20 Warehouse & Distribution Center

Best Practices for Your Supply Chain

 
Establishing and implementing best practices is the first step to reducing costs and
time wasted in your warehouse or distribution center. We picked the brains of
our supply chain engineers to find ways to improve warehouse and distribution
center efficiency to help you get started.

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DISTRIBUTION PRACTICES >

1. SET UP A VENDOR COMPLIANCE PROGRAM

Streamline for the Bottom Line

A vendor compliance program is an incredibly effective way to enhance the strategic

relationship between a business, it’s vendors and 3PL warehousing and distribution
providers. A well-thought-out compliance program can streamline warehouse
operations, reduce product handling, improve transportation service times and,
ultimately, increase customer satisfaction.

Integrating common product identification and tracking processes all the way
upstream to offshore or domestic vendors will help ensure proper visibility and the
seamless movement of product through the supply chain. Enforcing clear and
specific labeling requirements and standard case quantities for each shipment and
individual item can go a long way toward making warehouse and distribution center
operations more efficient. As with many optimization steps, small efficiencies add up
over time and make a huge difference in your bottom line.

Note: Businesses that run their supply chains effectively incentivize all parties
involved to contribute to a more efficient supply chain rather than just punish them
for non-compliance.

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2. INCREASE PRODUCTIVITY WITH WORKPLACE INCENTIVES

Savor the Fruits of Your Labor

Everyone likes to be recognized for their hard work — so much so that 78% of

employees report that they would work harder if they were better recognized for their
efforts. Considering the amount of manpower needed to operate warehouses and
distribution centers, workplace incentives present a valuable opportunity to motivate
employees and thereby increase productivity and boost the bottom line. From annual
bonuses to employee referral programs to company-hosted celebrations, there are
any number of ways to better incentivize your workforce and improve labor
efficiency.
3. ESTABLISH ADVANCED SHIPPING NOTIFICATION

Don’t Guess — Know

This one might seem like a no-brainer, but many distribution center still haven’t
implemented electronically transmitted advanced shipping notifications. Relying on
regular shipping and receiving schedules isn’t always a safe option — delays and
disruptions are a fact of life and can cause deviations in those schedules and issues
throughout the warehouse. By leveraging electronic advanced shipping notifications
within purchase order and inventory management functions, it’s possible to plan
labor with greater certainty. Order fulfillment and transportation can be adjusted to
ensure that proper service time requirements are met, and that transport modes are
optimized to keep costs down.

4. TAKE ADVANTAGE OF AUTOMATIC DATA COLLECTION

TECHNOLOGY

Eliminate Errors With Automation

Automatic data collection has advanced significantly in the past decade — far from
the days of writing down long numbers by hand or even keying them into a keyboard,
most warehouses and distribution centers now run RF barcode and RFID systems
that eliminate human error from the tracking process. Any step that can be
automated means one fewer step to manage — plus, automation enables you to
collect more timely and accurate data to make smarter supply chain decisions.

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5. MEASURE EVERYTHING

Capture and Manage Critical KPIs

There’s a saying in business that you can’t manage what you don’t measure; the
same is true for warehouses and distribution centers. Warehouse managers should
track key performance indicators such as inventory turnover, inventory accuracy, fill
rate, demand forecast and more to pinpoint inefficiencies. Warehouse managers
should also use metrics to define performance goals and share that information with
employees so they have a clear understanding of what they need to work toward.
Putting specific measures in place and providing employees with consistent
feedback is a surefire way to increase productivity and eliminate supply chain
inefficiencies.

6. USE A HANDS-FREE ORDER SELECTION PROCESS

Expedite Selection

New technologies such as wrist-mounted RF units, voice pick and pick- or put-to-
light order fulfillment systems go far beyond handheld scanners in terms of
accelerating the picking process. Wearable device technology, such as Google
Glass, has also made the tracking portion of the picking and order selection process
more intuitive.
 7. INVEST IN A WAREHOUSE MANAGEMENT SYSTEM

Optimize Warehouse Performance

Investing in a warehouse management system (WMS) is a simple, but effective way

to increase warehouse and distribution center efficiency. A WMS can increase
inventory visibility, reduce risk of demand volatility, strategically organize execution
systems, integrate systems and workflows and more to ensure peak warehouse and
distribution center performance. With cloud-based and SaaS options available,
there’s a WMS for every business and every warehouse.

8. GIVE VOICE-ENABLED TECHNOLOGY A TRY

Hands-Free Communication

Pick to voice warehouse systems have become popular in recent years for their
ability to improve picking accuracy. With voice picking, an employee on the
warehouse floor wears a headset through which they receive picking instructions
from the company’s WMS; this frees the employee from having to refer to paperwork
or other materials and enables them to concentrate on the task at hand, improving
picking accuracy and speed.

9. PREPLAN PICKING WAVES

Plan Ahead

 Rather than send pickers on the basis of order sequence, a Tier 1 WMS uses
technology to plan picking waves according to the most efficient routes. This
streamlines the picking process, which results in faster turnaround times on orders
and more efficient use of labor and manpower.

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10. IMPLEMENT LEAN WAREHOUSE MANAGEMENT

Eliminate Warehouse Waste

There are eight forms of warehouse and distribution center waste:

 Overproduction
 Over-processing
 Excess inventory
 Defective goods
 Conveyance
 Motion
 Knowledge
 Waiting

Each of these has the potential to create inefficiencies and therefore must be closely
monitored. Many warehouses and distribution centers have taken up the practice of
lean warehouse management in order to identify and eliminate non-valued-added
components and other inefficiencies from their supply chain. For example, a
company looking to implement lean warehouse management might consider storing
materials in a way that reduces the unnecessary transportation of supplies or
standardizing workflows to reduce order processing time.

11. RECORD EVERY MOVEMENT AS A TRANSACTION

Always Be Optimizing

Any movement or step in the process that can’t be tracked or recorded as a

transaction is either an unnecessary step that should be eliminated or something that
should be added to a “fix it” list. All turnbacks — that is, anything that causes a
deviation from the established system — should be reported so that issues can be
identified, and solutions can be found to make the overall process more efficient.

12. INVEST IN COMPREHENSIVE TRAINING

Set Employees up for Success

Technology is only as effective as the people using. If warehouse and distribution

center employees are unfamiliar with their company’s WMS or other assorted
warehouse systems, they won’t be able to utilize them for best results. Business
leaders should invest in comprehensive training that uses creative solutions such as
gamification and rewards systems to incentivize employee learning and that
prioritizes innovation and efficiency. To ensure the efficacy of existing training
modules and course materials, run pilot programs and solicit feedback from trainers
and trainees alike.

13. KEEP MULTIPLE LINES OF COMMUNICATION OPEN

Communicate More Effectively

The key to an efficient supply chain is good communication, which is why it’s vital
that warehouse managers provide all necessary information about each pick ticket or
shipment to warehouse and distribution center employees. By using multiple
channels of communication, such as phone calls and text messages, standardizing
messages, soliciting regular feedback and designating a point person to respond to
employees’ questions, warehouse managers can ensure more consistent and
effective communication.

14. MINIMIZE TOUCHES

Work Less, Do More

Picking directly to a shipping carton instead of an intermediate bin or tote is one way
to eliminate unnecessary steps in the distribution center process. When superfluous
steps are eliminated, the process becomes leaner and faster, customer relations
soar and bottom lines improve. Finding ways to improve your warehouse systems is
a key step to cutting costs in your distribution center.
 15. SCHEDULE SIMULTANEOUS SHIPMENTS

More Multitasking

Warehouses with multiple dock setups have an opportunity to streamline labor

offloading by scheduling shipments to arrive simultaneously. This prevents separate
setup and breakdowns at loading docks and consolidates the labor and time
necessary to load and unload shipments. Working with vendors to ensure that
deliveries are scheduled precisely and establishing clear metrics and a high-
performance culture all contribute to an expectation of timeliness that results in
overall increased efficiency.

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16. ORGANIZE INVENTORY MORE EFFICIENTLY

Everything in its Place

A truly efficient warehouse should run like a well-oiled machine — and in order for
that to happen, inventory should be organized in a way that makes it easy for
warehouse and distribution center employees to locate items and is conducive to
overall workflow.

To improve inventory organization, consider doing the following:

 Re-evaluating your warehouse layout design to account for flow, accessibility and
space
 Clearly labeling aisles, racks, work areas, individual items and safety hazards
 Using ABC analysis, with “A” being top-selling items, “B” being mid-range items
and “C” being the rest of your inventory, so that high-velocity items are easily
accessible
 Grouping like items to streamline picking and packing
 Storing inventory on vertical racks, thereby leaving more room for forklifts to
maneuver through aisles
 Conducting periodic audits and reviews to ensure that inventory organization
remains as efficient as possible, even amid changes to warehouse operations

17. PRACTICE ONGOING CYCLE COUNT

Simplify With Samples

Implementing an ongoing cycle count program in lieu of a regular full physical

inventory is another great way to reduce time and costs substantially. A regular full
physical inventory could halt operations or cause disruption in your warehouse. By
comparison, an ongoing cycle count program that samples various subsets of
inventory is a more effective way to gauge inventory accuracy with minimal
disruption. Focusing on the high-demand shipments will also ensure that crucial
items are consistently replenished.

18. USE CROSS-DOCKING

Remove the Middle Man

Although it requires a significant investment to set up, cross-docking more than pays
for itself in terms of time and money saved in larger distribution centers. With cross-
docking, products can be loaded from one transportation container to another,
completely bypassing warehousing and storage by sorting products in a staging area
before reloading them directly onto the next truck. Cross docking works well in fast
moving retail supply chains to optimize the flow of goods between large distribution
centers and store locations.

19. IMPLEMENT DYNAMIC SLOTTING

Arrange Smarter

Slotting your warehouse based on demand is an incredibly effective way to increase

distribution center efficiency. According to Tony Tyler, president and CEO of eF3
Systems, “Slotting choices should be performed dynamically rather than as a batch
process. To do this, you need to place the picks by product in one or more ‘look
ahead’ scheduled cycles or waves, usually to match the transportation schedule and
transit times.”

20. CONSISTENTLY RE-EVALUATE

Continuously Improve for the Future

Warehouses and distribution centers are in a constant state of flux, from the items
they have in stock to their inventory layouts, so it only makes sense to review
processes and procedures based on performance metrics to evaluate their
efficiency. Create a dedicated evaluation schedule in order to remain consistent and,
if changes need to be made, use this list of best practices as a guideline for future
improvements.

55 Warehouse and Distribution Best

Practices: The Manager's Guide
by Chelsea Tarr
 INVENTORY MANAGEMENT, WAREHOUSE ORGANIZATION, WAREHOUSE
PRODUCTIVITY, FEATURED

Warehouse management is often one big balancing act – ensuring there is enough
inventory (but not too much!), keeping inventory secure from theft (but easy to
access!) — all within a compact footprint.  Having consulted some of the industry’s
brightest minds, we’re proud to offer these warehouse best practices guaranteed to
improve your operation's organization, space utilization, safety, productivity and
inventory control.

Warehouse Productivity Best Practices

 
1. Review SKU Velocity Regularly
Some SKU’s move faster than other. Consistently review SKU velocities and relocate
SKUs that have moved from fast to slow, or vice versa. Ensure fast moving, popular
SKUs are kept in an accessible and ergonomic location (end of aisle at waist height).
Consider storing SKUs frequently picked together as a kit.

2. Store Products in Bins and Totes 

Products left on open shelving are exposed to contaminants such as dirt, dust, and
exhaust fumes from forklifts. Using bins, dividers, and totes not only keeps products
clean, organized, and in usable condition, but also maximizes your storage capacity.
You might also consider storing inventory in an enclosed automated storage and
retrieval system (AS/RS) such as a Vertical Lift Module (VLM) or Vertical Carousel
Module.

3. Consider a Pick and Pass Strategy

Order totes travel from zone to zone for fulfillment. Each picker works to fill SKUs
only in their zone, passing the order tote to the next zone when completed. Once the
order has gone to the last zone, it reaches shipping and is sent out for delivery. To
add to your productivity gains, pick the orders into a shipping container, so these
orders can be labeled and put onto a truck once picking is complete.

4. Implement Batch Picking for Faster Order Fulfillment

Batch picking allows one picker to fulfill multiple orders, or a batch of orders,
simultaneously, visiting each SKU location one time. This picking strategy reduces
travel time to the same pick location multiple times a day, which in turn increases
picking productivity.

5. Speed Order Fulfillment with Parallel Picking

In a parallel picking strategy, pickers are assigned to a specific zone and they are
responsible for picking the SKUs in their assigned zone. Each zone picks the SKUs
required from their zone simultaneously (in parallel). Once the SKUs from the zone
are picked, they are sent to a consolidation area where SKUs from each zone are
married up to complete the order. This strategy allows for more orders to be picked
at one time, speeding up order fulfillment.

6. Calculate the Cost of Labor

Calculate the cost of labor to ensure a true cost balance in your operations. Are you
constantly putting more bodies in your picking system? Spending too much money
on worker comp claims? An investment in automated storage can reduce the amount
of people you need in your picking operation, allowing you to reassign them
elsewhere. 
 

7. Receive Product Directly into Open Orders

Instead of receiving an order and restocking it to a storage location, receive the
product against an open order waiting for the product to be received. This means,
the product is never really received into the warehouse inventory just to be picked, it
is received directly into an order and goes right back out the door.

8. Prioritize Orders with Wave Picking

Consider using wave picking to prioritize which orders are picked first and keep
operations flowing smoothly. Releasing orders in waves helps manage the workload
on each function (picking, order consolidation, replenishment, packing, shipping) to
not overload one function creating a bottleneck.

9. Sequence Picking to Increase Productivity

Create a clear path to productivity with sequence picks that reduce travel time.
Sequence picking doesn’t require a picker to crisscross a picking zone or visit a
storage location more than once to fill an order. Reducing this repetitive work
increases productivity and eliminates unnecessary walking.

10. Replenish Regularly to Reduce Short Picks

Every team needs someone ready to step in, which is why your warehouse should
prioritize replenishment. Prioritize it to reduce short picks and to reduce overflow in
the receiving area. Instead of leaving new product at the receiving door, find times
for your operation to fit replenishment in throughout the day. This will eliminate
sending out orders which are short a part or two, when in fact you had those parts in
your facility the entire time!

11. Design Your Facility with Flexibility

Flexibility means being prepared for change. Design your operations to be managed
by few employees and easily increased to many employees at peak times. This will
help you plan ahead for anticipated seasonal demand when you know you need it,
not when it’s too late to find the labor.
 

 
Inventory Management Best Practices
 
12. Protect Products from Theft
Deploy inventory control to prevent theft and misplaced SKUs resulting in part
shortages. Using inventory management software to monitor transactions, posting
cameras in open rack and shelving areas and simple locks on cabinets and drawers
can save you in the short term and in the long run. For high dollar value SKUs,
consider using RFID to track down their location and find the culprit.

13. Match SKUs to Proper Storage Method

Group inventory (by SKU velocity or size) and match SKUs to proper storage
method. Perhaps you have some bulky, fast moving goods, those might belong on
shelving in a front pick zone. Whereas your small sized, medium movers might
belong in automated storage technologies. Matching your SKUs to the proper
storage method is only going to improve your warehouse efficiencies.
 
14. Prevent Part Shortages with Minimum Reorder Quantities
Set minimum quantity and reorder points to prevent part shortages, with automatic
reporting to purchasing. For companies who use the just-in-time (JIT) method, the
last thing you need is to discover you are out of the part you need, right now! If you
set minimum reorder quantities, you can track your inventory levels regularly and
automatically receive the new parts you need when you need them!

15. Implement an Inventory Handling Process

Implement an inventory handling process which best fits your business practices.
Common practice is FIFO, or “first in, first out”, but it is not necessarily for everyone.
Most often, FIFO is beneficial for companies looking to rotate their inventory so the
goods stored don’t expire or reach end of life before they are used. However, LIFO,
“last in, first out”, works well in certain environments.

16. Use Weigh Scale Counting

Who wants to count all of those small nuts and bolts anyways? Weigh scale counting
is a simple process to implement and will increase productivity and reduce counting
errors.

17. Consider Cycle Counting Regularly

No one likes a control freak – unless they manage inventory! Keep track of inventory
counts on a regular basis to ensure accurate levels and avoid a timely and costly
year end physical inventory. Whether you cycle count monthly or quarterly, if you are
keeping track of your inventory throughout the year, it will save everyone the hassle.
You can thank your control freak for this one!

18. Have a Documented Returns Handling Process

There will, of course, be returns. Have a clear and documented returns
handling procedure to avoid bottlenecks at receiving and restocking as well as the
clutter which can pile up from an overflow of returns.

19. Plan Your Facility for Scalability

Don’t be spontaneous when it comes to your facility! Learn to become a planner
when it comes to your business. Plan for flexibility and scalability. Investing in racks
of shelving today might make sense…today. But 5 years from now, you might find
your product line changing or you downsize due to a new lean process. All that
shelving isn’t necessary now is it? Have long term plans and goals so you can
accommodate future growth easily, without a major headache or last minute
investment. 
 
Warehouse Organization Best Practices
 
20. Utilize Vertical Height to Recover Wasted Space
Look up - you see the unused ceiling height? That’s wasted money. Consolidate
your overall footprint and maximize your square footage by implementing automated
storage and retrieval systems. Vertical Lift Modules (VLM) and Vertical Carousel
Modules utilize the floor to ceiling height recovering up to 85% of otherwise wasted
floor space.

 
21. Maximize Storage by Reorganizing
Rearrange your shelving to reduce the amount of space between each shelf and
store similar height products on the same shelf, creating more storage space. For
even greater cube density, consider a VLM for maximum storage density that
automatically adjusts to your changing product mix.

22. Review Your Facility Flow Often

Review the facility flow to make sure it flows in one direction from receiving, to
stocking, to picking to shipping – you don’t want people wasting time zig-zagging
from area to area. Once you find the flow which makes sense for your facility, you’ll
be running in tip top shape.

23. Lean Your Inventory

Lean your inventory to align with JIT practices. Only keep what is essential on site to
reduce overstocking inventory. This will keep your warehouse operating at high
efficiency and deliver the service your customers expect.

 
24. Keep Aisles Clear
Clear aisles of all clutter allowing easy access to stored SKUs and preventing injury.
Ensure product is organized and quickly accessible - don’t let employees waste time
searching for the one ladder in the facility – the ROI is in the increased productivity.

25. Optimize Aisle Space for Forklifts

Design your facility with enough aisle space for forklifts to travel easily. However,
don’t give them too much room or you’re wasting valuable space. Find the “just right”
spacing to be productive but not wasteful.

26. Calculate the Cost of Space

Are you making the best use of every square foot you’re paying for? Consider the
benefits of implementing high density dynamic storage and retrieval technologies to
consolidate your storage areas and recover wasted space, expanding your footprint
without a brick and mortar expansion. This will leave you so much room for activities!
27. Keep Workspaces Clean 
Keep all workspaces clean and free of clutter to prevent damage of inventory and
potential loss of product. This will make your customers, and your co-workers,
happy.
 

 
Warehouse Picking Accuracy Best Practices
 
28. Implement Pick to Light Technology for Increased Accuracy
For an illuminating approach to picking, pick to light technologies can show the way.
Pick to Light technologies direct pickers to the exact location of the SKU for
increased accuracy. Light-directed technologies take the guessing out of picks or
puts. Lights can pinpoint a location to pick from, or tell the exact SKU number and
quantity to pick, eliminating picking errors and increasing accuracy to 99.9%.

29. Consider Color Picking for Increased Efficiency 

For a productivity boost in existing zones or pods of automated storage and retrieval
units, implement color picking to allow multiple pickers to pick orders in the same
zone simultaneously. It’s pretty straightforward – pickers follow their assigned color
lights directing them from machine to machine batch picking orders as they go.
 
30. Reduce Picking Errors with Automation
We all make mistakes but it’s important to know how to recover. Mispicks cost you
time and money, and can damage your company reputation. Consider implementing
automated storage and retrieval systems integrated with light-directed picking
features which can eliminate human error.

Warehouse Safety Best Practices

 
31. Integrate Ergonomic Hoists for Heavy Lifting
In a warehouse, workers pick things up and put them down, all.day.long. Make it
easier for your employees to lift heavier product by integrating ergonomic hoists and
lifts. (Let them bulk at the gym, not on the warehouse floor.) This will improve worker
ergonomics and reduce worker compensation claims.
 
32. Use Signage to Stay Organized
The proper signage and labels can keep your warehouse moving forward. To direct
people and stay organized, make sure your signage is clear and easy to understand.
In addition, consider posting floor maps to provide additional information for visitors.
This can help you avoid accidents and major cleanups.

33. Store Frequently Picked SKUs Together

Store SKUs frequently picked together in the same picking location to reduce travel
and search time for the picker. This eliminates visiting the same pick face multiple
times a day, increasing worker productivity.

34. Employees Are Your Most Important Asset

Employees are your most important asset so give them a great work environment
that will aid in retention. Touch base with them frequently to make sure they
understand their roles and are comfortable with them. Meanwhile, job shadowing can
help you determine if someone would be better suited in a different position.

35. Provide Training Certifications

Provide proper certifications for all necessary staff to ensure everything is being operated by
trained, skilled and certified professionals to reduce the risk of injury, workers compensation
claims and safety violations.

36. Improve Processes to Increase Productivity

Take a look at your processes to determine where you can improve. Minimize
product touches, reduce wasted steps and re-allocate the time spent doing these
activities elsewhere for a more productive outcome.

37. Implement Ergonomic Pick Locations

Reduce bending and reaching by organizing products in the golden zone, the
area between the waist and shoulders. This improves worker ergonomics,
increases picking productivity and reduces employee backaches.

38. Reduce Wasted Walk and Search Time

Employees reaching their Fitbit step goals during their work shift – good for them, not
so good for you. Fit your employees with pedometers, or a much cooler tech-y
gadget, to document their steps and walking time – then find ways to reduce that
wasted time. No one likes an overachiever.

39. Utilize Data to Make Decisions

WMS, WCS, ERP – it’s all gibberish… but when you link the systems together real
data starts to emerge. Gain real time insight into your entire operation by connecting
data across multiple platforms so you can start making data driven operational
decisions.

40. Go Paperless
No one wants to manage paper pick list anymore – it’s tired, old fashioned and error
prone. Reduce or eliminate paper whenever possible, using technology for a mobile
and environmentally friendly worker experience.

41. Utilize a Label Printer to Track Inventory

Integrating a label printer to bag and tag parts can increase stock and order
accuracy. Parts can be tagged with part number, lot number, serial number, batch
number – all the numbers. Consider bagging and tagging your parts to track the
inventory throughout its life-cycle, and make customer returns easier.
42. Easily Identify Items with a Parts Picture Database
Utilize a parts picture database to increase pick accuracy. It’s easier to identify items
by photo rather than by a ridiculously long part number or difficult part name.
Instead, take photos of your inventory to pick by photo instead of by part number.
This will increase picking accuracy, reducing mispicks and making everyone’s lives
easier.

43. Use Inventory Management Software for Traceability

Use traceability to determine the exact part accessed by an operator with a time
stamp. Using inventory management software, it’s possible to monitor AS/RS
operators as they pick parts. This traceability is important for industries who use
tools in CNC machines for example. They are able to determine when a tool was
picked from a unit and what person took it in case they need to track down this
particular tool.

44. Implement Bar Code Scanning for Increased Accuracy

Using a bar code scanner for quick and accurate picking/putting eliminates the guess
work. Confirming an item during the picking process, by simply scanning it, ensures
order accuracy from the beginning.
 

45. Maximize Cube Density with Automation

Maximize cube density automatically with the push of a button using intelligent
software. As your business grows, products evolve and inventory expands. With
changing inventory profiles, it’s critical to manage cube density within every storage
device. Shuffle the storage locations to get the most out of your storage space (use
the automatic “tray shuffle” in your VLM).

 
46. Use Statistics to Increase Productivity
Create a friendly competition among workers using operator performance statistics
from your material handling software. For example, Power Pick Global inventory
management software can monitor and record the number of picks per operator , the
time per pick and accuracy rates. Analyzing the productivity of workers using AS/RS
can confirm you’re highly productive or it can show where you could make some
productivity gains and improvements.

 
47. Connect Warehouses with IoT
Utilizing the internet of things (IoT), you can connect your warehouses to control all
of your inventory from one location. The ability to monitor your inventory and storage
technologies remotely can result in reduced downtime and higher efficiencies.
 

 
48. Keep Track of High Dollar Inventory
Track high dollar or sensitive items by serial, lot and batch number throughout the receiving,
stocking and picking process. This is especially important for the medical device
manufacturing industry for example. When picking a knee replacement, it is important to
know which serial, lot and batch number is in each order in case of a recall.
49. Plan for Preventive Maintenance
It’s in your best interest to adhere to the manufactures maintenance schedules they
recommend. Make the maintenance of your equipment a priority, it keeps your
facility in working order reducing or eliminating unplanned downtime. Often, the
extended warranty is worth it.

 
50. Keep Spare Parts on Hand to Reduce Downtime
Technology and equipment failures are everyone’s worst nightmare. In an effort to
keep you daydreaming in the warehouse, keep spare parts on hand in case of those
failures. This should allow for a quick repair and get you back up and running in no
time, reducing unplanned, extended periods of downtime.

51. Evaluate Technology for Maximum Efficiency

Technology, that is. Task someone to keep abreast of the changes in the
technologies you use in your operations. Evaluating the benefit of technology add-
ons throughout the life-cycle of your equipment can further improve your efficiencies.

52. Perform Process Audits Often

Perform a process audit of your material handling and picking operations yearly to
ensure you are getting the maximum benefit of your technology. Are there processes
you can tweak for efficiency? Are there modules of software you have access to but
don’t use? Material handling technology should be driving your operations forward,
be sure you get the full value out of your investments!
 
Warehouse Shipping and Receiving Best Practices
 
53. Optimize Your Consolidation Zone
If you implement a parallel zone picking strategy, be sure to optimize the
consolidation area where all of the products in an order come together to party in
their shipping container. Consider the consolidation area as its own zone, leave
room for order totes to be received at consolidation and for the empties to be
returned for future orders. Clean and organized, remember?

54. Consider Picking Straight to a Shipping Container

The less a product has to be touched, the more efficient the process. Picking straight
to a shipping container saves time and eliminates unnecessary steps. Instead of
picking to an order tote which moves with the order to shipping only to take all of the
items out to put them in a shipping container, change the process. Pick directly into a
shipping container, promoting lean processes and reducing the steps in your order
picking strategy.

55. Review Receiving Process

Review your receiving process to ensure items are properly inspected, counted, and
verified before entering them into the inventory management system. Don’t allow
unacceptable and damaged items into inventory.