Improving warehouse efficiency involves making changes to your daily operations, but if you change too many things it can backfire and end up decreasing productivity and efficiency. There are many variables affecting the efficiency of your warehouse from labor to scheduling to to your workload – where do you start making changes to improve your warehouse efficiency?
Measure and Manage Critical KPIs
Before you know whether or not your warehouse is reaching your key business objectives you need to first determine what your KPIs (key performance indicators) are. When you have established goals you can measure how effectively you are achieving them, or not, and which areas you need to focus your improvement efforts on for the biggest impact.
Invest in an Experienced Warehouse Manager
Experienced warehouse managers can increase efficiency across all areas of the business, including:
- Creating and managing a warehouse inventory management system
- Optimizing warehouse storage for products
- Ensuring good employee morale
- Establishing processes for prompt order fulfillment
- Finding technologies and procedures to save time in daily operations to improve performance lower labor costs
Have Employees Contribute
Many warehouse leaders make the mistake of failing to include the warehouse employees in discussions for improving warehouse productivity and efficiency. Employees are intimately involved in the daily process for the organization and can offer insight into areas that could be improved. Have a monthly meeting to discuss improvement ideas with the entire team and consider implementing new procedures based on the information gathered from the meeting.
Update Your Warehouse ERP Solution
If you’re operating with an older ERP solution you are probably missing out on a number of features provided with modern ERP systems that can improve your warehouse efficiency. Whether you go with a cloud-based ERP solution or an on-premise solution, upgrading your ERP will allow you to integrate with all of your business applications and take advantage of the many benefits of modernizing your warehouse technology.