Companies usually invest considerable sums in setting up massive warehouses. As a result, warehouse spaces are costly, and companies can incur huge costs regarding carrying, handling, and storing within a warehouse. Companies are constantly figuring out ways to optimize warehousing operations to increase cost savings. With the advent of technology, automation, and data analytics, companies have a variety of options to streamline the material handling process to utilize the warehouse space effectively. So how can companies effectively increase cost-savings by effective material handling to optimize warehousing space?
Accurate Forecasts and Inventory Management
Accurate forecasting is critical to a successful inventory management. Even a small percentage difference in forecasting can result in excess inventory, which takes up additional warehouse space and freezes up the inventory capital. Its high time for companies to abolish the traditional spreadsheet-based forecasts and opt for sophisticated solutions, which account for multiple factors for forecasting. The current ERP solutions take in historical data, seasonal trends, promotional activities that are processed by algorithms to generate a more accurate forecast. A precise forecast figure assists the company to hold just the right amount of stock increasing customer service levels and minimizing stockouts.
Maximize Space Efficiency and Layout Design
The most obvious way to increase warehouse storage space would be to expand horizontally by adding more square footage. In recent times, as land becomes a scarce resource, storage facilities are looking to increase the holding capacity per square footage by expanding vertically. Designing an efficient warehouse layout with right industrial storage systems can ensure maximum carrying capacity and thereby improve operational efficiency. Additionally, by analyzing the materials that need to be stored and the material flow, efficient layouts can be created to minimize travel time, ease inventory tracking, and minimize the chance of losing the small items.
AS/RS Warehouse Storage Solutions
An automated storage and retrieval system (AS/RS) can maximize warehouse space by storing large volumes of material in a small footprint and help eliminate errors. These solutions can drastically reduce the travel time in the warehouse, which results in optimized operational performance. A modern-day warehouse execution system (WES) can encompass warehouse management functionality, material handling equipment (MHE) control, warehouse control system functionality, business intelligence and integration with host ERP systems.
Advanced Warehouse Material Handling Equipment
Companies looking to improve their warehouse productivity should look to adopt advanced warehouse material handling equipment as it results in better productivity and improve safety. When purchasing such equipment companies should analyze the suitable loads that will be carried with considerations for margin of safety. Other factors to consider in the purchase process includes the width of aisles, turn spaces, vehicle features, and turning radius.
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