Specifically, the survey found that mid-sized warehouses (approximately 50 workers) lose almost 3,000 hours a year due to workforce inefficiencies. Additionally, while 89 percent of those surveyed indicated that new technology could help managers recoup these inefficiencies, only 70 percent had conducted a thorough review of practices in the warehouse in the past year.

In this post, we’ll identify four strategies to help evaluate your warehouse operations and eliminate redundant, ineffective processes.

1) Maintain a Thorough Process Log of Any and All Changes

While it’s common to keep track of inventory error rates, many warehouse managers fail to take advantage of the insight within these metrics. While they certainly do point to problems, error rates are best utilized when seen as indicators of systematic failures within your organization.

The best way to pinpoint these failure points is to meticulously log any changes in training procedures, new workers, new technology implemented, making use of inventory software or other changes within your warehouse. The ability to put these changes on a time scale is the difference from the ability to be proactive and reactive when analyzing error rates.

2) Emphasize Processes that Reinforce Accountability

When creating a procedure or process in your warehouse, the benefits realized in these methods are lost when workers circumvent the system or create work-arounds. All too often, a mistake made at the start of the picking process isn’t a big concern for the perpetrator–they know that someone down the line, likely a packer, will fix the problem for them.

Create a workflow within your organization that creates accountability, but also puts an emphasis on the importance of accuracy. For example, create an area for packers to place errant inventory, and ask them to notify pickers of the mistake rather than fixing it themselves. The near-term losses in efficiency will be regained in the long-term with workers that are more attentive to the little things.

3) Offer Profit-Sharing (in Addition to Extended Education)

A profit-sharing program is popular strategy that entices workers to care more about performance and accuracy. For example, if a warehouse sees a 40 percent increase in productivity which leads to a 12 percent increase in profits, the warehouse workers will share some of these gains. This in-turn leads to more productivity from workers, and thus even further increases in profits.

Businesses can make these programs more effective, however, by offering extended education courses and meetings for their workers. This has two main benefits. First, these courses show workers their importance to the business, leading to more empathy among workers and a natural boost to performance via increased morale. Second, it can show warehouse workers how their jobs are related to the business as a whole–and thus reduce mistakes due to carelessness.

4) Have Leadership on the Floor

Regardless of the amount of effort you put into streamlining the warehouse, redundancies and unnecessary activities will arise over time. It’s just the nature of the beast. And the repetitive nature of many warehouse responsibilities make these habits not only hard to solve, but hard to discover until it becomes a big problem.

One method to help identify these tendencies quickly is to have an outsider look-in–namely, a member of your company’s leadership can help just by walking the warehouse floor. When doing so, ask your leaders to question “why” things are being done, more so than “how.” Having eyes that aren’t entrenched in the day-to-day is a helpful way to root-out strange practices.

For more details on these strategies and other helpful suggestions to improve the warehouse, check out Warehouse Management System Guide for Software Advice’s Strategies to Boost Your Warehouse Workforce’s Efficiency

Checklists for put away operations

1. Is an adequate inspection made to the condition (such as damage, wet, contaminate, leakage) of incoming items?

2. Are items properly packaged?

3. Are open or damaged items being recorded and segregated?

4. Are open or damaged items removed from stacks and repacked?

5. Are put away methods best suited to the characteristics of the storage areas?

6. Are items following stock rotation rules such as FIFO or FILO. Well-planned stacking with easy access makes this rule easier to apply.

7. Are items of similar categories grouped together for better accessibility?

8. Are stored items adequately and accurately marked for proper identification and easily located?

9. Does the storage plan permit flexibility of operations and provide for adequate small-lot storage space?

10. Are hazardous and flammable items being stored separately?

11. Are items stacked correctly to ensure the greatest safety to personnel, protection of material and accessibility? Are stacking instructions being followed?

12. Is stacking up to reasonable height, adequate clearance for better accessibility as per storage layout plan?

13. Is space sufficient between stacking to allow better ventilation especially stack and the roof?

14. Are items which are not palletised being raised off the floor by use of dunnage?

15. Are packing, crating and other preparations for shipment adequate?

16. Are adequate and proper steps taken to care and preserve storage items?

After we release v3.3.1, we have collected many comments from our customers / users. We love this kind of interactions and along the way, we’ve learned from the user point of view on how to make our eStockCard Inventory Software even better and user friendly. We appreciate all the feedback and support from you.

What we have enhanced?

1. Enhance the Stock Edit screen by disable all the quantity adjustment columns.
2. Able to use custom information (customer and supplier) in document and screen:- SalesQuotation, Sales Order, Sales Picking, Packing, Shipping, Delivery Order, Invoice, Receive Payment, Sales Return, Cash Sales, Purchase Order, Goods Receiving, Purchase Bill, Purchase Payment and Goods Return.
3. Able to display custom information (customer and supplier) in reports: Sales By Item Details, Sales Invoice Summary, Sales Delivery Order Summary, Sales Order Summary, Sales Picking Summary, Sales Picking Details, Sales Packing Summary, Sales Picking Summary, Purchase Order Summary, Good Receiving Summary, Purchase Bill Summary, Purchase Bill Details, Supplier Payment Summary, Supplier Payment Details and Good Return Summary.
4. Add ‘Diagnose Mode’. It will write log file when enabled in Settings (For eStockCard v3 Mobile.
5. Add ability to change settings when program is running. Previously only can edit url and cannot change without manually delete config file (For eStockCard v3 Mobile).

For Mobile Edition

1. Add ‘Diagnose Mode’. It will write log file when enabled in Settings
2. Add ability to change settings when program is running. Previously only can edit URL and cannot change without manually delete config file

What are the bugs that we have fixed?

1. Fixed Duplicate Customer/Supplier when enter existing code in Add Info screen.
2. Fixed Cycle Count transaction to be inserted into Good Movement Details report based on the Operation Setting.
3. Fixed Confirm Cash Sales failed when it is NO RULE item.
4. Fixed change the item description at Stock Edit screen.

For Mobile Edition

1. Fixed time out issue for eStockCard v3 Mobile.

As usual, if you encounter any problem, feel free to email back to us. Thank you.

It can be one of the most complicated functions in warehouse processes. Errors in receiving operations may result many ripple effects. Production department may use the wrong items or insufficient of quantities. Purchasing department will encounter what they purchased are not what they received. Accounting department may overpay for any shortfall quantity.

Checklists for receiving operations :-

1. Are receiving documents (Purchase Order or Requisition, Delivery Order, Packing Lists) available at the time when shipments are received?

2. Are standard operating procedures or working instructions available when inspections are performed and checked?

3. Are items checked for descriptions, quantity and condition at the arrival of shipment and before accepting the bill of lading and completing the receiving report?

4. Are vendor compliance standards and procedures being followed during receiving?

5. Any non-conformance issue being recorded and update into vendor tracking and history records?

6. Are receiving reports and documents being processed properly for data entry?

7. Are unprocessed or backlog items being recorded and monitored?

8. Are materials handling equipments in good working condition?

9. Are receiving space, dock, and pallets for receipts sufficient and in order?

A list of the top ten ways to get this done is provided:

1. Pack everything you currently have stored in a more organized and concrete fashion, and only use space that is absolutely needed for these items.
2. Assess everything already placed in the warehouse carefully and reorganize each item based on type and use so that they can be found and accessed.
3. Maintain the items you have in the warehouse logically and neatly so everything is placed in a way that lessens obstacles people may travel through.
4. Convert existing space into usable locations that inventory can be placed by marking off these areas for later use when needed.
5. Alter any parts of the building that can be easily changed such as shelving units and inventory racks in a way that fully maximizes their individual placement.
6. Remove unneeded items from the building to increase the overall space available, and to more logically organize everything inside it.
7. Work with a qualified contractor that specializes in space management for warehouses to fully understand how to change the layout in a way that increases space.
8. Design the interior with the help of inventory software to find space that can be completely optimized to the benefit of the objectives in mind.
9. Use an inventory management system to help better organize the layout of the warehouse, and move unneeded items to areas of the building that rarely get used.
10. Change the placement of key components located in the warehouse such as racking units and storage shelves to a location that makes full use of their storage capabilities.

Each method listed can be altered or customized to your needs and changed accordingly based on how you want your infrastructure organized and maintained. If you maximize the space in your buildings with inventory software tools along with natural logic, you end up with a greater investment, a more efficient workplace and overall ability to get things done.

A critical first step for improving productivity and reducing costs is to conducting warehouse operation audits. Such an audit takes a quantitative and qualitative look at your warehouse operation’s productivity and accuracy, and does so in a systematic way.

A good operations audit enables you to measure warehouse productivity and other important metrics to identify patterns and trends. It also allows you to complete both internal and external comparisons. Once you gather the data and make comparisons, you’ll be able to draft an action plan for improvement.

The audit should consist of a method for evaluating your own operation against a set of internal expectations, as well as external, industry-accepted, best practices and averages Remember, you can’t improve something if you don’t measure it.

Using a list of predetermined checklists – for each area of the warehouse in your organization. Focus on labor, facilities, systems and workflow procedures. By analyzing your operation against your existing expectations, you can develop a basis of measurement for future actions.

The warehouse operations should cover the followings aspects :-

1. Warehouse Layout

2. Product/Inventory/Orders processing

3. Receiving

4. Storing

5. Material Handling Equipments

6. Housekeeping

7. Safety

8. Inventory Control System

After 6 months of implementation of Chronos eStockCard Inventory Management Software, their warehouse operations have been drastically improved. Below are the key data to share :-

1. General Information

• Warehouse area : 80’ x 120’
• Number of storage rack : 24 (4-layers)
• Number of products : 500+
• Number of staffs : 4
• Average searching time per item : ~ 10 min
• Frequency of stock take per annum : 6 times
• Previous practices : Accounting based stock control software + Manual record (stock card + book)

2. Major problems

• Inaccurate data, due to mismatching between computer data and manual data. Time lapse between operation and data entering.
• Slow and inefficient searching for products.

3. Solutions

• Re-organize warehouse layout & Proper identification of storage rack.
• Implementing eStockCard.

4. Results

• Reliable inventory information at finger tips.
• Average searching time per item : less than 30 seconds.
• Frequency of stock take per annum : 2 times.
• Number of staffs : 2 (due to natural attrition but no replacement).

5. Learning cycle

• Less than a week.

1. Major Issues
   1. There are approximately 500+ assets need to be monitored.
   2. Assets will be flowed among/within/cross several departments
      • Receiving – New purchase, Consignment from customers or vendors
      • Issuing – Production, Internal Calibration, Maintenance and Repair
      • Transfer – Obsolescence
      • Outgoing – External Calibration/Repair, Scrap Sales, Return (consignment)

   3. Bad traceability – WHERE, WHEN, WHO, WHAT, QUANTITY, AVAILABILITY
   4. Fail to calibrate certain equipments.
   5. Ineffective system to monitor all the assets (Using spreadsheet).
   6. Failure to comply with ISO due to poor traceability of assets (especially for those assets require calibration)
2. How eStockCard can assist
   1. IN and OUT operation can help to record detailed movements of any single item – resolve where, when, who within department or cross departments.
   2. For any item which is NOT suitable to be used in production (due for calibration, repair, out of spec), LOCK operation to prevent this accidentally being released.
   3. For any calibrated item, due date can be pre-defined and monitor through alert system.
   4. Powerful reporting which is capable to provide comprehensive, timely information of all assets.

Upon goods received from supplier, eStockCard assign an unique Serial No. for it, and system starts to track its movements, usage, transactions etc using this unique Serial No.

Apart from Inventory Tracking purpose, eStockCard allows user to print barcode label based on this unique Serial No. information and stick it on to the product. Store hand can scan this barcode label during picking and delivery. It makes inventory verification and control simple and easier for store hand. This will eliminate operation errors drastically.

• Condition of cleanliness
• Condition of security
• Condition of access
• Condition of drainage

2. The building

• Type of construction (wood, brick, metal or others) for walls, roofs, floors
• Dimension (Length, Width, Height)
• Capacity
• Ventilation
• Number of doors
• Electricity supplies
• Water supplies
• Air supplies

3. Condition of the building externally

• Cracks at the walls, buildings, roofs
• Sign of rodent

4. Condition of the building internally

• Cleanliness of the floor
• Sign of rodent
• Is the store waterproof
• Entry of birds, insects, animals

5. Basic warehouse equipments

• Fire extinguishers
• First aid box
• Ladders
• Tools and materials for simple store repair or maintenance and cleanliness