5 ways to boost warehouse performance in logistics

Abhishek Bansal, co-founder & CEO, Shadowfax writes about importance of warehouse in logistics and ideas to optimise the business by managing storage spaces well.

It is widely accepted that the success of any supply chain is dependent on the optimal performance of its logistics system. And a vital element, critical to the effectiveness of the logistics system, yetan often overlooked one is - warehousing. A warehouse is a dynamic operation and can deliver a higher return on investment than many realize. A warehouse is not just a simple storage facility. An efficient warehouse management system is the nerve centre of the supply chain system.

Maximize and optimize space
Having a warehouse of optimal size and capacity for operations is the key to maximizing the supply chain outcome. Too big or too small warehouse spaces give rise to high costs and disrupted supply. Within the warehouse, products need to be stacked in best locations and positions as per various inventory factors so that the general flow through the warehouse is unproblematic. The fast-moving stock needs to be quickly accessible for the smooth flow of the operations. There are many strategies that can be employed to identify which product line should be placed where in the warehouse for fast-moving. Also, a warehouse must be able to absorb changes in demand/sales.

Adopt innovative technology
Supply chains should opt for a customized information management system. It will benefit the business in a range of areas including warehouse management, supply chain management, order tracking, inventory management and accurate delivery of customers’ orders. Areliable and affordable warehouse/stock management software provides real-timevisibility of products and enables the system to quickly process customerorders effectively cutting down usual problems related to supply chain.

Inventory tracking and regular audit
Supply Chain including warehousing systems should redefine the standard operating procedures to make sure that their team is moving the right wheel at the right time. This requires a few small but strategically very important steps such as employing latest equipments such as bar codes and scanner for easy inventory tracking, free flow of information across the value chain, daily, weekly, and monthly analytics report- to guide the team about the sales flow and market behaviour trends. Double-checking the orders as people are more prone to make errors and may lead to the shipment of order for the second time. Right inventory tracking methods and periodic audits add to the supply chain efficiencies..

Controlling/optimizing inbound and outbound freight
Supply chain can create a routing guide as part of the process to clearly define operating procedures. Routing guides can be physical or digital, but the digital guides can adapt to changes in the shipping.

By implementing a routing guide, they can limit rogue expenses by suppliers. A routing guide is most effective when a particular business unit is in charge of overseeing and updating it.

Educate warehouse staffs
Staffers who manage orders and information in the traditional way must be trained in modern methods, systems and technology. This can be done internally by HR department or the software vendor could arrange a training session for the team. Moreover, they can invite the system architect and data management team to come over and provide weekly insight to the team on the floor and warehouses. This will enable a smooth flow of information across the chain.

Abhishek Bansal, is the co-founder & CEO, Shadowfax. Logistics platform Shadowfax serves first-mile and last-mile delivery needs of 2000+ clients (across e-commerce, food, pharma, grocery, furniture & others) in 100+ cities with offerings across less than 90-minute delivery, same day and next-day pick-up/delivery.