How to Improve Warehouse Operations: 51 Tips and Best Practices

“The first method is to simply assign each carrier or delivery a specific time or window of time to deliver. The second is to assign either a specific or recurring daily, weekly, or monthly schedule to arrive. This allows you to schedule staff accordingly and make the best use of your dock.

“Vendor receiving appointments are absolutely critical if you share a dock or ship both inbound and outbound out of the same area. Any advance paperwork or data should be provided before the delivery is made. By requiring appointments and information about incoming loads, surprises are minimized.” – Back-to-Basics Part 1: Receiving, Exceed Consulting

9. Use ABC Analysis to prioritize items. “ABC is a hierarchy of your most valuable items to the least (by dollar value). This is also referred to as the Inventory Categorization Method. Since you may not value your entire stock equally, this control will have you focusing your time and resources on items that make you the most money.

“A- items are big-ticket or priority stock. These goods require tighter controls and monitoring since they are your largest revenue and cost contributors. Due to their costs, you would most likely be carrying smaller volumes on hand. Since these items are heavily sought after, they should be stored under ‘lock and key.’ In addition to security, A-list products will require higher frequencies of stock reviews and re-ordering. This ensures that you have an adequate supply.

“Conversely, C-items have lower values but you may be carrying large volumes of them. For example, if you owned a hardware store, nails in bulk may be considered a C-item. B-items sit right in the middle for value, volume, frequency of stock reviews and re-orders.” – Colleen Rodericks, Inventory Management Techniques and Best Practices, inFlow Inventory; Twitter: @inFlowInventory

Tips for Improving Warehouse Productivity

10. Analyze picking methodology. “As with ergonomic considerations (i.e., designing the workstation to suit the particular work being done), it’s also important to determine whether the current picking methodology appropriately suits the organization. Making the right order picking choices directly impacts supply chain productivity, so it’s not something to be taken lightly.” – Nicole, Ten Ideas for More Efficient and Productive Warehouse Operations, Expansion Solutions Magazine; Twitter: @ExpansionSolMag

11. Communicate effectively with workers. “Since both inbound and outbound freight can result in changes to its warehouse slotting system, all parties and systems must communicate effectively. Communication should include as much information as possible without becoming burdensome. In other words, your systems and team members should provide information critical to each pick ticket or shipment, but this information must be just enough to allow for the successful completion of an order.” – 10 Ideas for More Efficient and Productive Warehouse Operations, Veridian; Twitter: @VeridianInfo

12. Consider incentives for workers. “Warehouse fulfillment involves a great deal of manpower. Storing and retrieving products and pick-and-pack services are going to be large parts of your business. As a result, productivity can be improved by finding ways to spur and motivate employees. Plans for incentive pay or reward systems, especially in pick-and-pack areas, can help encourage more activity and better workflows.” – How to Improve Warehouse Productivity, APS Fulfillment, Inc., Twitter: @apsfulfillment

13. Implement custom kitting strategies. “The best way to increase warehouse productivity is by implementing custom kitting strategies. Grouping and bagging components that are often used together into custom kits can help reduce inventory handling time and make better use of warehouse storage space. For businesses that regularly perform the same types of repairs and procedures, custom kitting can help to cut down on time-consuming errors and make the inventory management process more fluid under stringent deadlines.” – Jamie Saltos as quoted in Warehouse Productivity: 15 Experts Reveal Their Top Tips for More Efficient and Productive Warehouse Operations, Camcode; Twitter: @Camcode

14. Improve employee comfort. “Warehouse work can be tiring. It’s important to make the experience as comfortable as possible, with features such as air conditioning and soft flooring to reduce foot and ankle pains. If possible, make sure your employees have a rest area and access to a kitchen. Many studies have shown that music can help improve productivity. Consider how to add music. Little things can add to making a big difference.” – Christine Wheeler, 8 Genius Ways to Boost Warehouse Productivity, Newcastle Systems; Twitter: @NewcastleSys

15. Invest in quality equipment. “Investing in quality equipment is essential for improving productivity. Warehouses will often purchase equipment that is being sold at a cheap price in order to reduce their expenditure. However, staff cannot work efficiently without adequate equipment. Products that regularly break will impact the amount of work being completed. It might initially seem cost-effective to buy cheap equipment but cost should not only be monitored in monetary terms if you are running a warehouse; you should also measure cost in terms of productivity.” – Richard Scholes as quoted in Best Ways to Boost Warehouse Productivity: 25 Warehouse Pros and Logistics & Operations Experts Reveal the Single Best Way for Warehouses to Improve Productivity, Wonolo; Twitter: @Wonolo

16. Measure and communicate the right metrics. “When it comes to metrics, William Bauer, Managing Director of Royce Leather, hits the nail on the head, saying, ‘You can’t improve something you haven’t measured.’

“William asks: ‘Does your operation capture and manage critical KPIs? Do you know your critical productivity and costs on shipped orders, cost per box, and cost per line shipped?’ Before you can improve, you need to have a thorough understanding of these numbers, and how variables affect your warehouse’s productivity. Only then, William says, can you report feedback to your employees.

“Hannah Lincoln, a lead solution consultant at itas and Sage Software, iterates the importance of communicating the metrics to staff in real-time, as a motivational tool. She recommends displaying up-to-date data on the productivity of the warehouse – on a team or individual level.

“‘By giving them real-time, up-to-date information, you will find that you maintain high productivity levels because they can self-monitor their own performance,’ says Lincoln.” – Expert Tips for Increasing Warehouse Productivity, RMIT University; Twitter: @RMIT

17. Minimize errors. “Countless man hours and dollars are lost each and every year in the warehouse industry due to improperly labeled items, lost and misplaced products, and incomplete and/or incorrect orders. The right warehouse technology allows you to trim out all of these sources of waste by adding data verification and alerts to your normal operations. A proper warehouse management system will notify you of apparent errors, identify accuracy issues, and include an ongoing maintenance plan to keep your warehouse organized and clean. If your team is able to spend ten minutes a day checking accuracy and correcting small errors, they won’t be spending two hours a day hunting for products that can’t be found. Warehouse productivity increases when all parties are engaged in keeping things in order every day.” – Reid Curley, How to Improve Warehouse Employee Productivity, Archon Interactive; Twitter: @WaveTrak

18. Purchase and install newer equipment. “Purchase and install newer equipment, such as doors, lifts, and computer systems. Newer equipment will run faster and break down less. Installing new equipment shows employees that you are invested in the business and in making their jobs easier. This increases morale, which has a positive effect on productivity.” – Carl Carabelli, How to Increase Productivity in a Warehouse, Houston Chronicle; Twitter: @HoustonChron

19. Schedule maintenance plans. “Machines will break down at some point. If you are not ready for such an event, the downtime will increase. By scheduling maintenance plans, you can ensure that the machines are serviced regularly. When you implement strict inspections and maintenance plans, you can identify problems before they become too serious.” – 10 Warehouse Productivity Tips for Reducing Downtime Today!, Arkieva; Twitter: @Arkieva

20. Systematize workstations. “Clutter and efficiency have an inverse relationship. Meaning, the fewer time employees spend searching for the proper tools they need to complete their job, the better their productivity. Organize workstations to reduce errors and improve your organizational goals.” – Adam Heck, 5 Tips to Improve Warehouse Productivity, Rack Express; Twitter: @rackexpress

21. Utilize cross-docking to increase productivity. “Superior logistics planning includes cross-docking wherever possible. Cross-docking is the practice of unloading materials from an incoming vehicle and immediately loading these same materials directly onto outbound vehicles with minimal or zero warehousing intervals between. Think of this as ‘Just-in-Time’ shipping. Cross-docking is an ideal solution when product freshness is paramount. Cross-docking evolved out of a need to get perishable goods to market quickly. This procedure is one of the key inclusions an organization can make to its portfolio of standards whose function is to drive manufacturing and distribution center improvements.” – Anica Oaks, 5 Lean Best Practices for the Warehouse, Apriso; Twitter: @3DSdelmia

Tips for Improving Warehouse Safety

22. Consistently train on safe logistics operations. “There’s a whole universe of accident causes, but certain underlying reasons are clearly identifiable. Many accidents come in the form of slips, trips, and falls, as well as injuries sustained while lifting. Often, they happen when people are hurrying and skirting basic safety procedures. Associates need to be trained rigorously to be more conscious of predictable hazards.” – How to Improve Logistics Safety Performance in Your Operations, Kane Is Able; Twitter: @kaneisableinc

23. Create a safety culture. “Creating a safe warehouse does not happen by accident, it happens by planning to prevent accidents. Although forming a safety committee is a good first step toward building better worker safety practices, warehouse operators also need to work toward creating a ‘safety culture’ inside their facilities.

“‘Warehouse managers are accountable for safety. They need to be aware of that, and lead by example,’ says [health, safety, and environmental manager for Flour Constructors, Alex] Sierra. ‘All company employees should feel that safety is their responsibility—that is part of building a safety culture.’

“‘Maintaining an efficient safety culture is a continuous effort,’ [vice president of Safety Resources, Gary] Gagliardi agrees. ‘Safety is not a one-time deal; companies cannot accomplish a culture of safety with one or two yearly meetings. But emphasizing safety throughout the company has a positive influence on its success.'” – John Edwards, Warehouse Safety: It’s No Accident, Inbound Logistics; Twitter: @ILMagazine

24. Ensure safety equipment is used at all times. “In the warehouse, it is vital that forklifts or hydraulic dollies are used to lift items that are too heavy. Appropriate eyewear and hard hats should also be worn when required. Employees should be aware of emergency exits and the sprinklers installed in the roof should not be blocked at any time. Safety equipment is implemented in order to minimize workplace injury, so although it may be time-consuming to initiate its use, it does pay off in the long run.” – Warehouse Safety Principles: 6 Key Guidelines to Keep Your Workplace Safe, Adaptalift Hyster; Twitter: @aalhyster

25. Implement a real-time location system (RTLS). “Real-time location systems (RTLS) offer much more sophisticated geolocation technology, providing more in-depth data for monitoring. RTLS automatically tracks the locations of chosen objects in real time and builds on the capabilities of RFID.

“RTLS tags can be attached to objects and people, enabling you to track and monitor their precise location continuously, not just when they come near a truck-mounted reader. As every tag continuously reports its location, you can collate a much more accurate picture of exactly where those objects are at any time across the workplace. This is particularly valuable when protecting employees in a dangerous environment.

“For example, if an employee needs immediate assistance they can push a call button connected to their tag. The accuracy of the tag means that even if that employee moves location, responders can find them quickly.” – Tim Young, The Top 3 Technologies to Improve Warehouse Safety, Vero Solutions; Twitter: @solutions_vero

26. Implement safe routes and traffic lanes with floor tape. “You should already know that keeping your pedestrian staff separate from your vehicle and forklift operators is essential to avoid dangerous collisions, but implementing safe routes and traffic lanes needn’t be costly or complex. With floor tape, you can mark out areas of your warehouse to keep pedestrians out of harm’s way and ensure vehicles stay on the right side of the path. The best thing about using tape is that it can be easily and quickly changed to suit a new layout or system of working, as and when you need to operate in different areas.” – 7 Easy Ways to Improve Your Warehouse Safety Today, Health & Safety Training Limited; Twitter: @hstukcom

27. Implement strict standards for safety. “Don’t make the warehouse an unsafe place for employees. If the staff isn’t trained properly, the result will be numerous accidents and high injury rates. Ensure that only well-trained and experienced employees operate heavy-duty equipment such as forklifts. Mark the safety protocols in the warehouse, such as indicating a safe distance from danger zones.” – Tips on Improving Warehouse Productivity, Material Handling & Logistics; Twitter: @MHLeditor

28. Keep spaces clean and clear. “When trash and excess merchandise are left out of place, they can bog down operations. Create a regular weekly cleaning schedule so that materials and garbage don’t get out of hand. While maintaining safety by keeping everything in its place, you’ll also create a system for locating and properly placing damaged or returned inventory. Part of the clearing process should include the creation of signage that marks locations where items belong. New employees can follow directions without interrupting busy senior employees, while landmark and directional signs dress up the space and serve a useful purpose.” – Linda Ray, How to Increase Productivity in a Warehouse, azcentral; Twitter: @azcentral

29. Post-safety expectations. “Warehouse supervisors should ensure all safety expectations are posted clearly in close proximity to all equipment—forklifts, hydraulic dollies, hand jacks, etc. Doing so assures that employees have constant visual reminders of the inherent dangers of using such equipment, and the safety precautions they should take to avoid injury.” – Warehouse Safety Checklist: 8 Things Every Manager Should Review, Legacy Supply Chain Services; Twitter: @LEGACYscs

30. Prioritize warehouse safety. “For those companies that fail to promote safety, it is often due to insufficient time, inadequate resources, or the opportunity to save money through corner-cutting. In the long run, however, a safe warehouse environment delivers important cost savings through higher employee satisfaction and increased productivity, fewer workplace disruptions, and reduced absenteeism and equipment downtime. You can extend the life of your warehouse infrastructure, such as storage and material handling equipment, as well as reduce damage to inventory. Most importantly, don’t assume that a safe workplace carries a jaw-dropping price tag.