Digitise Your Warehouse
HOW DOES WAREHOUSE DIGITISATION BENEFIT THE WHOLESALER?
Adopting digital tools, platforms and processes in the warehouse can increase fulfilment efficiency, improve inventory visibility and accuracy, maximise labour productivity as well as improve space utilisation. It enables staff to spend less time tied to a computer or writing out forms, and instead focus them on picking, packing and shipping.
THE AMAZON EFFECT
Customers now expect their purchases to be shipped in hours and delivered in days thanks to the extremely high standard set by what is now the worlds biggest retailer. They are a “Prime” example (excuse the pun) of digital processes being used to their biggest capability.
However it is not without considerable human interaction – an Amazon warehouse relies on a balance between computers and people.
The right combination of technology in your warehouse and people can replicate the high service levels which customers are now used to.
A 2018 study ‘entrepreneu’ found that 43 percent of consumers surveyed expected “much faster” delivery times that same year.
According to ‘WordStream’ 53% of online shoppers won’t purchase a product if they don’t know when it will arrive.
WAREHOUSING FOR THE WEB
Generally orders which are placed through the web are processed and paid for much quicker and therefore end up as an order for picking in the warehouse quicker – so it is critical that execution within the warehouse is done well.
“Web commerce presents real challenges to business’s distribution networks when it comes to fulfilment.
How well an organization executes, its service promises will depend on how they back up their websites with the systems and logistics know-how to make them work. While many organizations today use the Internet to reach their customers, more and more companies will start using the web to manage their supply chains.”
Karthik Ayyala – SAP solution Architect
EXAMPLES OF EFFECTIVE WAREHOUSING
Full understanding of pack quantities and size
Every supplier should be able to provide this and it is valuable information for planning an efficient warehouse. If packaging and quantities are in difficult sizes, ask the questions: can these be modified? At least can they be decanted into a more accessible format/container?
Defined and consistent space allocation for stock
Many of the biggest frustrations, inefficiencies and even health and safety risks are the inconsistent positioning of stock. The value of consistent stock locations is irrefutable. Keep a plan accessible that indicates these locations and lock it down.
Warehouse layout based on stock pick frequency
In our warehouse, our “fast moving” stock is at the very front of the racking for easy and fast access when needed. This is also combined with stock that is potentially difficult to move meaning less distance to travel from pick location to despatch. This not only significantly reduces picking time but also minimises the risks of accidents and injuries.
Automatic replenishment order triggering
Throughout the wholesale industry, stock-takes are notoriously disruptive. Although these may never be eliminated, using some form of automated stock tracking system will vastly reduce the down time and extra hours that stock takes create, it also improves stock accuracy count.
Pick accuracy targets
Recording pick accuracy builds data and a knowledge of what performance levels to expect.
Performance data collection can be used to set expected hourly, daily or weekly targets. We realise that we could achieve very high pick accuracy rates and set in place a target – to never drop below 99% which we have held consistently year on year since 2012.
From the Metpro Webinar “Become a Digital Wholesaler: Reduce Costs and More Using Digital Platforms”. Follow Metpro on LinkedIn for future events: https://www.linkedin.com/company/metprome
Download the full ‘Become a Digital Wholesaler Report here: http://bit.ly/digitalwholesalerreport
Order Electrical and Mechanical supplies from Metpro Online: http://www.metpro.co.uk
Photo By Tiger Lily from Pexels
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