Overseeing a warehouse is akin to solving an intricate puzzle, where each component must align seamlessly for efficient operations. With incoming and outgoing goods, maintained shelves, and timely customer orders, the core essence lies within your team, the dedicated individuals who diligently drive the operations forward. Supervising a team presents its challenges. It involves recruiting suitable candidates, providing thorough training, and fostering cohesive teamwork amongst all members.
Arrange the Warehouse Layout
Ensure easy access to popular and top-selling items and allocate ample space for your staff. If dollies, forklifts, or other equipment are used for item retrieval, ensure there is sufficient room for safe and efficient operation within the warehouse. Organize the warehouse to accommodate necessary items only, removing any unnecessary ones.
Additionally, plan for convenient inventory checks when required. While a Warehouse Management System (WMS) will assist in inventory tracking (discussed later), occasional manual counts may be necessary, so make it simple for your employees to perform these checks.
Invest in the Right Equipment
For optimal operations, equip your warehouse with the necessary gear such as warehouse trolleys, shelves, storage bins, corrugated boxes, pallets, and forklifts. Implementing an inventory monitoring system using software or handheld devices is also crucial. Investing in the appropriate equipment can enhance warehouse efficiency and prevent issues related to lost or damaged inventory.
Overstaffing
Among novice distributors and retailers, a typical error is overstaffing. Initially, they find themselves overwhelmed by warehouse management and consequently hire an excessive number of employees. While having robust support at the outset of a new business is beneficial, it’s easy to become accustomed to the convenience of a larger workforce. It’s crucial to remember that a higher headcount translates to increased monthly salary expenses.
Instead, aim to automate tasks as much as possible. Smart tools entail a one-time investment that can lead to significant cost savings for businesses in the long term. We also suggest organizing regular employee training sessions. While it may seem like an unnecessary cost, on-the-job training has been shown to boost workplace productivity by up to 70%.
Minimize Stock of Unsold Items
You may notice certain inventory shelves consistently remain stocked, not because you are replenishing a popular item but because the items on these shelves have low sales. These slow-moving products are occupying valuable space in your warehouse. It is vital to identify the unsold items to remove them from your stock effectively. Your company could consider holding a sale to reduce inventory or exploring alternative methods of disposing of them.
Use Intelligent Forecasting
Warehouse managers depended on historical invoices and instinct to predict and procure inventory for upcoming seasons or events. However, present-day customers have elevated expectations. Successful warehouse managers now employ technology to handle forecasting, leading to the elimination of shortages, out-of-stock alerts, or the need to apologize when essential customers face product unavailability. A proficient warehouse management system can revolutionize forecasting, positioning you as a hero in the eyes of both your team and customers.
Endnote
These suggestions for managing warehouse inventory can enhance operational efficiency and boost your business’s overall productivity. As productivity rises, expenses will naturally decrease, aligning with the ultimate objective of any savvy distributor.
Also Read: Data Warehouse & Business Intelligence Architecture
