5 Tips to Improve Your Warehouse Efficiency

03.10.2024

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5 Tips to Improve Your Warehouse Efficiency

Improving warehouse efficiency isn’t just about going faster or squeezing more stock into the same space. It starts with knowing how you’re going to measure efficiency. Going faster might allow you to serve more customers, but there could be a higher level of stock loss and damage. Which factor is more important to you?

It’s important to be clear about this, because there are several different ways to identify whether changes to warehouse operations are improving efficiency. The most commonly used measures are:

  • Reduced operating costs
  • Improved customer service
  • More effective inventory management
  • Increased productivity
  • More effective tracking of stock

 

The ideal is to improve all of these at the same time – to do more while spending less money. A well-run warehouse operation will improve customer satisfaction, while improving staff wellbeing and reducing costs. This can be achieved by actions such as maximising the warehouse space and streamlining how staff operate. The outcome is enhanced productivity and a more efficient warehouse.

1. Optimise Warehouse Storage

The most effective way to improve your warehouse’s efficiency is by optimising its storage space. This is possible by increasing storage capacity and installing storage systems to utilise untapped space. By installing different products, your warehouse can do this effectively and ensure efficiency for all members of staff.

Three of the best ways to optimise warehouse space is by installing mezzanine floors, integrating warehouse robotics, pallet racking, and shelving.

Install Mezzanine Floors

Installing a mezzanine floor means you create more space in your warehouse, without having to move properties. That’s why they’re often a cost-effective option for a variety of industries. They will also increase the value of your property in the long-term, as well as efficiency right now.

A mezzanine floor is built between two main floors in a building or its floor and ceiling. This intermediate flooring utilises the free vertical space within a property. So even if your warehouse’s floor space is full, mezzanine floors create more storage above the existing space.

Mezzanine floors support the integration of different elements of your business with one another. This improves efficiency as collaboration is easier, storage is simpler, and order picking is faster.

Integrating Warehouse Robotics

Another highly effective way to optimise warehouse storage and improve efficiency is through the integration of warehouse robotics. Robotics solutions can automate a variety of tasks, helping warehouses maximize space utilisation, increase productivity, and reduce errors.

Robotics can enhance vertical storage by utilising automated storage and retrieval systems (AS/RS), which efficiently manage high-density vertical space. Robots also streamline inventory management by automating stock checks, ensuring accuracy and reducing the need for manual intervention. Additionally, Autonomous Mobile Robots (AMRs) improve product movement, transporting goods efficiently within the warehouse and optimising space usage by minimising human traffic in aisles.

Implement Pallet Racking

Pallet racking is a storage system where products are stored on pallets. There are many different forms of pallet racking, however, all forms utilise horizontal rows on multiple levels. They improve warehouse efficiency by optimising space, making order picking more convenient, and increasing staff safety.

Different types of pallet racking will store products in various ways. For example, double deep racking stores items two deep. Other options require specialist picking equipment, rather than a forklift, because of the high-density storage they provide. Whatever racking system you install will increase storage space, both vertically and on the warehouse floor.

Improving the Shelving

Installing industry-leading shelving will transform your warehouse’s efficiency. Where they’re different from racking systems as items are often picked from shelving by hand, while racking may require mechanical equipment to retrieve products. Utilising shelving in an effective installation improves your warehouse’s storage space, service speed, and allows you to store items you may not have been able to before.

Heavy-duty shelving can hold large products securely. They also make the order picking process more convenient for staff to remove the item. Shelving can also be designed and installed based on your warehouse’s needs, which allows you to improve areas where there is a lack of efficiency.

2. Improved Application of Software

Installing high-quality, effective software will improve your warehouse efficiency. Warehouse management systems are a great example of this software. These systems are management software applications designed for ease of use, to support your staff, and optimise how you operate.

A warehouse management system (WMS) supports staff to supervise the logistics and operations of a business. There are three main types of WMSs: Standalone, Cloud, and Integrated, which is a hybrid of cloud and standalone systems. This management software monitors inventory levels, organises the placement of incoming goods, and optimises the picking of inventory. It also performs demand forecasting, advising on inventory control to inform staff when to restock your warehouse.

 

When choosing a WMS, it’s important to analyse your warehouse’s requirements. Plan for the future and install software that can scale as your organisation grows. Here are examples of standalone and cloud-based WMSs:

Standalone WMS

This system can be combined with existing or future software. Its functions include expiry date tracking, barcode scanning, cycle counting, receiving and putting away items, slotting, picking, and shipping purchase orders. The system is ideal for SME businesses, however, it may not integrate effectively with other software.

Cloud-Based WMS

This system is a web-based software as a service (SaaS) that uses cloud computing technology. Using the cloud ensures improved flexibility, scalability, and security. Disaster recovery is also a massive benefit as you remove the risk of data loss or damage from cyberattacks.

Your choice of WMS should also take into account the useability of the software. This includes both the frontend and backend – the interfaces your team will use in the warehouse itself, and those used by the team who perform software maintenance. You should also take into account how much software development is required for the system to deliver what you need, and how any custom development will be supported going forward. A system that delivers improved efficiency, but costs more to maintain and update, might not help meet your goals for overall efficiency.

3. Overall Warehouse Layout and Design

When you’re thinking of ways to improve your warehouse efficiency, ask yourself: is your warehouse designed around your current processes? Your warehouse’s layout and design should support your staff in their roles. The design should also be set up in an optimal way to match the requirements of your business.

The most effective way to create a warehouse layout to enhance how your business operates is by using simulation and virtualisation. At SEC Storage, our team offers in-depth data analysis that drives warehouse innovation.

This service involves our staff working with our clients to analyse operational data. Once we have accumulated enough data, our team will implement measures to improve your warehouse’s current operations. We then create long-term strategies to manage growth and future-proof your organisation.

Our analysis focuses on types of products, stock volume, the supply chain, and storage capacity. We will also discuss any problems your staff commonly have to deal with, so we can find the right solution that improves your warehouse’s efficiency. Any strategies we implement are based on providing efficient warehouse storage and a high ROI.

4. Staff Incentive Plans

Your staff are a vital part of your warehouse process. They have the experience and skills that can make a significant difference to how your warehouse operates. This is why new software, storage systems, and technology can be effective, however, staff incentives can also improve warehouse efficiency. Once you have an efficient process, encourage staff to follow it through incentive plans such as offering prizes for meeting certain targets and reward staff while encouraging others to improve their performance.

Creating a structured bonus plan could ensure everyone understands the prizes and provide the opportunity to highlight deserving employees. Staff incentive plans encourage people to learn and follow the processes thoroughly, which will lead to improved warehouse efficiency.

5. Staff Training

To ensure your workplace’s processes are followed, it’s important that staff are fully trained. Create a structured training plan for new staff members. This allows business owners to monitor staff’s performance and offer support where necessary.

Staff training is especially important when installing new systems and software to improve warehouse efficiency. All staff must understand the processes, so they can use them effectively.
At SEC Storage, data drives the intelligent modern warehouse designs we create, supply, and install. Every aspect of the warehouse installations our team delivers is tailored to our clients. Our designs focus on improving warehouse efficiency with features such as bespoke mezzanine floors, pallet racking, and warehouse management systems.

For cost-effective bespoke warehouse designs that improve operational efficiency, fill in an enquiry form.

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