We’ve experienced a significant increase in demand here at Logistics Bureau for assistance in improving warehouse performance.

Below, we share some of the main warehousing management problems we are helping with.

Additionally, we provide simple warehouse solutions and some symptoms of poor warehouse performance to look out for.

Watch the video below to discover actionable steps to elevate your warehouse performance.

 

 

We’ve been fixing up a lot of warehouse performance issues over the last year or two. In this video, we’ll look at some of the causes of those issues, the symptoms and some of the solutions.

We’ve been looking at dozens of warehouses over the last year, a lot of consulting clients have been coming to us with issues around capacity and warehouse performance. Uh, too much stock, their costs are escalating. We’ve been spending a lot of time, a lot more than we normally would on warehouse audits, so I thought I’d share some of the sort of background to that and some of the things that we’re working on to help you sort out your warehouse problems. So why do some of these things come about?

 

Here are some of the Issues:

 

1. Running Out of Space

I think one of the key issues has been over the last couple of years that people come to us and say we’re running out of space. I saw a warehouse a couple of I had a flashback. I saw a warehouse a couple of weeks ago, which I have to say is probably the most full warehouse I have ever seen. That record was held by a warehouse in Malaysia that was at 115% capacity. This one, I think was more, this was at home in Australia. And typically people come to us because they’re running out of space, and they very often want us to design new warehouses or to redesign their current one. But where do you think you should actually look to first if you’re running out of warehouse space comes down to what you’re stocking ,your inventory policy and so on.

 

2. Performance

Performance is also an issue. I think we’ve seen a lot of over the last couple of years and it comes down to things like accuracy. So picking accuracy, inventory accuracy not necessarily the speed of picking, although I’ve seen some rather strange picking operations in the last few weeks as well, which were far from optimal.

 

3. Increasing Costs

The other thing that people come to us a lot for is increasing costs. And you know, until you lift the lid on the warehouse there could be all manner of things driving increased cost. It could be a change in order profiles, could be a change in products, could be a change in in the warehouse but look out for that as one of the symptoms. And that will enable you then to star lifting the hood on your own warehouse and checking out what’s going on below. 
So what are some of the solutions those are some of the reasons that people want to have a look at their warehouse and think they need to improve it.

 

What are some of the solutions?

 

1. Layout

Some simple ones can be layout. You know, depending how the product is moving through the warehouse. You can have three flow where it’s coming in on one side going into storage, going out on the other side, you can have L flows, all sorts of things. So the layout itself can have a really big impact on the performance of the warehouse, particularly around picking performance. The type of storage media as well can have a big impact. 

 

2. Processes

The other thing to look at is the processes; the picking processes. Are you actually doing goods to person? Have you actually got pickers going around the warehouse sort of old style? Also how you actually laying out the products in your warehouse? Because that has a huge impact on the pick path.

 

3. Inventory

Inventory! I’ve talked about the things to look at in terms of inventory and accuracy at a number of levels. So have you got the right levels of inventory? So your ABC analysis, so you’re carrying the right stock of the A, B’s and C’s and so on? And what about the inventory accuracy? Do you have instances where people are going to pick locations and there is no product there or insufficient product there? So that sort of indicates a bit of a cycle counting and process issue. And of course, that’s going to impact your picking accuracy as well. So inventory can be a big one. 

 

4. Slotting

This is something we’ve been doing quite a bit of lately. Slotting very simply is a method to reduce the pickers travel path. So if you’ve got people going into the storage area and picking area to pick products you have not bringing products to the pickers, you want to minimize that travel distance. And if you’re wondering what slotting is and how do you determine where to put those products in the warehouse, think of your fridge. I think it’s always a great analogy depending on what part of the world you are when you’re opening your fridge door, what’s in the door section? So for us here in Australia, it’s probably going to be things like milk, butter, eggs, the things that we go to frequently. In the back of the fridge is the stuff that we go to less frequently. That’s exactly how you should lay out your warehouse. Near the dispatch area is all the frequently used items, the equivalent of the milk and eggs and butter, and so on. And then as you go further back into the warehouse, the less frequently used items. Just by getting that right can enormously increase the productivity of a warehouse. 

 

So what are the symptoms of these issues?

 


Watch the full video above!


 

Related articles on this topic have appeared throughout our website, check them out:

 

 

Contact Rob O'Byrne
Best Regards,
Rob O’Byrne
Email: [email protected]
Phone: +61 417 417 307
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