The secrets of an optimized logistics warehouse: the complete guide

Par
 
Justine Demarque
 
le
 
24/8/2022

Ready to revolutionize your logistics warehouse? If you are looking to improve operational efficiency, reduce costs, and ensure successful deliveries to your customers, this is the guide for you. Whether you are a business owner, warehouse manager, or supply chain professional, this guide will provide you with the tools you need to optimize your logistics warehouse and improve your competitiveness in the market.Explore the best strategies for optimizing your logistics warehouse, from warehouse layout to equipment selection, inventory management, and collaboration with service providers.

Understand how a logistics warehouse works

Warehouse: definition and roles

One logistic warehouse is a storage space where businesses store their goods and manage inventory, order preparation, and shipping products to customers.

What are the main functions of a warehouse?

The main functions of a logistics warehouse are as follows:

  1. Receiving goods: reception, verification and registration of incoming products.
  2. Storage of goods: storage and organization of products in such a way as to facilitate their location and subsequent retrieval.
  3. Order preparation: assembling, packaging, and labeling products for shipping to customers.
  4. Shipment of goods: loading and sending prepared orders to customers or other points in the supply chain
  5. Returns management: processing product returns, identifying problems and putting items back into stock in good condition.
  6. Inventory management: monitoring and controlling stock levels, updating data, and planning restocking.

Why is it essential to optimize a warehouse?

The warehouse is at the heart of the logistics chain. Indeed, a warehouse management efficient logistics provides numerous benefits:

  • reduce costs
  • improve operational and team efficiency
  • minimize order processing time
  • reduce the risk of errors and delays
  • ensure increased safety within the premises and teams
  • maintaining customer satisfaction

Finally, it also increases the flexibility and responsiveness of your business, allowing it to better respond to fluctuations in demand and changes in the market.

11 infallible actions to optimize your logistics warehouse

1. Define a logistics strategy adapted to your needs

First of all, the first action to take is to define the logistics strategy that is in line with your requirements. The establishment of logistics strategies is one of the pillars that ensure the speed and efficiency of distribution within the warehouse.To do this, certain variables must be taken into account, namely:

  • The quantity of orders to be processed on a daily basis
  • The type of products to be stored
  • The number and volume of items to be stored
  • The storage area required to ensure storage and order preparation

Taking these factors into account allows you to determine the size of the team that is essential for the optimal functioning of the warehouse. But also the space necessary for the latter to manage stocks and the strategy adapted to your needs. Depending on these, you can then consider a particular level of logistical organization:

  • Small logistics
  • Structured logistics
  • Industrialized logistics
  • Logistics outsourcing

tableau types entrepôt logistique

Source: Octave.biz

2. Optimize the work environment for employees

Employees are essential players in the proper functioning of a logistics warehouse. Therefore, it is important to improve their work environment in order to allow them to be more productive and to better satisfy customers.

✅ Invest in quality equipment

First of all, you need to invest in quality equipment. Like bar code readers, screens, scales, scales, cartons and packaging, labeling devices, etc. Their use in fact facilitates the work of your team and makes it more comfortable.

✅ Adopt the appropriate equipment

On the other hand, the adapted equipment makes it possible to automate the work of your employees. In fact, the tasks to be performed in a warehouse can be physical and repetitive. Carrying heavy loads can also increase the risk of accidents and have a negative impact on the health of employees. This is why investing in advanced equipment (pallet trucks, conveyors, forklifts, etc.) considerably improves the conditions in which your team works.

✅ Limit unnecessary trips

Second, unnecessary trips should be limited as much as possible. To gain efficiency in your warehouse management, everyone's trips must be well organized. Thus, logistics picking paths must be well defined as must the organization of products on the shelves. This is in order to simplify order processing as much as possible. Thanks to these measures, you can ensure the optimal functioning of your logistics team in the long term.

💡 Shippr tip: Listen and take into account the opinion of your employees. Being the main players in the proper functioning of the warehouse, their feedback allows you to constantly improve their working environment and thus encourages their productivity.

3. Set up your warehouse efficiently

The key to optimizing your logistics warehouse also lies in The layout spaces and their storage. Managing a large number of orders per day requires good organization.

✅ Set up a logistics addressing system

The numbering of all products, also known aslogistical addressing, makes it possible to create logistical itineraries that will allow quick access to the desired product.

✅ Create storage and work areas

Storage area, store area, order preparation area, receiving and shipping area, conveyor area, etc.

✅ Classify and organize products

Organize products according to size, weight, rotation frequency, and compatibility. Indeed, a warehouse is part of a stock of varied products that can be heavy, perishable, fresh, customizable products... These items must be compartmentalized according to their specificities in order to facilitate their storage, but also picking. Another tip: also remember to gather high-turnover items at the end of the chain. In fact, to facilitate and accelerate the preparation of the order, it is obvious that they should preferably be placed at the end of the chain.

🔎 Example: Customizable products are subject to a transition through a different chain or a more complex flow. Namely a manufacturing phase before packing and shipping. For fresh and perishable products, some of them need to be stored at specific temperatures to keep them in good condition. Therefore, it is important to set up a logistics class for each item that displays specific conditions.

✅ Configure aisles

Depending on the handling equipment used and the traffic of employees. Make sure you leave enough space to allow for smooth and safe movements. Also remember to respect the regulations and set up traffic signs in order to facilitate and optimize the movement of vehicles while ensuring the safety of all.

💡 Learn more: Discover rulemaking who oversees logistics warehouses.

✅ Optimize vertical space

Take advantage of vertical space by using high-rise storage solutions. Whether shelves or mezzanines, they allow you to maximize storage capacity without increasing floor space.

💡 Tip: Plan a flexible layout that can adapt to changes in business needs, such as increased inventory volumes or the introduction of new products.

4. Use technology to automate as much as possible

Automation is one of the key elements to optimize the efficiency of your logistics warehouse. To get there and help you there, many technologies exist.

  • Warehouse Management Systems (WMS): enable automated and real-time inventory management, from receipt to shipment, by providing accurate information on stock levels, locations, and product movements.
  • Enterprise Resource Planning (ERP) Systems: provide an overview of all business operations, including logistics activities, for more effective planning and better coordination between different functions.
  • Automated sampling systems: use equipment such as robots, conveyors and automated forklifts to reduce handling times and optimize product picking.
  • RFID tagging: allow products to be monitored remotely and in real time, facilitating stock management and product location.
  • Automated control systems: allow you to control the warehouse environment, such as temperature, humidity, and lighting, to ensure optimal storage conditions.

5. Anticipate demand as much as possible and restock effectively

Effective inventory management also requires carefully anticipating demand and planning replenishments accordingly. Businesses can use forecasting methods based on sales history, market trends, promotions, and seasonal events. A well-planned restocking helps avoid stockouts and overstocks, which reduces storage costs and improves customer satisfaction. It is important to work closely with suppliers to ensure smooth communication and reliable supply.

6. Optimize the goods receiving process

An effective receiving process is essential to ensure product quality and inventory accuracy. Here are some steps you can take to optimize the reception of goods:

  1. Scheduling: coordinate with suppliers and carriers to plan deliveries and allocate required resources.
  2. Inspecting: check the goods upon arrival for damage, errors, or deviations from the order.
  3. Recording: use a system of warehouse management (WMS) to record information about received products and update inventory levels.
  4. Storage: Arrange goods in an organized manner, respecting inventory management principles such as PEPS (FIFO) or DEPS (LIFO).

7. Adopt an efficient order picking process

The steps of preparing orders and packaging products are key to ensuring customer satisfaction and minimizing returns. To optimize these processes, we recommend several actions:

  • Use sampling techniques such as zone sampling, batch sampling, or wave sampling to improve efficiency.
  • Adopt an order verification system to avoid mistakes and customer complaints. This could be double checking or the use of bar codes.
  • Select suitable packaging materials to protect products during transport and reduce costs.
  • Personalize packaging with clear, legible labels containing essential delivery information, such as recipient address, bar code, and handling instructions.

8. Specialize employee tasks

For more convenience in your warehouse, specialize the tasks of your employees. In other words, the work in the various areas can be divided into several very distinct tasks.🔎 ExampleIn the order preparation area, a team can specialize in carrying out a particular task, namely:

  • Picking manager
  • Packing manager
  • Travel manager
  • Etc.

The same goes for the various areas of the warehouse.

9. Use the cross-docking technique

Cross-docking is a logistics technique widely used in warehouses, because it allows:

  • For employees to work more efficiently and faster
  • To reduce the company's energy costs

This approach actually consists in shipping orders received from suppliers directly to customers who are waiting for these products. Thus, cross-docking makes it possible to avoid storing and preparing the order. Therefore, upon receipt of the products, they are directly identified and grouped according to their destination for delivery as soon as possible.

Learn more: Learn how to implement a strategy By cross docking.

10. Automate the management of stockouts

For a successful warehouse, you need to anticipate all the unexpected and worst-case scenarios that your warehouse may face. One of them represents unexpected stockouts. Automation is your best ally for better management of this situation. Indeed, it makes it possible to avoid treatment costs and thus limits the risk of customer dissatisfaction.🔎 ExampleAutomations may consist in sending an email to warn the customers concerned. Demonstrating transparency and adopting effective communication between your customers and you contributes to the establishment of a relationship of trust.

11. Ensure flawless quality control to reduce errors

To minimize errors and inventory losses, it is important to have quality control procedures and regular audits in place. Indeed, to guarantee the credibility of your business with your customers, demonstrating an irreproachable quality of service is essential. This includes products delivered to complete customers in perfect condition. The controls must be multiple: whether when the products arrive, at the time of picking or during the preparation of the order, but especially at the packing stage to ensure the conformity of the packages delivered. Training staff and encouraging error reporting also helps improve inventory accuracy and reduce losses.

Optimizing your logistics warehouse: a necessity with numerous benefits

As we have seen, the organization of a logistics warehouse is at the heart of efficiency. Indeed, a warehouse optimized according to your real needs saves time and the quality of work. All these simple actions allow better logistical management of your warehouse and thus long-term profitability.

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