Are you looking critically at your warehouse and wondering how it could be costing you money?  You're not alone! In fact, 64% of executives say that supply management is a priority for their business. The overall efficiency of your warehouse depends on a variety of factors and can affect your bottom line. Below we'll cover 5 tips to help you identify problems and improve your company warehouse efficiency!

#1 Understand Your Layout and Processes

Let's start by improving the state of your warehouse operations. It's important to have a firm analysis of your current processes.  What is the layout of your warehouse? How are teams organized? How do inputs and outputs move through the warehouse? Where does the process slow down? These are important questions to ask. Seek feedback from your laborers and floor managers. This will help get a high-level overview of how to streamline processes.

#2 Consider Human Resources

Speaking of soliciting feedback from employees, human resources can also affect warehouse efficiency.  Do you have enough staff? Are people properly trained and are production units organized to work together?  Assess your employees. It can help you to work through any bottlenecks related to user error.

#3 Forecasting Can Improve Warehouse Efficiency

Most businesses experience periods of high and low volume, often varying by season.  For example, many manufacturers see an increased demand in Q4 with the approach of the holiday season.  Putting systems in place can help businesses to plan ahead on how to manage resources, coordinate staff shifts, and utilize space during periods of strain or slowed workload.

#4 Better Inventory Management

Systems are also helpful in managing inventory. Put a real-time stock management system in place. This can help you keep track of every shipment, whether incoming or outgoing.  Overstocking of inventory can be a detriment to most businesses. This is especially true for warehouses stocking perishable goods. These items can spoil and cut into the bottom line.  Inventory management should be one of the first places to analyze for efficiency.

#5 Third-Party Fulfillment

If fulfillment is an issue within your warehouse, third-party fulfillment is an option that should be considered.  Depending on the size of the company, third-party fulfillment can be a cost-effective way to increase output without high internal costs.  Seeing growth but not ready to invest in new warehouse space or systems? Third-party fulfillment would allow you to focus on other aspects of the business.  For example, instead of investing capital into new facilities, you could increase marketing or merchandise spend by outsourcing fulfillment.

Get Started Today!

With these 5 ideas in mind, you can begin to troubleshoot issues within your warehouse and create a more productive work environment!

• Check out our blog for more tips on running your business more efficiently!
• If you're seeking staffing assistance for your warehouse, let's partner up to find the top talent!

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