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Warehouse Management: Top 6 Order Picking Problems and How to Solve Each

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily, Warehousing

Warehouse Management: Top 6 Order Picking Problems and How to Solve Each

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One thing easily stands out when it comes to warehouse management: you must be prepared to organize, maintain and manage it as best as you can. But while this may sound like an easy-to-do job, the truth is that you can’t do it on your own.

While optimizing the entire process may help, your business may still be exposed to errors that slow down its operations and affect its bottom line. If your business has started experiencing order-picking problems, it is time to learn how to fix them.

As a warehouse executive, you can showcase your leadership skills by teaching your team how a warehouse management system can assist in addressing the issues at hand. Below is a look at the top six most common problems you’ll likely face and how to handle each.

1. Accidental Redundancies

A cursory look at any warehouse operation shows multiple operations happening at any one time. Every ongoing process follows a particular order which ensures that nothing goes wrong. In an ideal situation, none of these operations collides or get repeated severally.

The presence of redundancies in your operations will only lead to mistakes and lost time.
To address this, implement a warehouse management system to automate your operations. With it, you can rest assured that employees won’t pick, mark, and mistakenly ship one order multiple times. Integrating barcoding tech into it will assist in preventing duplication.

2. Misplaced Items

How often do your workers head to where a product is supposed to be, only to find that it has been moved? Marking and placing items in the wrong bin or category causes your pickers to spend additional time trying to trace the missing item. This, in turn, affects trucking efficiency!
Improper marking leads to delayed orders, delayed shipping, and frustrated customers.

A frustrated customer will, in most cases, leave a negative review affecting your conversion rates. You can increase efficiency by using a warehouse management system. The system tracks the location of every product in the warehouse, allowing for better order fulfillment.

3. Employees Choose the Wrong Product or Quantity

When an employee fulfilling an order chooses the wrong product or quantity, you hope that the packers will notice the issue. Regrettably, these are some of the problems that go unnoticed in warehouses where speed is critical to order fulfillment.

Sending out an incorrect order is expensive and makes your business look unprofessional, especially when there are too many returns. Remember that too many complaints online regarding your order fulfillment rates will affect your overall business reputation.

Once again, you can solve this issue by ensuring all products being fulfilled get scanned using a barcode scanner. The scanner will send a notification to the pickers ensuring this mistake gets rectified before the product gets to the hands of the packers.

During dispatch, the packer can then scan it again to confirm all its details are correct.

4. Your Warehouse Layout Is a Mess

A 2018 survey on warehouses by Logistics Management established that only 68% of all warehouse space is well utilized. And the clearest indication that something is wrong is when you find that your vertical space is open, aisles are cramped, and employees are confused.

The first thing that you’ll ask yourself here is how a warehouse management system can help solve this mess. What you may not realize is that many such programs can use gathered data and 3D modeling to provide layout recommendations.

Using the information the system provides can also offer a glimpse into which products will soon go into demand, depending on the season. From this, you can have the employees update the warehouse locations and layout of items accordingly, bringing the in-demand items closer.

5. Relying on the One Order Per Picker System

Whenever a new order comes in, what’s the recommended action? Does one picker search the warehouse for every product on the order list, or do you send multiple selectors to look for different products? While at it, have you considered using warehouse zoning for product pickups?

Different strategies work differently for each warehouse. But regardless of how you look at it, having a picker locate one product per run is ineffective. It will lead to the wastage of valuable resources making the whole order fulfillment process last longer than it should.

Often this happens in warehouses where pickers have to wait for printed order papers before scouring for products. With a sound warehouse management system, you can reduce the time wasted by using coordinated workflows.

The system will assign specific runs to one employee, enabling them to collect multiple items simultaneously. In such a scenario, the person on that run will get all the items on their order sheet from one zone, leading to better order fulfillment rates.

6. Who Selected a Certain Order?

Lack of proper accountability in the warehouse leads to increased irresponsibility. Your people will become demotivated, and their productivity will begin to decline. A functional warehouse needs visibility and accountability.

It calls for you to have a way to know who picked what order and at what time.
An ideal warehouse management system can help you set up detailed workflows. The workflows allow you to track the progress of each order. Using it, you can communicate with your people, monitor their performance, and send notifications whenever necessary.

Besides communication and alert notifications, such a system also increases order traceability. If a problem occurs with the order, you can use the system to track its progress to try and determine when the issue may have happened and take measures to prevent a recurrence.

Conclusion

Warehouse management is among the most essential processes that typically occur in a warehouse. Given its importance, this is not something that you can afford to implement incorrectly.
Considering that most processes in the warehouse are linked in a way, a problem in one phase can lead to costly mistakes in the subsequent phases. All the six problems mentioned above provide a clue about what can go wrong in a warehouse at any time.

Fortunately, you can prevent this by educating yourself and your people on the warehouse challenges you will likely face and how to deal with each. In the long run, you can implement a warehouse management system to reduce the damage they may cause or prevent them from happening.

Author Bio

Sean Richardson is the owner of Complete Plumbing Solutions, a full service plumber in Cork.

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily

Warehouse Management: Top 6 Order Picking Problems and How to Solve Each 

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One thing easily stands out when it comes to warehouse management: you must be prepared to organize, maintain and manage it as best as you can. But while this may sound like an easy-to-do job, the truth is that you can’t do it on your own.

While optimizing the entire process may help, your business may still be exposed to errors that slow down its operations and affect its bottom line. If your business has started experiencing order-picking problems, it is time to learn how to fix them.

As a warehouse executive, you can showcase your leadership skills by teaching your team how a warehouse management system can assist in addressing the issues at hand. Below is a look at the top six most common problems you’ll likely face and how to handle each.

1. Accidental Redundancies

A cursory look at any warehouse operation shows multiple operations happening at any one time. Every ongoing process follows a particular order which ensures that nothing goes wrong. In an ideal situation, none of these operations collides or get repeated severally.

The presence of redundancies in your operations will only lead to mistakes and lost time.
To address this, implement a warehouse management system to automate your operations. With it, you can rest assured that employees won’t pick, mark, and mistakenly ship one order multiple times. Integrating barcoding tech into it will assist in preventing duplication.

2. Misplaced Items

How often do your workers head to where a product is supposed to be, only to find that it has been moved? Marking and placing items in the wrong bin or category causes your pickers to spend additional time trying to trace the missing item. This, in turn, affects trucking efficiency!
Improper marking leads to delayed orders, delayed shipping, and frustrated customers.

A frustrated customer will, in most cases, leave a negative review affecting your conversion rates. You can increase efficiency by using a warehouse management system. The system tracks the location of every product in the warehouse, allowing for better order fulfillment.

3. Employees Choose the Wrong Product or Quantity

When an employee fulfilling an order chooses the wrong product or quantity, you hope that the packers will notice the issue. Regrettably, these are some of the problems that go unnoticed in warehouses where speed is critical to order fulfillment.

Sending out an incorrect order is expensive and makes your business look unprofessional, especially when there are too many returns. Remember that too many complaints online regarding your order fulfillment rates will affect your overall business reputation.

Once again, you can solve this issue by ensuring all products being fulfilled get scanned using a barcode scanner. The scanner will send a notification to the pickers ensuring this mistake gets rectified before the product gets to the hands of the packers.

During dispatch, the packer can then scan it again to confirm all its details are correct.

4. Your Warehouse Layout Is a Mess

A 2018 survey on warehouses by Logistics Management established that only 68% of all warehouse space is well utilized. And the clearest indication that something is wrong is when you find that your vertical space is open, aisles are cramped, and employees are confused.

The first thing that you’ll ask yourself here is how a warehouse management system can help solve this mess. What you may not realize is that many such programs can use gathered data and 3D modeling to provide layout recommendations.

Using the information the system provides can also offer a glimpse into which products will soon go into demand, depending on the season. From this, you can have the employees update the warehouse locations and layout of items accordingly, bringing the in-demand items closer.

5. Relying on the One Order Per Picker System

Whenever a new order comes in, what’s the recommended action? Does one picker search the warehouse for every product on the order list, or do you send multiple selectors to look for different products? While at it, have you considered using warehouse zoning for product pickups?

Different strategies work differently for each warehouse. But regardless of how you look at it, having a picker locate one product per run is ineffective. It will lead to the wastage of valuable resources making the whole order fulfillment process last longer than it should.

Often this happens in warehouses where pickers have to wait for printed order papers before scouring for products. With a sound warehouse management system, you can reduce the time wasted by using coordinated workflows.

The system will assign specific runs to one employee, enabling them to collect multiple items simultaneously. In such a scenario, the person on that run will get all the items on their order sheet from one zone, leading to better order fulfillment rates.

6. Who Selected a Certain Order?

Lack of proper accountability in the warehouse leads to increased irresponsibility. Your people will become demotivated, and their productivity will begin to decline. A functional warehouse needs visibility and accountability.

It calls for you to have a way to know who picked what order and at what time.
An ideal warehouse management system can help you set up detailed workflows. The workflows allow you to track the progress of each order. Using it, you can communicate with your people, monitor their performance, and send notifications whenever necessary.

Besides communication and alert notifications, such a system also increases order traceability. If a problem occurs with the order, you can use the system to track its progress to try and determine when the issue may have happened and take measures to prevent a recurrence.

Conclusion

Warehouse management is among the most essential processes that typically occur in a warehouse. Given its importance, this is not something that you can afford to implement incorrectly.
Considering that most processes in the warehouse are linked in a way, a problem in one phase can lead to costly mistakes in the subsequent phases. All the six problems mentioned above provide a clue about what can go wrong in a warehouse at any time.

Fortunately, you can prevent this by educating yourself and your people on the warehouse challenges you will likely face and how to deal with each. In the long run, you can implement a warehouse management system to reduce the damage they may cause or prevent them from happening.

Author Bio

Sean Richardson is the owner of Complete Plumbing Solutions, a full service plumber in Cork.

warehouse
Global Logistics, Global Trade Daily, Technology, Warehousing

Efficient Warehouses Fit Sustainable Operations

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Sustainability has become an important issue for warehouse management in the US. Reducing the environmental impact of operations is a big challenge that can be overcome by improving process efficiency. In many cases, this is achieved by implementing warehouse automation. Efficient, automated processes need less energy, emit fewer greenhouse gases, and can do more within compact facilities. However, by choosing an automation partner that also champions sustainability, warehouse operators can truly maximize these benefits.

Hans Jongebloed, Senior Postal and Parcel Expert at Prime Vision, a global leader in computer vision integration and robotics for logistics and e-commerce, looks at sustainability challenges facing US warehouses and how the company reduces environmental impact.

Sustainability considerations for warehouses

A good place to start the journey to a sustainable warehouse is the facility itself. Solar panels, modern insulation, and a renewable energy supplier can greatly reduce the carbon footprint of operations. Placement is another factor to consider. A giant warehouse in an area of great natural value is undesirable aesthetically and ecologically, but logistics also play a part. Locating a compact warehouse in an optimal area for local deliveries, with good road connections, away from nature hotspots, minimizes environmental damage and traffic pollution.

Sustainability also applies to people. Thankfully, the days of warehouse workers walking miles carrying heavy loads week after week are almost behind us. With robots and other material handling solutions, personnel are no longer subjected to this level of manual labor, ensuring a happier, healthier workforce that is more willing to stay on.

While these sustainability goals can be reached, a particular industry challenge illustrates how warehouses can further improve the efficiency of operational processes and reduce environmental impact.

The point of no return

We’ve all indulged in clothes shopping at some point, and many of us choose to do it online. However, while an outfit can be easily tried on at the store, e-commerce customers do that at home, presenting warehouses with a big sustainability problem: returns. Millions of them.

One US logistics company stated that the CO2 cost of returning e-commerce purchases was similar to the output of 3 million cars.[1] While e-commerce returns have dropped slightly compared to 2020 and 2021, they still amounted to $ 203.22 billion in 2022 (18% of total online purchases). The decline is expected to continue, hitting 14.7% in 2026.[2] Despite this trend, returns will continue to be a challenge for e-commerce businesses in the US.

Returns are a big sustainability issue for e-commerce, as they constitute a high volume of products swimming against the stream of the normal shipping process. First, the item needs to travel back to a distribution center (often different from where it came from), generating transport emissions. Then, it is a long, cumbersome manual procedure to identify the product, check its condition, and sort it properly. This often requires large numbers of personnel, generating extra CO2 from commuting. If an item can’t be recycled or resold, it ends up as landfill, producing unnecessary waste. Needless to say that in the era of unlimited free returns, all these processes can also create extra costs for sellers.

This is clearly an area for improvement. However, enhancing the efficiency of the process flow offers a solution not just for returns, but any warehouse operation.

Automation equals efficiency

Naturally, automation is one of the main answers to this efficiency challenge, and thankfully, increasing efficiency always has a positive impact on sustainability.

Using the returns example, being able to quickly check products with computer vision systems, transport goods to appropriate areas for resale or recycling with robots, plus spot trends and areas where processes can be improved with analytics software can greatly expedite operations. Furthermore, it requires fewer personnel to function. By harnessing renewable energy to power automated equipment, warehouse operators can also mitigate the impact of the electricity demand, delivering these efficiency benefits sustainably.

Automating warehouse processes in this manner allows fulfillment and returns to be conducted on a reduced timeframe, within a more compact site, all while minimizing emissions, energy consumption and, effectively, lowering the operating costs. This means that sustainability goals can be met at every level of operations. However, choosing the right solutions can also bring additional benefits.

Sustainable approach to automation

At its facility in Richmond, Virginia, Prime Vision is working not just to provide products that enable the efficient, sustainable running of warehouse operations but is also reducing the carbon cost of the solutions themselves.

Robots are a critical component of a modern automated warehouse but are complex pieces of equipment that are intensive to produce. Consequently, Prime Vision focuses on reducing the impact of maintaining robots. A repair-rather-than-replace approach helps improve sustainability, but when a robot is beyond repair, Prime Vision rescues as many parts as possible to be used as spare components. Good-quality parts are fitted to other robots or used for in-house research – effectively recycling the components. Inspections identify and separate sub-par components, so there is no risk of fitting the robots with inferior parts. Localized repair facilities further ensure that spares and maintenance personnel can reach customers without generating the excessive carbon emissions associated with long-distance travel.

Software is another area of focus. Maintenance can be carried out remotely, so nobody needs to drive to site to carry out updates. Prime Vision also continually optimizes its software to run more efficiently, which reduces the number of servers required. Expanding on hardware and helping customers to collate facility computing power in an optimal, well-monitored space can save additional energy during installation and operation. Prime Vision applies new IT developments too, like hyper-converged infrastructure. Such cloud-style solutions with high scalability

and efficiency can eliminate the need for large quantities of servers on-site, allowing customers to downsize infrastructure while adding the required flexibility.

Choosing the right partner

Ultimately, to save the planet, the whole supply chain must work together to achieve the most sustainable logistics operations. This includes cooperation between warehouses and the companies that supply automation solutions to them. While the increased process efficiency enabled by robots, computer vision, and analytics software can greatly reduce the carbon footprint of warehouse operations – there is the provider to consider too.

Prime Vision is dedicated to reducing the environmental impact of its products and operations. A dedicated sustainability team continually assesses carbon footprint, identifying focus areas and actively lowering the company’s emissions. Along with its solutions and local presence, this ensures that while Prime Vision contributes to improving the sustainability of US warehouse operations, like its customers, it is also working on reducing the impact of the overall supply chain.

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily, Warehousing

The Crucial Role of Security in Effective Warehouse Management

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The issue of security in warehousing is as old as the concept of centralized storage itself. From the ancient granaries of Egypt to the sprawling distribution centers of today, the need to protect amassed goods from theft, damage, and unauthorized access has always been paramount.

However, in today’s complex warehouse management ecosystem, security has taken on an even more crucial role. In an era where supply chains span continents and warehouses act as critical hubs in these networks, a single security breach can have far-reaching consequences. It can disrupt operations, lead to significant financial losses, and even damage a company’s reputation.

The Importance of Security in Warehouse Management

Security is critical in any operation, but warehouses have plenty of unique challenges to deal with. All that stock in one convenient location makes warehouses a lucrative target for a variety of threats.

These threats not only come in the form of physical theft but also include a range of other security risks that can have significant impacts on warehouse operations. Let’s look at some of the key challenges:

  •       Workplace fraud/theft: The annual report by the Association of Certified Fraud Examiners found that 5% of a business’s revenue is lost to workplace fraud. A staggering 86% of all fraud was “asset misappropriation” or theft in other words. Warehousing is highly vulnerable to this type of threat and it isn’t a surprise to find the report listed warehousing in the five highest median losses by industry.
  •       Unauthorized Access: Warehouses often house valuable goods, making them attractive targets for intruders. Unauthorized access can lead to theft, vandalism, and potential disruption of warehouse operations. Implementing robust access control systems is crucial to prevent such incidents.
  •       Cyber Threats: In the digital age, warehouses are not just physical spaces but also part of a larger, interconnected IT infrastructure. This makes them vulnerable to cyber threats such as data breaches and ransomware attacks, which can compromise sensitive information and disrupt operations.
  •       Operational Disruptions: Security isn’t just about preventing theft or cyber-attacks. It’s also about ensuring the smooth operation of the warehouse. Incidents like fire, equipment failure, or even accidents due to a lack of safety measures can cause significant operational disruptions.

The above list only touches on the threats that the industry faces, but it does illustrate the point that security should be an integral part of warehouse operations.

Security Measures in Warehouse Management

Understanding the threats is the first step to more secure warehouse management. Based on this foundation, it is possible to create a comprehensive and integrated security system that uses the latest generation of equipment and technology to boost warehouse security.

Here are some key measures that can be implemented:

  •       Surveillance systems: Advanced surveillance cameras provide real-time monitoring of the warehouse premises, helping to deter potential threats and allowing for rapid response in case of any security breaches.
  •       Access control systems: Sophisticated access control systems, including key fob building entry systems, restrict unauthorized entry, ensuring that only authorized personnel can access the warehouse. These systems can be particularly effective in preventing theft and unauthorized access.
  •       Cybersecurity measures: With warehouses now part of larger, interconnected IT infrastructures, robust cybersecurity measures are crucial. These can include firewalls, secure networks, and regular system updates to protect against cyber threats.
  •       Safety protocols and equipment checks: Regular safety protocols and equipment checks can help prevent operational disruptions, ensuring that the warehouse functions smoothly and efficiently. This includes everything from fire safety measures to regular maintenance of warehouse machinery. Security can play a large role in reducing time lost through human error and other operational disruptions.

The good news for warehouse managers is that the technology that powers these security measures is evolving rapidly and becoming increasingly sophisticated.

The Future of Warehouse Security

The rapid development of technologies like AI and cloud computing is helping all aspects of warehouse management, including security. For instance, AI and drones are now being used to monitor inventory.

When it comes to security, such technologies are potential game changers. Here are just a couple of ways that technology is going to shape warehouse security in the future:

  •       AI-Powered Surveillance: Artificial Intelligence (AI) can be used to enhance surveillance systems, enabling them to detect unusual activity and respond in real-time. This can significantly improve the effectiveness of security measures. 
  •       IoT-Enabled Access Control: Internet of Things (IoT) technology can be used to create smart access control systems that not only restrict unauthorized access but also provide valuable data on personnel movement within the warehouse.

As these technologies continue to evolve and become more integrated into warehouse operations, we can expect a future where warehouse security is not just about protection, but also about enhancing efficiency and productivity in warehouse management.

Security: At the Core of Successful Warehouse Management

Security is more than just making sure a few items of stock don’t “wander off” into the night. Rather, it is an integral part of warehouse operations that can boost efficiency and profits.

Put simply, embracing security innovations ensures efficient, profitable warehouse operations.

 

 

 

warehouse
Global Logistics, Global Trade Daily, Technology, Warehousing

On the Agenda at the CILTSA Warehouse Automation Conference: Robots in the Warehouse and Safe Racking

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Autonomous mobile robots (AMRs) are revolutionizing the warehousing landscape internationally, setting new standards for expectations and deliverables. This exciting technology is already being used to a limited extent in South Africa – with companies reporting wide-ranging benefits.  Andy Cooper of European Conveyors and Components, a specialist in materials handling and technology, will be exploring this topic at the upcoming Warehouse Automation hybrid conference hosted by the Chartered Institute of Logistics and Transport: South Africa, taking place on 23 May at The Garden Venue in North Riding, Johannesburg and online.

In digital technology company Zebra’s most recent global Warehouse Vision Study published in 2022, 99 per cent of warehouse operators expected to deploy some form of AMRs in the next five years, even though only 27% say they are using AMRs in their warehouses today.

Numerous benefits

Cooper outlines just some of the benefits of including AMRs in warehouses: increased efficiency; rapid ROI (one to three years), quick deployment (AMRs can go live within three to four months); better utilization of storage space (by up to 30%), increased picking accuracy (up to 99.9 per cent); and, safer operations.

Contrary to popular belief, automation does not automatically take the place of people and so need not result in job losses. “Many warehouse companies are seeing that AMRs are making warehouse jobs less stressful, as operators’ jobs require less walking and a reduced amount of handling and picking,” says Cooper. “Indeed, warehouse workers have reported increased productivity and a reduction in the mistakes they make. AMRs have enabled them to advance to new roles and opportunities.”

Cooper, who recently travelled to several countries in Europe to explore this new technology, concludes: “Technology is huge enabler and problem-solver.”

Racking inspection and safe racking

Storage and racking systems can pose potential dangers in a warehouse. Even a properly stationed pallet rack does not guarantee that product will not fall from the shelves. Material Handling Equipment (MHE) are one of the most common causes of accidents in warehouses. Leader Nkala, SHERQ Director at leading local racking and shelving company Acrow, will be sharing practical safety tools and tips at the CILTSA warehouse conference on this important topic.

Nkala will share the company’s 10 Racking Health and Safety Commandments, highlight the compliance requirements of the Occupational Health and Safety Act (OHSA), and stress the importance of ongoing training.

The full conference program includes talks on:

  • Warehouse Automation: The Risks and Benefits by Martin Bailey FCILT –Industrial Logistic Systems
  • Robots in the warehouse by Andy Cooper – Managing Director: European Conveyors & Components
  • How to optimize digital transformation in the warehouse by Munya Husvu – CEO: ISB Optimus
  • The current challenges we are facing in warehousing preventing automation and how to overcome them by Gerhard van Zyl – Group Operations Director: AsimoTech
  • Safety and Technology in the logistics environment by Annah Ngxeketo – CEO: Mamoja Trading and Projects
  • Warehouse safety awareness and inspection by Leader Nkala – SHERQ Director: Acrow

CILTSA’s conference is being hosted in collaboration with the Transport Forum. The event sponsors are Acrow, Fumani Holdings, ISB Optimus, Mamoja Trading and Projects, Toyota Material Handling, CFAO Equipment and Tendai Mhlanga Photography . Event supporters include CILTSA interest group Women in Logistics and Transport: South Africa (WiLATSA), the African Women in Supply Chain Association and Sincpoint.

To sign up for this free-to-attend event in person, register at https://www.transportsig.com/component/dtregister/23-may-2023-737/register?Itemid=99999

If you wish to attend online, click on https://us02web.zoom.us/meeting/register/tZMlc–gqz4sEtdBC20H9ItPB_NGnjhIo92o

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Archives, Uncategorized

How to Best Manage Labor Planning Through Changing Freight Demand

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Managing and implementing a labor program through changing freight demand can be challenging for warehouse officials and supply chain and logistics companies. With the unpredictable economic nature of freight demand that started slowing midway through 20221, it can be difficult to accurately forecast the amount of work that needs to be done, leading to potential overstaffing, or understaffing.

However, these companies need to understand that developing a labor program is a journey, in which identifying proper standards is accomplished through steps, and change management with associate involvement is key to ensuring organizational adoption. With the right strategies in place, companies can effectively develop a labor program to ensure that they are prepared through this fluctuating freight demand. 

Track Activities On The Warehouse Floor 

One of the key strategies for managing labor planning through changing freight demand is measuring labor performance by tracking the activities being performed by staff on the warehouse floor. By analyzing historical activity data and trends, companies can gain insights into the expected patterns of demand and adjust their labor planning strategies accordingly.

For example, companies can utilize analytical data by setting up activities with a goal time and travel time, as well as monitoring the data flows from the warehouse management system (WMS). This can provide companies with the insights needed to calculate the overall labor performance percentage and allow them to identify trends in specific lanes or routes and modify their operations to optimize efficiency.

Make Data Actionable

Another important strategy for managing labor planning through changing freight demand is simply making the labor data completely actionable from the enterprise level down to the individual.  This ultimately gives flexibility within the company to accurately review labor performance, which ensures that they have the necessary flexibility to adjust to changing demand.

Whether it’s looking at labor performance by warehouse, by activity, or by shift, companies can see this data daily and make changes if needed to help manage the workload. Only looking at per/hour metrics tells just one side of the story, whereas measuring performance through these key areas can also ensure companies have the visibility to manage different types of freight, which can be particularly helpful during peak periods.

Track Indirect Time

Logging unmeasured time to find operational waste is also a significant strategy companies need to look more closely at when managing labor through changing freight demand. Indirect activities, including cleaning, admin time, battery changing, labeling, and breaking down pallets all decrease time that can be spent on more important warehouse floor tasks and the time the operation is spending on these unmeasured tasks can often create a “black hole” in the company’s financials. 

By logging these indirect activities and analyzing the data of the time being spent on these activities, companies will be able to find wasted or improved opportunities more readily for the workforce, which will ultimately lead to time being spent more efficiently and more money being saved annually. 

Manage Your Budget

Just as tracking indirect labor time is important to lowering costs through changing freight demand, tracking the number of hours users are spending in the warehouse in general is also important to manage overall budget. When utilizing a WMS to manage company budget, real-time hours data can be allocated between time and attendance systems to find the number of downtime or overtime hours in a given day, week, month, etc. 

Even more so, changing freight demand can also hinder how long it takes a user to clock in until they start their first task as well as the amount of time overtime hours are being worked. Companies need to be looking at the expected hours the user works versus the actual, used hours as well in order to avoid overtime errors. Managing the budget is critical, as companies can quickly and efficiently adjust their operations to respond to unexpected changes in demand or unexpected disruptions if needed.

Provide Standardized Views

From the enterprise/region to the warehouse and the shift down to the individual, all aspects of warehouse operations need to have standardized views from the different levels of the company. For example, the enterprise/regional company executives need a more overarching view of the warehouse sites to fully evaluate the labor performance, including how hours are being spent. Warehouse officials would then take a holistic view of the entire, specific warehouse operation to understand which shifts are underperforming and how the budget is being tracked. 

Looking at the shift perspective, the focus has to be on monitoring individual performance, indirect time being used, and other areas where the individual can improve. The individual then has to assess their own performance to provide real-time analysis and feedback to the shift, warehouse and enterprise/regional personnel. 

Incorporate Expected Travel Time

Last, but certainly not least, incorporating expected travel time for each activity in the WMS will provide a more accurate reflection on how long each shipment takes to allow for better performance metrics, streamline operations and better manage labor resources.

For example, companies can implement configuration functionality to easily map and configure travel time​ to reduce the travel time. By reducing travel time, companies can free up labor resources to decrease downtime that would otherwise be used to manage inventory or just wait for inventory to arrive or depart the warehouse. 

Managing labor planning through changing freight demand is a challenging task, but with the right strategies in place, companies can effectively navigate these challenges. By tracking activities on the warehouse floor, making data actionable, tracking indirect time, managing the budget, providing standardized views and incorporating expected travel time, companies can optimize their operations and ensure that they have the necessary labor resources to meet changing demand. With these strategies in place, companies can be well-positioned to succeed in today’s dynamic supply chain and logistics industry. 

About The Author:

Mike Babiak is the Director of Operational Excellence for Longbow Advantage, the industry-leading supply chain execution company behind The Rebus® Platform and the global leader in warehouse software and consulting. For more information, visit www.longbowadvantage.com. 

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily, News, Warehousing

CILTSA Leads the Discussions on Warehouse Automation at its Free-to-Attend Conference

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The Chartered Institute of Logistics and Transport: South Africa (CILTSA) is gearing up to host an informative and insightful warehousing conference. Themed ‘Warehouse Automation: The benefits and risks’, this hybrid event takes place on 23 May at The Garden Venue in North Riding, Johannesburg and online.

The program includes talks on:

  • ‘Warehouse automation: the benefits and risks’ by Martin Bailey FCILT, Chairman of Industrial Logistic Systems
  • ‘How to optimize digital transformation in your warehouse’ by Munya Huvsu, CEO – ISB Optimus
  • ‘The current challenges preventing warehousing automation and how to overcome them’ by Gerhard van Zyl – Group Operations Director: AsimoTech
  • Safety and compliance in the modern warehouse, transport and logistics environment by Annah Ngxeketo – Founder and CEO: Mamoja Projects

Warehouse automation aims to automate repetitive and tedious manual tasks in warehousing operations, making manual work less labor-intensive, whilst reducing labor costs. It also increases productivity, accuracy and safety levels.

While the possibilities of warehouse automation are varied and exciting, investing means making difficult choices and taking high risks. “Implementing automation technologies in a logistics network is costly and time-consuming, with hundreds of possibilities, from the most basic to the most innovative. It is a long-term investment: experts are quick to cite the benefits of warehouse automation, but it is also vital to understand and assess the risks”.

CILTSA’s conference is being hosted in collaboration with the Transport Forum. The event sponsors are Acrow, Fumani Holdings, ISB Optimus, Mamoja Trading and Projects, Toyota Material Handling and Tendai Mhlanga Photography. Event supporters include CILTSA interest group Women in Logistics and Transport: South Africa (WiLATSA), the African Women in Supply Chain Association and Sincpoint.

To sign up for this free-to-attend event in person, register at https://www.transportsig.com/component/dtregister/23-may-2023-737/register?Itemid=99999  If you wish to attend online, click on https://us02web.zoom.us/meeting/register/tZMlc–gqz4sEtdBC20H9ItPB_NGnjhIo92o

About CILTSA

The Chartered Institute of Logistics and Transport supports the professionals who plan the systems, bring in the raw materials, manage the movement of people and goods, who ensure safety standards, maintain mobility, and keep the economy working.

We are the leading professional body for everyone who works in supply chain, logistics and transport. We are a global family, representing professionals at all levels across all sectors, with a mission to give individuals and organizations access to the tools, the knowledge and connections vital to success in the logistics and transport industry.

Founded in 1919 with a mission to improve industry practices and nurture talent, our Institute supports over 35,000 members in 35 countries. Through our educational suite, our strong community and our commitment to high standards, we help professionals at all levels to develop their careers and access better jobs.

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Archives, Global Logistics, Global Trade Daily, News

Synergy NA expands WMS Solution into UAE

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WMS Technology Innovator, Synergy Logistics, is Expanding its Global Operations having Secured its First Customer in the United Arab Emirates (UAE).

Dubai based specialists, Automyze Fulfillment Center, established in 2017, has onboarded technologically advanced, cloud-based SnapFulfil into its newly expanded 25,000 sq. ft warehouse. The initial SaaS contract includes 45 licensed users.

Automyze specializes in start-ups and SME brands positioned for significant growth and currently ships an average 18,000 units a month. However, with their ambitious target to double this over the next six months, they required a WMS with the flexibility and scalability to adapt and grow with them and its customers’ strategic expansions.

The proven flexibility of SnapFulfil’s solution means Automyze will now have accurate and consistent control of inventory and outbound processes, as well as returns, which will help them deliver a first-class service experience for their clients and their customers. The live data functionality will also help maximize performance and cost savings, plus have a tangible impact on strategic growth.

A key attraction of SnapFulfil for Automyze was its Application Programme Interface (API) friendly and robust pathway that meets the challenges of B2C and D2C omni-channel fulfilment. However, identifying the solution is just half of the challenge. Delivering it while continuing to satisfy existing customer requirements – without incurring custom coding costs and delays for new clients – is a different matter.

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Archives, Global Logistics, Global Trade Daily, Technology, Warehousing

Carbon Neutral Warehouse will Power European Growth

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A British logistics specialist has invested £10 million in developing the greenest storage and distribution hub in central England to support the growth of European manufacturers and retailers.

The purpose-built carbon neutral warehouse from Midlands-based PGS Global Logistics Ltd is attracting strong interest from Europe due to its sustainable storage and distribution facilities.

The new warehouse has an A-rated energy performance certificate (EPC) and benefits from 500 energy generating solar panels, backed up by an industrial battery storage system.

The high specification warehouse will double PGS Global Logistics’ pallet storage capabilities from 15,000 to 30,000 and benefit from Very Narrow Aisle (VNA) pallet racking to maximize capacity.

Electric forklift trucks and a fully integrated market-leading warehouse management system have enabled the company to develop a facility for storage, picking and packing that is ideally suited to ecommerce and more traditional routes to market. 

The warehouse will also act as a hub for same day and next day parcel distribution, pallet and full truck load deliveries to all areas of the UK, including the distribution centers of all major retailers.   

By investing in renewable energy sources, PGS Global Logistics aims to generate enough electricity to be self-sufficient for approximately eight months of the year.

The bonded warehouse has been developed to serve European customers who want a centrally-located distribution center in the UK that can offset some of the carbon emissions from the supply chain and provide an end-to-end international solution via road, ocean and air.

About PGS Global Logistics 

It’s been 25 years since MD Paul Eyles collected his first consignment from Carrs Tool Steels in Smethwick to deliver to London.

Since then, the business has grown and expanded with the same personal service, values and attention to detail as that first delivery. With over 100 vehicles and 200 members of the team, PGS Global Logistics is a logistics giant, but still remember why Carrs trusted us then and still trust us now to get their goods delivered intact and on time.

The close attention to detail and the sense of personal service that is only normally associated with a small family run business is the basis on which PGS Global Logistics and all its employees operate.

PGS Global Logistics takes time to listen to customers’ requirements, allowing us to offer a unique service, unbeatable by anyone else in the industry.

At PGS Global Logistics we take great pride in what we do and refuse to accept second best!

 

warehouse management You Need to Communicate Your E-Commerce Forecasting to Your Fulfillment Center
Archives, Global Logistics, Global Trade Daily, Warehousing

You Need to Communicate Your E-Commerce Forecasting to Your Fulfillment Center

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Fulfillment centers need insights just as much as executives and investors. In the e-commerce space, there can be global operations for warehouses in a single location or hundreds. Regardless of the size of the enterprise, e-commerce forecasting can provide projections to organize inventory and improve a business’s reputation and revenue. 

Forecasting order quantity means efficient stocking and expedited deliverables. Curating long-term business relationships with departments packing and shipping your products — internal or external — is advantageous for continued growth and support. The best way to do this is by communicating the forecasts with the fulfillment centers to drive results.

The Significance of Understanding the Supply Chain

Every point during the supply chain is a variable. Each facet creates accurate forecasts, from third-party logistics to an internal fulfillment center that packs and ships goods. 

A business cannot just rely on last year’s sales numbers to create a comprehensive forecast. Expenses, outliers and unexpected scenarios must be considered for it to be sturdy. It’s crucial to communicate e-commerce forecasting to your fulfillment center because it can help you understand the variables in its step of the process:

  • Sourcing multiple materials puts deliverability at risk.
  • International merchants need to allot charges to process payments.
  • Overseas shipping creates delays in deliverables.
  • Businesses operating in your country may have higher production costs.

Fulfillment centers must know that most revenue comes from existing customer bases — this is the foundation for projecting accurate e-commerce forecasting. This grows as a company acquires new customers, creating exponential growth in the baseline for projections. Communicating this growth as it happens to fulfillment centers will help their momentum as your e-commerce business ages.

Forecasts will also help fulfillment centers become aware of your marketing strategies. This creates a more intimate relationship between fulfillment, analytics and marketing teams for the most effective satisfaction. This ties into their work, as owned audiences are people you could convert using free methods like email and social media marketing. 

Companies can make predictions about the success of these campaigns. It’s essential to consider paid acquisition methods such as unsolicited offers and conversion rates based on how much your teams are investing in marketing for your e-commerce.

The Challenges in E-Commerce Forecasting for Fulfillment

Considering all these participants equally will create more accurate data for your fulfillment centers, but it isn’t just about that initial forecast delivery. Communication includes when adjustments are made and new data is measured. The consumer market is not impossible to predict, but the one constant forecasters can rely upon is oscillations.

Sharing this information can help fulfillment centers prepare for dips and spikes in sales and inventory, but it is sometimes hard to adapt. However, it may become more commonplace if every company becomes aware of how e-commerce forecasting could help change fulfillment center productivity. Fulfillment centers could adjust by changing hiring methods or executing updated storage solutions based on these forecasts.

Demand forecasting will be the focal point of these adaptations, as the different variations detail diverse business outcomes:

  • Passive demand: Using past sales to predict future demand
  • Active demand: Using the competitive environment and production rapidity to predict demand and create growth plans
  • Long term: Focusing on a long time frame, usually more than a year, to help provide an exhaustive picture of seasonality patterns and output
  • Short term: Focusing on a single day or small time window, such as a holiday
  • Macro and micro: Analyzes outside forces that could potentially interrupt commerce, taking a micro or macro lens depending on the company’s objectives
  • Internal business: Analyzes internal assets to see if they can keep pace with demand, including staffing needs

Companies could tell their third-party or internal fulfillment centers there will be a severe increase in inventory. This could allow them to face that challenge by implementing new systems like automated warehouse picking or more useful order management software to streamline stock control.

Another challenge comes with the attainment of the forecast. Developing it can take time, as market research happens and experts create projections based on that insight. In the meantime, fulfillment centers that could become reliant on these projections to forecast order quantities may be waiting in limbo while it’s perfected. 

Imperfect, rushed or incomplete forecasts could mitigate the boom forecasts typically provide for fulfillment centers and decrease inventory expenses. So many available fulfillment centers have to juggle this, mainly if they house multiple e-commerce entities.

How Will the Forecast Order Quantity Help Your Fulfillment Center?

E-commerce forecasting can help fulfillment centers prepare for the busiest seasons — for some, that’s related to holidays and for others, it’s connected to trends. They must be all-encompassing, usually outlining more than the average number of units or a simple percentage increase over the previous year. What happens if a celebrity influencer stops endorsing your product and that affects sales — how will your forecast reflect this hurdle so fulfillment centers know how to acclimate?

A forecast also details promotions, sales and event fluctuations that could affect forecast order quantity. Depending on the scope, all estimates should gradually be developed immediately after the previous sales period. They should consider everything from competition to season, considering the type of products and the market available for them in the present.

Fulfillment centers will appreciate forecasts that clearly outline their company goals and standards, so they know inventory specs and what they can do to maintain a trusting relationship. Though it may be a third party or not, they have just as much, if not more, of an effect on customers than the business itself.  

Your fulfillment center will appreciate you communicating inventory needs and expectations. It will help them organize and remain compliant with contractual agreements, especially as they navigate an unprecedented demand increase for e-commerce fulfillment responsibilities. Better communication equals greater organization, leading to snappier shipping and better customer satisfaction.

It will also create accountability across sectors. Inconsistent data is a considerable issue in supply chains as products exchange countless hands. Communicating with fulfillment centers about expectations lets them report back with accurate information because it was from you, not a third party. It’s another set of checks and balances to ensure every item reaches its destination.

E-Commerce Forecasting for Fulfillment Centers

Creating a business that will survive in a sea of many means you must communicate your e-commerce forecasting to fulfillment centers. Improve customer loyalty by creating a solid forecast foundation. You can decrease financial risk because everyone is on the same page regarding sales expectations.

This will create strong business relationships, which is better for any bottom line and the customer who receives the package.