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4 Aspects Of Warehouse Efficiency

Your warehouse does not have all of the space in the world. In order for your warehouse to be efficient and turn a profit, you have to make the best use of your warehouse’s available space. Your warehouse’s efficiency is very closely linked to the profit you are trying to turn, so you must carefully analyze the key factors when it comes to warehouse efficiency. Here are four factors for you to measure to determine how efficient your warehouse is. Even the smallest delays in these steps could be costing you time as well as money since one small delay can lead to even more delays in processes.

Product Turnover Time. Take into account your product turnover time, or the time it takes for a product to be sent out of your warehouse to the customer after it has arrived in your warehouse. A slow product turnover time means these products are taking up space in your warehouse which could be better used for products which fly off the shelves more quickly. Products which sit on shelves for too long cost you money and limit the amount of other products you can move through your warehouse.

Unloading And Recording Product. Unloading products when they arrive and recording them as they come in takes up a good amount of time in your warehouse as well. A slow unloading time will create a bottleneck of the goods. You cannot move any goods until they are actually in the warehouse, so the time it takes to unload your delivery is important. Keep in mind the organization of your warehouse and the lift devices you are using in order to keep your unloading process efficient.

Organizing And Storing Deliveries. After you have unloaded your delivery, it is time to determine where your products belong and how they are to be organized. Your storage setup is the main factor in how efficiently you can organize your incoming products. Be sure your racking system is well suited for your product needs. A poor racking system will have an effect on your product turnover and consequently cost you time and money.

Processing Orders. The actual receipt and processing of orders is the final stage in your warehouse product turnover. Take into account the time it costs to receive and order, send it to the warehouse, pick the product from the shelf, and send the product out for delivery. Each of these processes have an effect on one another since if one step is delayed, the rest will consequently be delayed.

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