The fundamental principles of warehouse management are as important today as they were 50 years ago. There is a lot of talk in logistics about new technological innovations that help optimise material handling and warehouse management. But sometimes the basic rules are forgotten as a result, writes Dave Luton in MM&D (Materials Management & Distribution) magazine. According to him, considerable cost savings can be made in the warehouse if the fundamental principles of warehouse management are considered. Measures that were already known before all the sophisticated equipment entered the warehouse.
Forecasting
Firstly, Luton recommends optimising the forecast. A good forecast has an impact on many processes in the warehouse, from stock management to materials handling. Companies that do not have a good forecast are constantly playing catch-up. This leads to a decline in efficiency in storage and materials handling.
Reducing product travel distances
Re-evaluate the cost of material handling. With the rise of e-commerce, orders are becoming smaller, whilst processing them is often more expensive and time-consuming. It is therefore worth taking another close look at how material handling is carried out. First and foremost, it is important to reduce the travel distance of a product within the warehouse. This involves considering not only the ‘horizontal’ distance, but also the distance that must be covered vertically. For optimum picking efficiency, the ‘knee to shoulder’ distance should always be used as the benchmark. Any product located outside this range reduces efficiency.
No empty forklifts
Ensure that forklifts never travel empty. A forklift is often assigned just one task: receiving or dispatching. On the return journey, it is often empty. You can prevent this by having both receiving and dispatching take place at the same dock face.
Product packaging
Check whether your product packaging is still adequate. Packaging is often optimised for retailers, but in the world of e-commerce, different – and often smaller – packaging is required. By optimising this, you can pack and transport your orders more efficiently.
