may be able to develop a plan of action geared towards improving productivity. Some logistics companies choose to hire independent auditors to ensure that the auditing process is fair and independent.

• Utilize cubic space efficiently

Studies have shown that in many facilities, occupancy varies around 25–35% of the cost/order. To optimize your warehouse assets, you need to make good use of each available cubic space. Carefully observe the facility by looking up to see if there's extra space. Lack of efficiency in using storage space can lead to an increase in costs since you are likely to build an extra warehouse that's unnecessary. Generally, 40–50% of the storage space in your facility is used to pick, pack, and ship goods. To boost utilization of your cubic space, consider using racking, multi-level order-picking methods, and powered conveyors. Additionally, you may want to check whether the cube space in your picking slot can be reconfigured to allow the storage of more products.

• Make sure sufficient products are available for pickers

A picker's productivity can be affected when a product is not available in sufficient quantities at a time they need it. Use replenishment concepts that work efficiently such that a picker will always have more products to pick. Some warehouse companies use management strategies that support mini-max. However, the real problem with catalog management concepts is that sometimes the picking-ticket may assume that a product is available; meanwhile, it's not.

• Use barcode technology

Barcodes are machine-readable parallel bars or concentric circles, varying in width, spacing, or height, used to encode information. Logistics managers can use barcodes to track their products and orders. They can also employ barcode technology to reduce paperwork, increase processing speed, perform verification, and gain visibility. This can be applied to shipping and receiving.

• Outsource tasks or hire machines

When you are in charge of a warehouse facility, you need knowledgeable employees to keep the business running productively. If you're too busy to do the hiring yourself, then you can outsource to a trusted recruitment agency. For example, DSC can get you a qualified container unloader hire to help prevent business interruptions. In the same vein, getting the right machines will go a long way to keep productivity on an all-time high. The idea of hiring warehouse machines may sound great, especially if you don't have the resources to buy brand-new replacements. You can also hire trucks and trailers from fleet companies to pick up your goods when your organizational fleet is out of service. The logistics industry is very broad. You don't need to have all the machines before you can increase efficiency. Look out for skillful third parties and outsource some operations to them.

• Hire good frontline managers

Good managers understand the need for project execution, and they should have the requisite skills to do so. A manager's ability to effectively handle all aspects of your business operations is a big plus for enhancing productivity. Boosting the morale of your workers and ensuring customers' orders fulfillment are some responsibilities that an effective frontline manager can carry. They understand the needs of your customers, vendors, and suppliers, and deliver to meet those expectations.

• Optimize your supply chain

Another way to increase your efficiency is to make adjustments to your supply chain in order to improve how you schedule your purchase orders. Develop a guideline for your vendor compliance policy, purchase terms and conditions, item specifications, and product labeling. Include quality to your products and add value to your services through the supply chain and to the vendors. The aim is to reduce the labor required to rework mistakes.

• Avoid procrastination

As the saying goes, "Procrastination is the thief of time and enemy of success." When shipments are ready, do not procrastinate to receive them. Since suppliers often deal with different companies, you will have to draw your shipment calendar to know when to expect some goods. So, take the time to unbox the items and repackage them accordingly. Be committed to this responsibility and avoid unnecessary delays since that can negatively affect your productivity. Also, when you keep postponing your shipments, they will accumulate to a large amount, and you may not be able to sort goods properly.​

• Practice lean warehouse operation

Over the last couple of years, warehousing practices have changed significantly. Gone are the days when warehousing was mainly interpreted as the storage of goods. The logistics industry has evolved into a global marketplace involving inventory management as well as shipping and receiving. A lean warehouse operation opens up a forum for savings. You can reduce the handling times of container and truck loading, increase reliability, share information, and adapt to changing trends in the customer specification landscape. In short, a lean practice can bring drastic changes to your warehouse operation mindset. When you are able to improve your picking and packing procedures, you will waste little time checking the inventories. Your stock replenishment concepts will be concise, and sale opportunities will be effectively utilized.
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To ramp up productivity in your warehouse business, entrepreneurs need to focus on key aspects of their business operations. The tips mentioned in this article are just a few ways to go about it.  

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