The Importance of Warehousing in a Logistics System

Many companies that produce, purchase, sell, or ship products need warehousing. You may
consider it a waste of money, but it will potentially save you money and increase your
productivity. When a customer places an order, the journey does not stop. A warehouse
allows you to keep closer track of your supplies and assures that consumers collect their
orders on schedule, resulting in higher revenues.

Better Inventory Management

Around 8% of small companies do not keep track of their inventory. Just about a quarter of
businesses have some inventory at all. This sometimes results in late orders, order delivery
delays, and a negative customer experience. Warehouses keep the items in one place, making
it easy to monitor and maintain your product. You'll be able to stock, ship, and sell goods
more effectively if you invest in a warehouse.

More Efficient Packing and Processing

Most warehouses provide the equipment and supplies you need to store, move,
package and process orders from customers. Pallet racks, loading docks and packing
materials are just a few to mention. This way, an individual will have everything in one
place, which will save you time and money. A warehouse enables businesses to pack and
grade their goods according to legal requirements and customer needs.

Superior Customer Service

More than 63% of online consumers hope to know when their order will arrive, whether it
is expected or guaranteed. About 88 percent of respondents will be willing to spend extra
for quicker shipping. In fact, one of the first factors customers consider when selecting a
shipping carrier is delivery speed.

Warehousing enables on-time output and efficient logistics, resulting in higher labour
efficiency and higher customer loyalty. It also aids in the reduction of order fulfilment
errors and loss. It also protects the products from being misplaced or robbed during
transport.

Ensure Price Stabilization

Customers' wages, government policy, job rates, climatic conditions, and other factors all
influence demand for goods and services from month to month and year to year. When
demand is strong, you can store the goods in a warehouse and sell them later. This
contributes to price stability and lowers sales losses.

Let's imagine you own a business that makes and sells athletic equipment. If they sell ski
accessories, you can stock them in your warehouse rather than selling them for pennies on
the dollar until the cold season is over. You'll be able to keep stable stock levels and
increase the earnings this way.

Improved Risk Management

Customers' wages, government policy, job rates, climatic conditions, and other factors all
influence demand for goods and services from month to month and year to year. When
demand is strong, you can store the goods in a warehouse and sell them later. This
contributes to price stability and lowers sales losses.

Let's imagine you own a business that makes and sells athletic equipment. If they sell ski
accessories, you can stock them in your warehouse rather than selling them for pennies on
the dollar until the cold season is over.This means that you have  higher chances to
receive compensation from your insurance company in case of damage, fire or theft

The six fundamental warehouse processes comprise receiving, putaway, storage, picking,
packing, and shipping. Optimizing these six processes will allow you to streamline your
warehouse operation, reduce cost & errors, and achieve a higher perfect order rate.
Packing
Packing is the wholesale method of combining and preparing selected goods in a purchase
order for shipping to the customer. One of the most important aspects of packaging is
minimising loss by the moment products exit the factory. Furthermore, packaging must be
compact enough not to add to the weight of the products and low enough to keep packaging
costs under check.

Warehouse administrators are constantly looking for creative and imaginative ways to
enhance their procedures and increase the efficiency of their activities. Improved
productivity, faster customer experience, and increased performance are all examples of
increased quality.

Measure the Key Performance Indicators

There's no way to tell whether improvements you make are improving your productivity if
your company doesn't have organisational performance requirements. Key Performance
Indicators (KPIs) are internal standards that enable an organisation to keep track of its
performance over time. You will monitor your success and compare it to industry
benchmarks by creating them.

Many aspects of the packaging process can be quantified. Here are four main performance
indicators (KPIs) to consider when assessing efficiency and performance:

• Number of cartons packed every hour

• Labour cost

• Amount of packaging content used

• Packing loss percentage

Cut Down on the Number of Touches

Unnecessary movement wreaks havoc on operations. Examining the packaging process and
eliminating unwanted movement or "touches" is one way to improve warehouse quality.
Examine the procedures' moves. You will help employees make greater use of their time and
increase productivity by streamlining the steps and reducing the amount of touches involved.

Add End-of-Line Automation to Improve Warehouse Packing Efficiency

Automation has revolutionized the manufacturing process. Goods are now

assembled in a fraction of the time previously required, thanks to the automation of
manufacturing. Similar improvements in efficiency can be achieved by incorporating
automation in your end-of-line packing processes.

The Benefits of Water-Activated Tape for Warehouses Looking to Improve Efficiency

If your packers are using hand-held tape guns dispensing plastic, pressure-sensitive
tape to seal packages, your company is missing an opportunity to reduce the
number of touches. Several passes of pressure-sensitive tape are often used to try
to adequately seal cartons.In comparison, by using water-activated tape, a single
strip of water-activated tape is sufficient to create a strong and secure seal. If your
staff is using three passes of pressure-sensitive tape to seal cartons (representing 3
touches), making the switch to water-activated tape will reduce the number of
touches by 2/3, and greatly reduce the time spent sealing each carton that leaves
your warehouse.

To use water-activated tape efficiently, you need a water-activated tape dispenser to

wet and cut the tape. These machines come in both manual and electric models. If
you are packing at least 50 cartons per day, you will realize the greatest efficiency by
using an electric water-activated tape dispenser. These machines automatically
dispense a choice of pre-set tape lengths required to seal each carton and further
boost packer productivity. Shifting to water-activated tape will also reduce the
amount of packing material used for every order shipped. Your packers also benefit
from using water-activated tape, for eliminating the tape gun means less fatigue and
less risk of repetitive stress injury.

Principles of Warehouse Layout Design

Considering the principles below can help you design an efficient layout and streamline
warehouse operations. Here are some of the most crucial factors to consider:

Budget Considerations

Before starting with the design of your warehouse layout, it is essential to assess all your
business requirements, review associated budgets, and then plan the layout accordingly.
During this process, you might come across some layout designs that are more
comprehensive and expensive than others, but it is recommended that you consider the most
suitable and cost-efficient solution for your warehouse.

Space Available

Effectively utilizing the warehouse space available can help improve inventory visibility,
reduce travel time, and increase overall operational efficiency. When designing your
warehouse layout, it is crucial to allocate maximum space to storage and inventory processing
purposes while minimizing space for office areas, empty pallets, charging stations, etc.
Additionally, how you decide to allocate space will impact shelving designs, installation
capacity, and placement of goods inside your facility.

Source: Flipkart Tech Blog

  

Flow
Ensuring the uninterrupted flow of goods, personnel, and equipment is vital to consider in the
design layout for the smooth functioning of your warehouse. You can avoid inefficient routes
and disruptions by strategically planning your warehouse layout design so as to facilitate each
operation in a sequential manner.

Accessibility
While planning your warehouse layout, it is crucial to ensure easy accessibility to all the
areas and products in your facility. The layout should be designed in a way that makes it easy
for personnel to navigate throughout the facility while conveniently locating and picking
items without having to move other products. As a result, your productivity can be enhanced
and orders can be fulfilled at a faster rate.

Equipment
The use of different types of equipment in your warehouse, such as lifting & packing tools,
pallet racks, or conveyors, can influence the layout design. By identifying the equipment
needed, one can evaluate and design the most suitable layout according to your requirements
and boost the productivity of your facility.