Four Common Warehouse Setup Mistakes to Avoid to Ensure Space Efficiency

Warehouse operations and logistics must be efficient to reduce costs and improve overall customer experience. However, some warehouse still suffers from flaws despite the innovations and efficiencies introduced. This is because of the common mistakes made in warehouse setup.  That is why you should be aware of these mistakes and make appropriate adjustments right away. Below are some of the common mistakes you should look out for:

Overlapping Shipping and Receiving Areas

Generally, it is ideal to match locations to functions so your warehouse can operate more efficiently. Otherwise, your warehouse won’t have proper work flows. Having the same area for both shipping and receiving will result in efficiencies and mistakes. For instance, it is easy for outgoing orders to be confused with incoming orders and get them re-shelved. If you think you need more space for your inventory, check out for your options.

Very Small Receiving Area

Even if you have a separate shipping and receiving area, the latter area can usually face a space crunch that will result in inaccuracies.  Ensure your receiving are has adequate space. Aside from being able to hold inventory, it should perform quality control and labeling, break down bigger pallets, stage items that should be returned or inspected further, and other activities.

Unoptimized Picking Paths

Efficient picking is only possible with efficient picking paths. This means there is more time preparing orders and less time moving about the warehouse. However, if these paths are not optimized, it can result in excessive travel times that lead to slower turnaround times and unnecessary labor costs. An optimized picking path layout includes storing items that are usually bought near each other, ensuring linear picking, and fulfilling orders in a way that individual items in an area are picked before moving to the next area.

No Plan for Future Growth

Most business owners will want to optimize their warehouse space especially if they are leasing space by the square foot. Nobody will want to pay for unused space unless they are sure to carry more stock in the future. But, it is necessary to plan for future contraction and expansion. An excellent plan must anticipate market demand shifts, process changes, and inventory at least 5-10 years out. This outlines contingencies for dealing with such changes that can include when and who to add pallet racks, when to ship a distant long-term storage location, and how to handle overstock space.

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