Efficiency in Warehouse Management

The biggest measuring success factor in a warehouse is always the efficiency. 

How can we achieve the highest efficiency, that is the question!

Here are a few criteria that I always emphasize:

• Inventory accuracy: inaccurate inventory always interrupt on-going warehouse processes and causes delays in shipments in timely manner and makes customer upset, lost customer causes revenue loss.

• Labeling (Storage bins, Product & HU label on boxing): You have to make sure you have the most efficient, readable, scannable and user-friendly labeling on each storage bins as well as on each product & HU Label on the boxes.

• Replenishment: Make sure Fixed Bins are always have enough stock for pickers​. If not then use Order-Based Replenishment configuration.

• Use the most integrated and the most powerful functional warehouse management system like SAP EWM - Extended Warehouse Management.

• Avoid over-engineered custom developments in standard functionalities. I have seen many company's warehouse management system failed just because of over-engineered solution.

• Avoid extreme deviation-custom development of SAP EWM's RF transactions: This is also crucial because many companies create custom transactions that does not match SAP EWM's standard transaction, logical sequence and process flow, which can cause immediate failure.

• Each Manager/Supervisor should be able to perform each role as effective as possible assuming there is shortage in manpower. By doing this they can understand what is easy and what is not easy, what is efficient and what is not efficient in warehouse. 

• Training: continuous training in warehouse environment is extremely important. One-page per process training is very efficient way of training people in warehouse, short and effective training is the keyword.

• Continuous improvement process: Get employees involved in business process improvement and assign them to write SOP​ for each processes. Always review as a team and make correction as needed. 

• Cleaning:  A clean and tidy warehouse motives everyone. Keep Bin Locations Clean and Organized. Clean and nicely organized warehouse bin locations mean employees can move around more quickly and get things such as counting and picking easier and faster.

• Take your time and perform the job only once: some managers think speeding processes increase the efficiency, but indeed it doesn't. If inbound pallet and packaging takes 10 minutes for a perfect job, make it happen. Don't move the unfinished packaging to another station and try to do packaging once again before put away process.

• Avoid distraction: Focus on organization, delegate work one at a time. Make sure each assigned task gets completed before start a new one. 

• Safety first: Make sure you have proper safety rules and policies in the warehouse.  Undesired accidents demotivate everyone. Make sure no visible jewelries are worn during shift hours. I have witnessed many accidents at work places.

• Charging stations: make sure forklift and RF device batteries are always full of charge. Make sure each equipment gets fair amount of turn in charging station and no machine could stop in the middle of the daily operation. 

• Maintenance: Make sure all the equipment and devices get preventive maintenance in timely manner to avoid undesired interruption in the warehouse environment. 

• Family takes the precedence: As a manager/supervisor make sure you pay attention to workers family requirement and assign enough space that they can take their time on important family issues. A motivated worker can make you the most successful or the most unsuccessful supervisor/manager in your business line.