Warehouse Optimization Can’t Wait!

Warehouse logistics can make or break a company. Whether your company is a small retailer or a large manufacturing distributor, inefficiencies in your warehouse can really eat into profits. In fact, optimizing efficiency in warehouse and distribution centers can easily be one of the largest cost saving measures a company can take.

In order to undertake the task of optimizing your warehouse, you first must know where the money is going. Industry wide problems persist with overstock which can eat into your warehouse’s capital. Viewing overstock as a type of inaccuracy that needs measuring and correcting can put you on the path to improving counts of current stock levels and reducing over supply. The root of overstock is the inability of managers to accurately count their inventory and thus over order to fill a perceived gap. Accurately measuring when and what product is moving allows companies to save money in under-utilized warehouse space.

Savings can also be realized through improvements in productivity. Even the layout of your warehouse can cause costly inefficiencies. Relocating certain products and optimizing storage space can greatly improve productivity of warehouse staff. Introduction of barcode scanners and database technology will also go a long way towards optimizing productivity. Other improvements can come from documenting and exploring more efficient solutions in all warehouse processes.

Often overlooked, a critical component of warehouse optimization is the human element. Employees and managers who feel empowered and supported will provide the best outcomes in terms of accuracy and productivity. Investing in technologies that improve employees’ working conditions and solve their day to day problems can encourage greater outcomes from workers. Analyzing the warehouse culture, incentive programs, and building a team atmosphere are just a few ways to optimize the human element of your warehouse.

MicroAccounting works with distributors to optimize their current business management systems. Give us a call today at 855-876-3773 to learn more.