The Five-Point To Improve Warehouse Operations And Increase Profitability

June 13, 2022

Over the last year, the warehouse and distribution industry has grown at a breakneck pace. More warehouses opened as e-commerce and omnichannel fulfilment expanded in popularity, boosting rivalry in the marketplace, while many distribution facilities used technological platforms to boost productivity.

Many third-party logistics (3PL) warehouses found themselves unable to develop or even retain profitability despite rising market demand in a vibrant and fast-growing business with a dramatic increase in competition. Warehouses that stay focused on their company, loyal to their clients, and operationally disciplined in a volatile market have the best chance of becoming more successful. Now, here are five warehouse improvement ideas to assist 3PLs in achieving those objectives and increasing the profitability of their warehouses.

Define Space

Consider making better use of vertical space rather than expanding your warehouse’s area. Rather than incurring additional costs, larger warehouse storage equipment units and the appropriate technology for picking and storing items can allow you to maintain more in the same square area. Think about the type and variety of shelving you’ll be using. Pallet racks should not be used to store little items since they waste space and make it easy to lose them. Rather than employing the same racks throughout your warehouse, you may require different forms of storage for different commodities. Also, to keep shelves nice and ordered, use standardised bins.

Proper Planning 

Huge market shifts occur unexpectedly. However, until a catalyst causes the ultimate metamorphosis, there are usually patterns moving in a given direction. Early adopters are more likely to survive and profit from market shifts, but businesses that are late to the game often pay the price. This emphasises the need for 3PLs to pay close attention to changing customer trends.

Even if many warehouses solely deal with B2B customers, consumer behaviour will always have an impact on supply chains. Warehouses will be better positioned to expand and profit from changing markets if they stay on top of industry trends and keep an open mind to change, rather than reacting late while their more perceptive competitors take the lead.

Adopt Effective Technology 

By recommending the optimal routes and procedures for selecting and putting away, a warehouse management system (WMS) or an ERP system with a powerful WMS module can boost efficiency. In addition, the system provides automated option lists that may be transmitted to mobile readers and devices, which reduces errors and saves time and paper. Your warehouse will be cleaner and more environmentally friendly. Transaction accuracy and picking errors can both be improved by using barcode or radio frequency identification (RFID) readers.

WMS Connectivity 

Many 3PL facilities devote a significant amount of time to manually tracking inbound inventory, outbound orders and invoicing. Having a system that can connect to a range of software platforms to help your staff be more productive can save you a lot of time. Because not all warehouse management systems are created equal, make sure yours can export charges to your accounting platform, connect to online shopping carts and small parcel service providers to process orders, and connect with transportation management systems (TMS) to track inbound shipments and facilitate automated dock scheduling to hold carriers accountable for wait time and delays. You’ll need to locate a platform with an open API to interact with other systems unless your warehouse is willing to pay upwards of six figures per year on a custom-built WMS. By connecting systems, a cloud-based, adaptable WMS can help minimise expenses, provide technical extendibility, and boost productivity.

Evaluate Warehouse Staff

The business and the team may design their workflows around accomplishing the overarching vision for the future once they have a clear understanding of it. This enables for more efficient labour allocation and a more defined criterion for selecting and implementing technical solutions.

Automating the most time-consuming and error-prone procedures in your workflow will help you save time and reduce the risk of errors. Humans are one of the most expensive operational expenditures for warehouses, yet they are an essential input. It’s tough to decide how to manage labour without a clear vision for your company’s future orientation. If resources are limited, which tasks should be automated or streamlined? Then respond based on the direction of your company.

So far, we’ve covered five fundamentals for warehouse management that are both successful and lucrative. Although putting all of these pillars, processes, and procedures in place can be overwhelming, I can assure you that it is not impossible — many have previously done so.

Begin by writing out a vision, outlining priorities, and breaking down steps into manageable chunks. People will feel more successful in accomplishing the vision in this manner, which will improve morale and productivity in the warehouse.

Speedrack offers an extensive variety of warehouse storage products online. They are committed to providing the lowest prices on high-quality products from some of Australia’s most well-known manufacturers. From pallet racking to long-span shelving we offer products suiting your storeroom, offices, and archives. Get Standard Stocked Products quickly, or customise them to your desired size and colour all across Australia.