Do’s and Don’ts of Efficient Warehouse Management


1. It depends on warehouse management software.
Do pay money for a comprehensive and reliable warehouse management software program that offers versatility and user-friendly features for everyone in your plant. Efficient WMS, short for warehouse management system, relies on a comprehensive software program that incorporates all facets of warehouse operations. Decide which features are most important including inventory management, purchasing, shipping and tracking, report production, cost of good sold and similar areas. Efficient programs make managing the warehouse easier, more productive and provide a variety of ways to analyze current operations. Programs can also include list features that allow for vendor, customer and employee maintenance.

Don’t cut corners when buying any warehouse management software program. Some programs may offer low prices to bring customers in, but customers end up not receiving as much security as necessary. Features may be limited and cause an upset in properly managing the warehouse operations. Lower costs usually mean less technical support, which can lower productivity and efficiency throughout any warehouse. Instead, consider all features of a program before deciding whether the cost is worth it.

2. It depends on the firm’s workforce.
Efficient warehouse management depend on having a thorough understand of all employees and what they bring to the facility’s operations. Matching employees with duties that match skill sets and knowledge level will help improve productivity, motivation and confidence.

3. It depends on inventory.
How inventory is managed plays a crucial role in how efficient warehouse operations are. Firms must have a complete understanding of which inventory management procedure works best for them. Inventory must also be properly accounted for to give management a complete picture about how efficient the warehouse operations actually is. This includes keeping track of with everything from the smallest nail to completed items available for sale. Firms do need to keep track of inventory, from raw materials to completed items to be efficient. Do this by purchasing a strong WMS software program.

Do not make the mistake of believing warehouse operations can be efficient without a good inventory management system in place. Without proper inventory tracking, firms will be clueless about which products are profitable and which are loss leaders.

4. It depends on overhead.
Efficient warehouse operations depend upon lowering overhead costs without affecting the quality of work performance. Do this by using energy-efficient lighting, scheduling high production times during lower electrical cost periods, and lowering overtime costs.

Do not believe an efficient warehouse operations happens without taking overhead into consideration. Overhead plays a crucial role in any firm’s profitability, productivity costs and management’s business decisions.

5. It depends on the financial aspect.
Do understand that an efficient warehouse operations occurs due to management having a firm understanding of all the financial aspects involved. This is done by choosing high-quality products at budget-friendly prices from favorable vendors, eliminating loss leader products, producing more of high-profit items and keeping machinery and equipment in optimal operating condition to cut down on repair costs.

Do not believe that finances are left only to the accountants. Even when hiring an independent accounting firm, management must understand how the figures tie into warehouse operations. The management may take a beginning accounting class on how to read and understand financial statements.

Knowing the do’s and don’ts of efficient warehouse management can set firms apart from the competition. It takes time, knowledge of the firm and its needs, and development.