7 Effective Ways to Optimize Your Warehouse Processing


Today warehousing became the most important part of every business either it’s small, mid or a very big. Having a warehouse in big cities costs you very much in terms of skyrocket property prices and a messy warehouse may damage your business and profit as well. As per Forbes report, Amazon ships 2.5 billion packages a year, to do so, you need a professional and proper design of your warehouse and adequate inventory management will give you peace of mind along with cost cut, ultimately it will turn your balance sheet in the green zone.

Today, I will discuss each warehouse process in order to understand and effectively optimize your operations. After each process is explained, general recommendations to optimize each one will be discussed, and in-depth optimization resources will be linked for your convenience.

7 Effective Ways to Optimize Your Warehouse Processes

1. Receiving in Warehouse

Receiving is the first warehouse process and one of the most crucial. To perform the receiving process properly, the warehouse should be able to verify that it has received the right product, in the right quantity, in the right condition, and at the right time. Failing to do so will have consequent impacts on all subsequent operations.

The act of handling products into a warehouse and onto a system. Receipts may be for single products, objects, liters, cartons, packets, crates, kilograms, or full pallets. Items may be large such as pallets, or as small as a split pin. The best way to receive products is via an Advance Shipping Notice (ASN) from a supplier. With this information on the system, operators can scan consignment bar codes to bring up the ASN. If the delivery matches the ASN, then goods can be system-received. But at this point, they are still at staging, albeit ready for put-away. Some systems allow for goods to be received into inventory at this point, whereas others require the goods to be delivered to a specific stock location before inventory is updated. This depends entirely on the customer requirements and how the system is set up.

Receiving also involves the transfer of responsibility for the goods to the warehouse.This places accountability on the warehouse for maintaining the condition of the goods until they are shipped. Properly receiving cargo will allow you to filter out damaged goods and avoid liability for them.

How to Optimize:
The aim of optimizing the warehouse receiving process is to receive cargo efficiently and correctly and to avoid accumulation at the receiving docks. Solutions such as power pallet trucks and conveyors will allow you to unload cargo and clear dock areas faster and more efficiently. In addition, dimensioners automate the capture of weight and dimensions of parcels and pallets to accelerate your receiving processing and obtain certified measurements. Finally, software such as labor management systems and dock schedulers allow you to properly allocate the right amount of personnel by accurately anticipating upcoming shipments.
Top techniques to optimize your warehouses receiving process in order to make it as smooth and error-free as possible, so that your customers are never without product.

  1. Compile the Correct Metrics
  2. Pre-Receiving
  3. Labor and Booking
  4. Shipment Identification
  5. Product Count
  6. Product Inspection
  7. Receiving Documentation
  8. Label Correctly
  9. Error-Ready Replenishment Process
  10. Be Thorough with the Inspection

Lesson: Organize ASN on your system for automatic receiving and put-away. Ideally, use RF equipment for scanning and updating your management systems.

2. Put-Away

A good system will prompt put-away staff with a note indicating that stock is in staging waiting to be transported to a storage location. The process commences when operators accept the put-away task from the Enterprise Resource Program(ERP) or Warehouse Management System (WMS), and then scanning the relevant bar code of goods to be put away. If there is no bar code, then a manual entry can confirm that the goods have been identified. At this point, the system will be directing the put-away staff to deliver goods to the relevant storage location.Once at the location, the operator will either scan the relevant stock location bar code or manually confirm that the correct location has been found, then place the goods into the slot before confirming that the put-away process is complete.

When goods are put away properly, there are several benefits

  • Cargo is stored faster and more efficiently.
  • Travel time is minimized.
  • Safety of goods and employees is ensured.
  • Warehouse space utilization is maximized.
  • Cargo is easier and faster to find, track, and retrieve