Dec 9, 2022 | Article
In the world of supply chain management, understanding the different types of warehouses is crucial. These storage areas, ranging from stockrooms to depots to consolidated warehouses, each serve a unique purpose, facilitating order fulfillment and ensuring customer satisfaction. They are integral to the warehouse design and management systems of any company.
Private Warehouses
Private warehouses are owned and operated by suppliers and manufacturers, or distributors. These private warehousing storage systems provide an advantage of control over the handling and storage of materials. Companies like Target have their own private warehouse or warehouses, offering flexibility to adapt to changes and control transportation costs. The name of the warehouse owned or company is usually associated with the warehouse for easy identification and maintenance.
Public Warehouses
Public warehouses are rented spaces, offering storage to different businesses on a contractual basis. For startups and smaller companies, this eliminates the need for a large investment in a private building. An added benefit of public warehouses is their potential for warehouse automation, improving efficiency and reducing human error. These warehouses can be found in almost every country.
Bonded Warehouses
Bonded warehouses are government-licensed storage areas for imported and duty-unpaid goods. This type of warehouse enables manufacturers to defer payment of taxes until goods are sold or shipped, aiding in maintaining cash flow. They also provide a secure environment for storing valuable items such as pharmaceuticals in secured boxes.
Cooperative Warehouses
Cooperative warehouses are owned and operated by organizations of farmers or similar groups to store and distribute members’ produce. They can reduce transportation and packaging costs while maintaining a high level of customer service. These public warehouses tend to perform specific functions that cater to the needs of the cooperative members.
Cons of Public Warehouses
Less control and insight on stock levels, products flow and product handling since the goods are under the control of the client.
Distribution Centers
Distribution centers are key for fast-paced order and fulfillment services. A prime example of this type of warehouse function is cross-docking, where incoming shipments are directly transferred to outgoing areas, minimizing storage time and cost. In some cases, these fulfillment centers also serve as a stash point for goods before they are distributed to different locations.
There is also room to store temporary goods. Unlike other warehouses the warehouses can store material for temporary and long periods, with significantly higher rates for goods incoming and outgoing. If a large amount of material is collected and distributed to multiple distributors in your supply chain it can help greatly. Distribution centres manage and ship orders as well and are essential in the communication of suppliers and clients.
Automated Warehouses
Automated warehouses use state-of-the-art warehouse automation technology to streamline processes. These smart warehouses can handle large quantities of products and improve accuracy in order fulfillment. It’s an optimal solution for companies aiming for growth and efficiency. The warehouse layout in these facilities is designed to maximize automation.
Cold storage warehouse
It is a storage area where temperature-sensitive materials like medications, cosmetics and drinks are stored. These warehouses are specially constructed to maintain the lowest possible temperatures. This storage facility is mainly beneficial because it will keep the quality for years. A further cooling system provides the temperature within the cold storage facility.
A Look at Specific Warehouse Types
To dive deeper, let’s take a look at some concrete examples of how different warehouses have different use cases. The U.S. government maintains government warehouses for storing reserves of essential items, from emergency medical supplies to military equipment. This government warehouse serves as an example of how even private sector companies and warehouses can cater to very specific needs.
Amazon’s modern warehouses are another fantastic illustration of warehouse automation. These tech-powered facilities maintain a vast range of products, managing inventories with advanced robotics. They’re designed to store inventory and ensure quick, accurate deliveries of imported goods to customers, showcasing the efficiency and scalability automated warehouses can provide. Their proprietary warehouses have set the benchmark of digital transformation in the warehousing operations industry and are optimal for long term storage.
Costco operates a network of cooperative warehouses. It sources products directly from producers and sells them to consumers in bulk via a typical cooperative warehouse, reducing transportation and packaging costs. These warehouses cater to members, reflecting the utility of cooperative warehouses for certain business models.
However, there are also cons to fulfillment centers. Costs can add up quickly, particularly if making extensive use of their value-added services. You also have little control over how your items are handled and shipped, which can risk product damage and unhappy customers best suited to storage items on a short-term basis, such as those with high-value In other words, rather than operating in an open-plan first-come, first-serve basis, contract warehouses provide storage when it is advisable.
A Closer Look at Warehouse Costs
Costs associated with warehouse operations can be a deciding factor in which type of public warehouse is right for your business. A private warehouse may require a higher upfront investment for construction or purchase, but ongoing costs are within your control. Public warehouses eliminate that initial expenditure but have recurring rental fees. Bonded warehouses provide tax advantages, while automated warehouses may save businesses money entail substantial technology and maintenance costs. Evaluating these costs in relation to your business’s financial capacity and long-term goals is crucial.
Choosing the Right Warehouse for Your Business
Choosing the right warehouse will depend on several factors, including:
- The amount and type of goods: Does your business handle large volumes of small items or smaller volumes of large items?
- The stage of the production process: Are you storing raw materials, work-in-progress, or finished goods?
- The desired level of control over storage and transportation: Do you need close control over inventory and transportation, or is flexibility more important?
Ask yourself these reflective questions to help in your decision-making process:
- What are my specific storage needs, and how can different warehouse types meet these needs?
- How might my warehouse needs change as my business grows or as market demands shift?
- What kind of investments am I willing to make in warehouse infrastructure, either up-front or over time?
- Do I want to invest in automations and latest technologies and build a smart warehouse?
Remember, the correct warehouse inventory and storage facility choice can enhance your supply chain management.
Case Studies on Warehouse Selection
Looking at real-world examples can further clarify the impact of warehouse space and type on a business’s success:
- Walmart: The retail giant operates an extensive network of distribution centers, efficiently handling vast quantities of goods. This system, combined with cross-docking, allows Walmart to maintain low storage costs and rapid product turnover, a cornerstone of its low-price strategy.
- DHL: This global logistics company uses bonded warehouses at key locations, allowing clients to delay duty payments and aiding in smooth international trade. Their choice of warehouse supports their role as a global shipping and logistics leader. Since it’s a major part of their business operations, most of their properties have undergone digital transformation and have been transformed into smart warehouses.
- Zara: The fashion brand’s innovative use of an automated distribution center in Spain has become a case study in supply chain efficiency. Their system responds rapidly to changing fashion trends, which is integral to their business model.
- IKEA: IKEA, the multinational furniture retailer, has perfected its warehouse management to align with its unique business model. IKEA’s warehouse-style stores allow customers to pick up flat-packed furniture directly from the warehouse section. This clever blending of retail and warehouse spaces allows IKEA to reduce its storage costs and simplify inventory management. Further, by placing the responsibility of product assembly on the customer, IKEA has significantly reduced its storage and transportation costs. IKEA’s strategic choice of a warehouse type closely integrated with their retail outlets is integral to their success and unique customer experience. They even have their own bin storage practices.
Future Trends in Warehousing
The warehousing industry doesn’t stand still. In a decade, every warehouse will be a smart warehouse and make the best use of the following emerging trends:
- Artificial Intelligence (AI): AI can improve accuracy in demand forecasting, optimizing stock levels and reducing warehousing needs. It can also aid in warehouse management, improving efficiency.
- Drones: Drones in warehouses can be used for inventory management, reducing manual labor, and increasing accuracy. They can also work in unsafe conditions, improving worker safety.
- Internet of Things (IoT): IoT devices collect and analyze data in real time, improving operational efficiency. They can track goods, monitor equipment performance, and even predict maintenance needs, reducing downtime.
Embracing these trends can give your business a competitive edge, allowing you to maximize efficiency and adapt to future business needs and challenges in the warehousing industry.
Concluding Thoughts
The warehouse is more than just a storage space. It’s an essential cog in the supply chain management system. Understanding the different types of warehouses and their pros can provide your business with an edge, enhancing order fulfillment and bolstering customer satisfaction. From private hoards to other warehouse options, automated caches to on demand warehouses, the answer to your storage needs lies in understanding these warehouse types.
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For More Information About ShipHero
Whether you want to let go of running your own warehouse, or run your warehouse better, you can do both – and so much more – with ShipHero.
Click HERE to Schedule a Meeting with Our Sales Team.
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Dec 9, 2022 | Article
If you’ve ever wondered how your online orders arrive at your doorstep quickly and efficiently, it’s all thanks to the warehouse packing station. Packing stations are the places at the end of your shipment chain where orders are carefully packed and prepared. An effective packing station can reduce your labor costs, shipping expenses, and order errors and helps to meet your customer’s satisfaction. It’s a well-oiled machine that helps to ensure that your orders arrive on time and in perfect condition. In this blog, we go over the basics of a warehouse packing station and why they’re so important.
What is a Packing Station?
A packing station is a space in a warehouse where products are checked, packed, and labeled for shipping. In addition to being ergonomically efficient, it is equipped with all the packing materials necessary within easy reach. And a well-designed packing station can greatly improve the order fulfillment process.
What Does a Packing Station Consist Of?
Order fulfillment is only as fast as its slowest function, and packing–often the last stop before shipping–can be a bottleneck. But a well-designed warehouse packing station will ensure a place for everything. Modular and ergonomic packing stations can increase productivity by eliminating the need for workers to bend, reach, or leave the packing area to retrieve supplies.
Packing stations can be outfitted with various accessories. They usually consist of a workbench with shelves or gravity flow tracks designed to store the materials used to prepare orders for packing and shipping. Packing supplies such as boxes, envelopes, packing paper, and tape can be stored on packing stations in easy-to-reach locations. Tools like scanners, scissors, tape measures, utility knives, and tape guns are often organized and hung on the packing station for quick and easy access.
Connecting your packing and shipping areas with a simple gravity conveyor system can reduce bottlenecks and eliminate worker travel time. Thus creating a seamless integration between order picking, packaging, and the loading dock.
How to Make your Packing Station More Efficient
When it comes to efficiency, your packing station is key. But all too often, people focus solely on storage when designing their packing workstations. In order to maximize efficiency, your packing station needs to be integrated with the company’s warehouse management system. As a result, you will be able to organize the most important packing materials and supplies logically. If you’re looking to make your packing station even more efficient, you can do a few things.
Warehouse Organization for Efficient Packing Stations
A well-organized warehouse is very important for an efficient packing station. A perpetual inventory management system will keep track of stock levels and help avoid surprises. The workstation should be arranged so that all the tasks required to pack a shipment can be carried out smoothly and uninterrupted. It should also be tidy and well-stocked with all the supplies needed to safely and securely pack items for shipment. Creating a lean warehouse will save you time and money in the long run.
Streamline Your Packing Workflow
The packing process is one of the most important steps in getting products ready for shipping. A well-designed packing workflow can help improve efficiency and reduce errors. When creating a packing workflow, it is important to consider the type of products being packed, the volume of products, and the space available.
Packing stations that deal with high-volume small packages need to be more compact so that the worker has enough space to pack products quickly with all the packing materials within reach. Whereas packing stations that handle large and bulky products need to be spacious and include lifting equipment to help workers pack heavy items. Also, extra space can accommodate automation later on.
We have even gone one step further and included a YouTube video that walks you through the processes that go on at the packing station. You can watch the full video HERE
Create a Workstation That Delivers Orders
In a busy warehouse, time is of the essence. That’s why it’s important to have an efficient system for bringing orders to the packing workstation. Whether it’s boxes, totes, skids, carts, or conveyors, the goal is to deliver the orders in batches, so the packer doesn’t have to move from his workstation. The delivery system should be located next to the table, and the packer should always be within easy reach of a new order.
Whenever possible, staging systems should be next to the table so the packer can avoid lifting, carrying, and walking the carton to the staging location. The best solutions allow the packer to simply push the packed carton onto the staging area which helps to keep the packing station running smoothly and efficiently.
The Gaming Community’s Answer to Warehouse Packing
Remember those old handheld barcode scanners that revolutionized warehouse picking and packing? Well, there’s always been a bit of a lag between picking up the scanner, scanning the barcode, and then placing the scanner down to continue working. Maybe it’s one or two seconds, but shave those few seconds off every order, and you’ve accumulated a lot of time.
One of our ShipHeroes found our solution in the gaming community. Xbox® released an adaptive game controller meant for gamers with limited mobility. We discovered that this device could work for packing stations at ShipHero. The cost to make this upgrade is nominal. It’s cheaper than a mobile socket scanner, which most clients use in their warehouses. Not only that, but workers love it because it’s more fun and less time consuming. They literally push buttons, no time is lost scanning or using a mouse and keyboard.
Frequent Packing Process Evaluation Pays Off
If you’re looking to keep your packing operation productive, it’s important to frequently observe and upgrade the process as business factors change around it. You can be more accurate and faster with the right combination of processes, equipment, technology, and training. By frequently evaluating the packing process, you can ensure that your operation is always running smoothly.
Establishing Packing Procedures
An efficient warehouse packing station is critical to a successful order fulfillment process. That’s because it helps you ship the right goods to your customers quickly and in good condition. It can reduce your labor costs, shipping expenses, and order errors and helps to meet your customer’s satisfaction. After all, the success of any eCommerce business comes down to happy customers, and efficient packing stations are necessary to achieve this. Late orders, high shipping fees, and order inaccuracies won’t keep your customers coming back for more. Sometimes, you need a third party with a team of experts to handle the logistics while you focus on growing your business.
This is where a warehouse management solution like ShipHero can help you out. With ShipHero, you can automate your warehouse packing stations and get real-time insights into your fulfillment process so that you can make informed decisions about how to improve your operation. As a result, you can keep your customers happy and grow your business. Contact us today to learn more about how we can help you take your warehouse packing station to the next level!
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For More Information About ShipHero
Whether you want to let go of running your own warehouse or run your warehouse better, you can do both – and so much more – with ShipHero.
Click HERE to Schedule a Meeting with Our Sales Team.
Follow us today on Twitter and LinkedIn.
Dec 9, 2022 | Article
Product bundling is one of the oldest retail tricks in the book, and for a good reason. Why go a long way around when you can get multiple products in one easy package? Companies have realized bundling is a great way to offer customers more value for their money and drive up their average order value. Just look at the success of the Happy Meal! The classic combination of a burger, soda, and french fries has been popularized by bundling them together, making it easier than ever to enjoy a complete meal. It may be an old trick, but bundling remains one that businesses everywhere swear by to this day. So what is the meaning of bundling, and how does it benefit business? Well, stay right here and “bundle” up for this blog.
What is Product Bundling?
Product bundling is bundling multiple items to get customers to buy them together for one price instead of individually. This bundling gives customers an incentive to purchase more than they normally would at one time, resulting in an extra benefit for businesses. It’s also a great way to encourage items that might be overlooked if purchased on their own, boost sales, and combat price-gouging. Bundling can be done through various mediums depending on the industry and the target audience.
Get More for Your Money With Upsells and Cross-sells
Businesses can leverage upsells and cross-sells to move more products while simultaneously providing customers with added value.
- The purpose of an upsell is to convince the customer to upgrade or purchase a slightly more expensive version of what they originally intended to purchase.
- Similarly, cross-sells promote similar products within the same group; “would you like fries with that?”
Benefits of Product Bundling
Bundling helps you do much more with your existing stock. Let’s look at the advantages of product bundling and how it can benefit your business.
- Increase Sales and AOV
A bundling strategy can be a great way for businesses to increase their profits and the amount sold over time. As demonstrated by studies from Harvard Business School, bundling products can help businesses get customers to buy more than one item during a single purchase while still offering them discounts. This means they’ll get more value for each order while you keep your average order value high.
For example, an electronics store might offer discounts when customers bundle televisions and soundbars together – a win-win situation! Not only do customers enjoy the convenience of making fewer purchases, but they end up with the best deal possible.
- Decreases Marketing and Distribution Costs
Not only do bundling strategies enable you to sell more of your products together and get more bang for your buck, but it also leads to decreased costs in marketing and distributing. Instead of promoting each product separately, bundling multiple items together removes the need to market each item individually. And with only one warehouse bin taking up less storage space, distribution costs are also lowered.
- Reduce Inventory Waste
Inventory waste can be a major problem for businesses, causing money to be spent on holding costs without receiving any return. But with a bit of bundling magic, you can help reduce it! By bundling slow-moving or stagnant items with popular ones, customers will see the bundle as an amazing bargain and snatch it up. This helps clear out your dead stock before it becomes a problem, frees up your warehouse space, and decreases the amount of money you would have to spend on inventory holding costs. Bundling isn’t just an opportunity for thrifty shoppers; it’s also an important tool for reducing surplus inventory and keeping your business running smoothly. So if your shelves are cluttered with products that won’t move, bundling is the solution you’ve been looking for.
- Increase Product Awareness
Product bundling is one of the best strategies for increasing product awareness. By bundling items together, you are giving customers more value with every purchase and encouraging them to become familiar with additional products they wouldn’t have otherwise considered. For example, bundling items in themed sets or offering discounts on popular pairs makes it easier for customers to try something new while recognizing a good deal.
Furthermore, bundling introduces customers to different product lines they might not have been aware of and encourages them to try items outside their comfort zone, potentially leading to higher sales returns in the long run. In short, bundling can be a great way to increase product exposure for both businesses and consumers alike.
- Boost Customer Loyalty
Offering bundles is a great way to increase customer loyalty, as bundling creates more opportunities for shoppers to find something they love (and then return for more). As a bonus, bundling helps ensure that customers get their money’s worth – by bundling multiple items together, buyers can save money and still receive high-quality goods and services. So why not bundle up your bestsellers into one convenient package and reap the rewards with increased customer loyalty?
Types and Examples of Product Bundles
Several different bundling techniques are used to group products:
A mixed bundling strategy involves offering customers the option of buying a bundle as well as the option of buying individual items. Offering mixed bundling at a lower price than if the items were sold separately will incentivize users to purchase the bundle.
Fast food combos are examples of mixed bundling – you can purchase each item individually or as part of the combo for a single price.
Pure bundling refers to grouping products that are only available when sold together.
For example, whenever you purchase cough syrup, you also get a small plastic cup, which you would never buy separately.
When a customer orders multiple of the same product, bundling is a smart way to offer a discount. Customers are encouraged to buy in bulk upfront by same-product bundling, similar to a subscription model.
For example, many direct-to-consumer (DTC) brands that sell essential or personal care products (e.g., toothpaste, paper towels, or hand soap) do well with this bundling strategy.
In addition to being an effective marketing strategy, product bundling is a convenient way to eliminate old, unwanted inventory and make room for new items. Your bottom line can be negatively affected by slow-moving products. So pairing a popular item with a product that isn’t performing as well can entice customers with the prospect of a good deal.
For example, bundling a last-season computer mouse with brand-new keyboard is easy because customers need both to use a computer.
Popular Examples of Product Bundling
- Gifting product bundles: Gift bundles are aimed at shoppers who want to give a bundle of complementary products together to a loved one.
- Subscription boxes: Subscription bundles provide complementary value by adding products or services that enhance an existing subscription.
- Build your own bundles: With custom bundles, you can choose from a wide range of products, as well as single items.
Product Bundling Best Practices
- Offer a discount on the bundle so that customers can see the value.
- Show the cost of a bundle side-by-side with the cost of individual products.
- Analyze where bundles fall within the customer journey.
- Use holiday emails to highlight bundles.
- Observe vertical industries – how are they priced and what’s included?
- Examine other websites’ upselling tactics.
Get the Most out of Bundling with ShipHero’s WMS
When it comes to bundling meaningfully in your eCommerce business, understanding what bundling is and how to integrate bundling into your warehouse management system is key. With bundling strategies like pick kit and build-kit, you can customize how you store and manage the pieces of your bundles or kits.
ShipHero’s warehouse management system provides a comprehensive solution for integrating bundling goals into your inventory management strategy, giving you powerful automation tools with one-click integrations and dedicated client support. Put simply, ShipHero is here to make sure that your kits and bundles add up!
Product Bundling: Your Secret to a Better Bottom Line
Product bundling is one of the oldest and simplest tricks in retail, yet so often overlooked by customers. However, bundling your products can be a powerful way to boost sales, increase customer loyalty, and earn extra revenue – if done right. With bundling, you can create custom product packages tailored to individual customers’ needs and promotions that reward shoppers for bundling multiple items together. In addition, bundling can help draw attention to slow-moving stock or be used for product awareness initiatives.
All these strategies can help to make your store stand out from the crowd and give you an edge in today’s competitive market. So why not put bundling at the center of your selling strategy? With these tips in hand, you can create custom bundles that will increase sales, loyalty, and awareness for your store – and, who knows, maybe even earn you an extra buck. Thanks for reading!
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For More Information About ShipHero
Whether you want to let go of running your own warehouse or run your warehouse better, you can do both – and so much more – with ShipHero.
Click HERE to Schedule a Meeting with Our Sales Team.
Follow us today on Twitter and LinkedIn.
Dec 9, 2022 | Article
A lot goes on in a warehouse beyond just shelving products and loading them onto trucks. One important process is order picking, which happens when employees select the items that go into order. It’s an essential part of making sure customers get the products they need, and it’s a job that takes precision and care. In this blog post, we’ll take a closer look at what order picking is and some of the factors that go into it. We’ll also explore how technology changes how orders are picked in warehouses today.
What Is Order Picking in a Warehouse?
Order picking is the crucial activity that pulls individual items from a fulfillment center to create an order. It’s a labor-intensive and costly operation that accounts for over 50% of total warehouse costs—so it pays off to get picking right! That being said, with customer satisfaction, business reputation, and profitability all hanging in the balance, managing picking operations effectively can be no laughing matter.
Picking Methods
When it comes to picking in the warehouse, there are several picking methods to consider. The four top picking strategies for order picking are batch picking, zone picking, discrete picking, and wave picking. All four strategies have advantages and strategies tailored to optimize performance and reduce bottlenecks at different supply chain stages.
1. Batch Picking
Many different order picking methods can be used in a warehouse, but batch picking is often the best option when fulfilling multiple orders that use the same SKUs. This way, pickers only have to travel once to a location for a SKU to fulfill multiple customer orders. Batch picking aims to improve productivity as it reduces repeated trips, steps, and time. In addition, it is often more accurate than other picking methods since pickers are less likely to make mistakes when picking items for multiple orders simultaneously.
2. Zone Picking
Zone picking is an order picking method used in warehouses where pickers are each assigned to a physical area, or zone, of the warehouse. It is only responsible for picking the SKUs from that area. This strategy is often used for complex or multi-item orders to improve efficiency. To fulfill customers’ orders, the picker(s) assigned to a zone is responsible for picking all the SKUs from that zone.
This means if an order has items in another zone, a different picker will pick that portion of the order, working like an assembly line. Zone picking is best suited for warehouses that fulfill complicated orders with many units or at least a combination of complicated and simple orders. The warehouse itself must be organized and optimized to make this model work. An order picking method like this can help save time and money while improving accuracy and order fulfillment rates.
3. Wave Picking
Wave picking leverages scheduling windows to group and prioritize orders based on time and importance. This picking method is a variation of zone or batch picking that is best for warehouses with large numbers of SKUs. Rather than picking orders chronologically, wave picking allows businesses to evaluate all orders together to determine an optimal picking strategy. By considering factors such as labor, delivery times, and ship dates, businesses can ensure that orders are fulfilled promptly and efficiently. This picking method is ideal for businesses that must quickly and efficiently fulfill many orders.
4. Piece Picking
If you’re running a small business with limited SKUs, piece picking or discrete picking is the way to go. This picking strategy refers to when a picker works on one order at a time, retrieving all the necessary SKUs before moving on to the next order. This method is best for small businesses with low SKU counts and/or small warehouses or storage facilities.
While piece picking requires a lot more movement than other picking strategies, it makes sense to use it until a business hits a certain scale that warrants one of the picking methods above. This strategy makes it easy to track order picker accuracy and enables rapid response time for order fulfillment.
Warehouse Picking Optimization With Technology
Warehouses are a critical part of the supply chain, and optimizing them can significantly impact your business. There are many factors to consider when optimizing your warehouse, from the layout of your storage shelves to the route your picking staff takes. Introducing new technologies can also help to optimize your warehouse, such as automated order picking systems. By constantly evaluating and improving your warehouse operations, you can ensure that your business is as efficient and effective as possible.
- Barcode Scanners: Barcode scanners are a simple way to improve warehouse operations. They allow for accurate identification of products, locations, and more while speeding up the process with near-zero errors!
- Wearable Computers: Wearable computers are a must-have for any warehouse, with the ability to provide real-time feedback and orders while picking. The small screen, keyboard docks, or gloves allow pickers hands-free access, reducing accidents and product damage because they can work from anywhere in your store without having an assistant around!
- Voice Picking: Voice Picking is an invaluable tool for operators. With voice picking, they’re equipped with a headset and microphone connected to the WMS over local wireless warehouse networks! They also interact verbally through commands which provide detailed instructions about where products need to be picked up or what kind of inventory you have available.
- Collaborative Mobile Robots: In the past, workers had to move their picking carts manually, but now mobile collaborative robots have been introduced to supplement the work done by human warehouse associates and automate movements throughout facilities.
Some of the benefits of doing this include increased accuracy and productivity, multi-language capabilities, reduction of data entry errors, improved safety through hand and eye-free technology operation, and increased availability of picker time.
Warehouse Efficiency Hacks
Nothing is more frustrating than searching through a warehouse for a particular item. That’s why it’s important to have a good picking strategy in place. The best strategies minimize picking times by making the most frequently picked items more accessible. Doing so will save time and money in the long run.
Implement a WMS like ShipHero
Implementing warehouse management software can improve picking methods and picking in the warehouse. This allows your team to pick and pack more in the same amount of time and train recruits faster. ShipHero’s Warehouse Management System simplifies eCommerce picking, packing, and shipping. By auto-generating pick lists, accurately displaying product availability, providing real-time insight into order status, forecasting when to replenish inventory through reorder point notifications, and even assisting with planning staff labor, a WMS like ShipHero can take your warehouse to the next level.
Use the Right Equipment
If you’re looking for ways to improve picking methods in the warehouse, you’ll need to invest in the right tools and equipment. There are many types of picking carts available, each with its own benefits. For example, some picking carts are designed for conveyor systems, while others are specifically for barcodes and inventory scanners. But no matter what picking system you use, the most important thing is ensuring you have the right equipment for the job.
Track Your Warehouse Productivity
If you’re running a warehouse, keeping track of your productivity is important. You need to know how long it takes to ship an order, how many units are in storage, and how accurate your pickers are. You should also monitor your inventory turnover and average warehouse capacity used. By understanding these metrics, you can help your pickers be more productive.
For example, suppose you know that it takes your pickers an average of two minutes to find a unit in storage. In that case, you can improve their productivity by ensuring that the units are stored in a more easily accessible location to them.
Why Warehouse Picking is Important
Warehouse picking is selecting individual items from a fulfillment center to fill customers’ orders. It might not sound glamorous, but it’s essential for any e-commerce or retail business that wants to thrive. That’s because picking directly impacts customer satisfaction, business reputation, and profitability. In other words, your business will likely suffer if your picking operation isn’t running smoothly. So how can you optimize your picking operation and ensure it runs like a well-oiled machine? Following these tips ensures that your picking operation is efficient, accurate, and cost-effective.
How ShipHero Can Help
As anyone who has ever worked in a warehouse knows, picking is one of the most important, and also one of the most tedious, tasks. It’s also crucial to the success of any eCommerce business. That’s why ShipHero created a Warehouse Management System (WMS) specifically designed to make picking faster, easier, and more accurate. Our barcode scanning system cuts error rates by 99.9%, and our built-in reporting features cover everything from COGS to Picker/Packer Efficiency to Replenishment. Best of all, ShipHero is easy to use and integrate, so you can be up and running in no time. So if you’re looking for a picking solution that will save you time and money, ShipHero is the answer.
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For More Information About ShipHero
Whether you want to let go of running your own warehouse or run your warehouse better, you can do both – and so much more – with ShipHero.
Click HERE to Schedule a Meeting with Our Sales Team.
Follow us today on Twitter and LinkedIn.
Dec 9, 2022 | Article
Maintaining an organized warehouse and storage area is a fundamental element for any company, especially when handling substantial quantities of material. This article will delve into the sequence of methods that will optimize your warehouse bin storage system, with a focus on layout, shelving, aisles, and more.
What is a Warehouse Bin Storage System?
A warehouse bin storage system is a method of arranging inventory in specific spaces within a warehouse, aiding in efficient inventory management. Correct identification and labeling bin warehouse systems play a vital role in preventing errors and make it easier for your team to search for items in your own warehouse management system. Discover more about warehouse bin storage systems here.
Understanding the Layout of Your Warehouse
The layout of storage rooms in your warehouse, including the floor space planning, directly impacts the efficiency of your operations. Well-organized aisles, zones, and areas, marked with clear arrows, ensure a smooth pick path for workers. The use of devices like a phone for material tracking can also enhance the effectiveness of your layout, improving service for customers. Since there are 6 different types of warehouses, it’s important to factor in that bin layouts vastly differ from one another.
Naming Convention and Labeling System
Adopting a consistent naming convention and labeling system is crucial. A common method includes a combination of letters and characters to denote different elements, such as racks, shelves, and bins. Additionally, a location numbering scheme can be implemented to ease and further streamline the inventory process. A properly maintained warehouse labeling system can greatly reduce errors and confusion among workers.
Choosing the Right Inventory Management System
The right inventory management software and system can revolutionize your store and warehouse operations. Tools like Shiphero can help manage your stores efficiently by providing real-time inventory updates, enabling you to position your inventory in the most effective way.
Organizing Your Warehouse with Zones and Aisles
Zones and aisles in your warehouse design should be designed with the flow of people and materials in mind. Effective sequencing of these areas in your warehouse layout can help minimize unnecessary movements and maximize efficiency.
Warehouse Labeling and Identification
Warehouse labeling and identification are not just about sticking names to bins. They are about creating a system where every position of available space, every unit, every rack, and every shelf has a unique identifier. This system aids workers in quickly finding and storing items, reducing errors and boosting customer satisfaction.
Implementing Automation in Bin Storage System
Automated Storage and Retrieval Systems (AS/RS) are computer-controlled systems that can significantly improve the efficiency of bin storage systems. They are designed to increase the speed of retrieval, decrease manual labor, and minimize human error at rates. Besides, automated systems can help optimize warehouse space due to their ability to support higher and denser storage.
Inventory Turnover Rate
Inventory turnover rate is a metric that shows the number of times a business has sold and replaced inventory during a specific period. A high turnover rate indicates effective selling and replenishing. This means less capital tied up and reduced storage costs. A well-organized bin storage system can significantly increase this rate by ensuring faster retrieval times and reducing instances of misplaced items.
Seasonal Variation in Inventory
Seasonal demands can cause fluctuations in inventory volumes in warehouses. An optimized bin storage system should have a flexible layout that can be easily reconfigured. During peak seasons, your ideal warehouse layout should be able to accommodate larger inventories without compromising on organization or retrieval times.
Temperature-Controlled Bin Storage
Certain items, like perishable foods or sensitive electronic components, need specific temperature conditions to maintain their quality. Temperature-controlled areas can be included in optimized bin storage systems. Advanced systems can even offer varying temperature zones within the same warehouse floor.
Sustainability in Bin Storage System
An environmentally friendly warehouse is a critical requirement in today’s world. Using recyclable bins, optimizing energy usage, and incorporating natural light where possible are ways to make your bin storage system more sustainable. Additionally, an efficient warehouse layout optimization minimizes unnecessary movements, thereby saving energy.
Regulations and Compliance
Compliance with safety and inventory management regulations is crucial for maintaining your warehouse’s credibility. This includes guidelines for stacking height, aisle width, and hazardous material handling equipment storage, among others. An optimized bin storage system ensures these regulations are met, thereby reducing the risk of legal issues.
Bin Storage System Software
A wide range of warehouse management software is available today that can help manage your bin storage system more efficiently. The features include real-time inventory tracking, automated data collection, and advanced analytics that provide insights into warehouse operations.
Employee Training for Bin Storage System
Despite having an optimized bin storage system, it won’t be effective unless your staff is well-trained in how to use it properly. Regular training ensures that all employees are familiar with the system, can locate items quickly, and know how to handle any issues that may arise. This not only enhances efficiency but also improves workplace safety.
Warehouse Safety and Efficiency: The Essentials
Ensure Safety Protocols in Warehouse Storage Rooms
The best warehouses put safety first. Clear aisles and effective labels help reduce accidents. Warehouse signs can highlight hazards, while safety training teaches staff to handle materials correctly. So, your warehouse becomes a safe place to work, not just an efficient one.
Tech Boosts Warehouse Efficiency
Efficient warehouses use the right technology. Adding RFID tags, barcode scanners, and warehouse management software (WMS) to your setup boosts real-time tracking and cuts down errors. To make these tech tools work, staff need training—a step you can’t skip.
Staff Training Matters
You need well-trained staff for a top-notch warehouse. Regular move reviews and training updates on the storage system, new tech, and safety processes are vital. So, if your staff knows their stuff, your entire warehouse will work better.
Layouts that Cut Costs
A smart, efficient warehouse layout design does more than just organize and keep things smooth—it saves money. Fewer unnecessary movements mean less time wasted, and fewer errors mean less money spent on fixing them. It’s the secret to running a warehouse that’s cost-effective, not just operational.
Regular Audits Keep Things Running Smoothly
You can’t forget about regular audits. They check that everything’s working as it should and spot areas for improvement. With regular audits, your whole warehouse operation will always be at its best, delivering top efficiency and productivity all the time.
Efficient Bin Storage System Setup Tips
Grouping Items: ABC Way
Group your items based on their traits, such as size, weight, and how often they’re used in existing warehouses. The ABC analysis is your best friend here. ‘A’ items are popular, ‘B’ items are less so, and ‘C’ items are the wallflowers. The outcome? Picking processes are streamlined, and workers cut down on their cardio in the warehouse.
Smart Placement
Think of usage patterns. Your fast-moving items should be neighbors with the dispatch areas, slashing retrieval times. Meanwhile, slow movers can chill in the less accessible spots. This “product slotting” tactic ensures every inch of your warehouse floor plan works hard and your productivity is on point.
Labels: A Necessity
Labels on your bin locations are the tour guides of your warehouse. Workers find items quicker when labels on storage bins are readable and packed with info such as product name, SKU, and bin location. So, time spent on the “Where’s Waldo” of items? Significantly reduced.
Vertical Space: Use it
Don’t ignore your vertical wall space – it’s a hidden gem of storage space and capacity. Stack those bins and use taller storage units. But remember, safety first – no heavy or oft-used items in the stratosphere.
Layout Design: The Fishbone Advantage
Design your bin rows’ layout to put Usain Bolt to shame – minimize travel time. A method to swear by is the “fishbone” aisle design, a straight-line path perfect for item retrieval.
Choose the Right Type of Storage Bins
Bigger isn’t always better. Choose the right bin for your items. Some items need bins with dividers; others demand larger, robust bins. The right bin not only keeps your items snug and safe but makes accessing them a breeze.
With these elements, you’re on track to add up to a bin storage system that takes your warehouse layout from good to great.
Final Thoughts on Warehouse Bin Storage System Best Practices
Every company has a reason to keep their warehouse organized. Whether it’s for inventory system efficiency, error reduction, or simply to maintain a well-organized warehouse, implementing these best practices can enhance your operations. A well-structured warehouse layout design, consistent naming conventions, and easy and effective labeling systems all contribute to a more efficient and productive warehouse.
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