Tag: warehouse management system

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Warehouse Management

How’s Picklist Optimization the Best Investment for Warehouse Management?

In the fast-paced world of warehouse management, where every second counts and customer expectations continue to soar, finding ways to optimize operations is crucial for success. Among the myriad of strategies available, picklist optimization stands out as a game-changing investment. Imagine a warehouse where order pickers effortlessly navigate through the aisles, maximizing their productivity while minimizing unnecessary steps. Picture a scenario where accuracy is paramount, and customer satisfaction soars as orders are fulfilled with precision and speed. 

This is the power of picklist optimization—a strategic approach that revolutionizes warehouse management. 

Understanding Picklist Optimization
Picklist optimization is the process of organizing and sequencing picklists to minimize travel time and maximize efficiency during order picking. It involves intelligent algorithms and data analysis to determine the most efficient route for picking items, taking into account factors such as product location, order priority, and picker availability. By optimizing the sequence of picks, warehouses can significantly reduce the time and effort required to fulfill orders.

In this blog post, we will delve into the reasons why picklist optimization is the ultimate investment for warehouse management, unlocking a world of enhanced efficiency, reduced costs, and delighted customers. Get ready to discover the secret to transforming your warehouse into a well-oiled order fulfillment machine!

Enhanced Operational Efficiency

One of the primary benefits of picklist optimization is improved operational efficiency. Traditional warehouse picking methods often result in unnecessary travel time and inefficient paths, leading to wasted resources and increased labor costs. By optimizing picklists, warehouses can reduce travel distances, minimize congestion, and improve overall picking speed. This efficiency translates into higher productivity, increased throughput, and shorter order fulfillment cycles.

Minimized Picker Fatigue

Order picking can be physically demanding work, and picker fatigue is a common issue in warehouses. Fatigue can lead to reduced accuracy, slower performance, and increased risk of errors. With picklist optimization, warehouses can reduce picker fatigue by minimizing excessive walking and creating more logical picking routes. By optimizing the sequence of picks, pickers can complete their tasks more comfortably and efficiently, leading to improved accuracy and reduced employee turnover.

Increased Order Accuracy

Order accuracy is crucial for customer satisfaction and retention. Inaccurate orders result in unhappy customers, returns, and potential damage to the company’s reputation. Picklist optimization helps mitigate this risk by ensuring that pickers follow logical and efficient routes, minimizing the likelihood of errors. By reducing the number of picking mistakes, warehouses can enhance order accuracy and improve customer satisfaction, ultimately leading to higher customer loyalty and increased sales.

Cost Reduction

Warehouse management involves various costs, including labor, inventory holding, and transportation. Picklist optimization directly contributes to cost reduction by optimizing the use of resources. By minimizing travel time and streamlining the picking process, warehouses can save on labor costs, reduce overtime expenses, and maximize picker productivity. Moreover, improved order accuracy reduces the costs associated with returns, replacements, and customer service inquiries. Overall, picklist optimization is a cost-effective investment that delivers significant long-term savings.

Scalability and Adaptability

As businesses grow, their warehousing needs evolve, and scalability becomes essential. Picklist optimization systems are highly scalable and adaptable to changing warehouse dynamics. They can handle varying order volumes, different product assortments, and evolving order priorities. By investing in picklist optimization, warehouses can future-proof their operations and ensure continued efficiency, even during periods of rapid growth or change.

Precision in Every Pick: How Increff WMS helps

Increff WMS offers a comprehensive set of features and functionalities that enable efficient picking optimization. From intelligent order consolidation to zone-based picking and advanced technologies integration, Increff WMS empowers warehouses to streamline their picking processes, enhance productivity, and achieve higher levels of operational efficiency. Here’s how Increff WMS helps in picking optimization:

  • Intelligent Order Consolidation: Increff WMS intelligently consolidates multiple orders based on factors such as product compatibility, proximity, order SLA time,  and priority. By grouping orders with similar items or picking locations, it minimizes the travel time and distance required to fulfill multiple orders simultaneously.
  • Dynamic Picklist Generation: The system generates picklists dynamically, taking into account real-time inventory updates, order priorities, and picker availability. It ensures that picklists are optimized based on the most efficient routes and sequencing, reducing picker idle time and increasing overall productivity.
  • Zone-based Picking: Increff WMS supports zone-based picking strategies, dividing the warehouse into different zones based on product categories or locations. Pickers are assigned specific zones, optimizing their movements within their designated areas and minimizing unnecessary travel across the entire warehouse.
  • Wave Picking: Wave wise picking is a warehouse management technique where items are picked in groups or “waves” based on a configured wave size and frequency. This method helps in improving picking efficiency by allowing pickers to focus on a specific set of items in a particular wave sequence. As soon as all items of the least wave sequence are picked, the picker will be assigned the next aisle to pick. 
  • Pick-to-Light Picking: This provide pickers with real-time instructions and guidance, reducing errors and improving picking accuracy while further optimizing the process.
  • Real-time Inventory Visibility: Increff WMS provides real-time visibility into inventory levels and locations. Pickers can easily locate products and select the most efficient picking path based on the availability and proximity of items. This eliminates wasted time searching for products, streamlining the picking process.
  • Performance Tracking and Analytics: The WMS software captures data related to picking performance, such as pick rates, order fulfillment time, and picker productivity. Increff WMS generates comprehensive reports and analytics, enabling warehouse managers to identify bottlenecks, optimize workflows, and make data-driven decisions for continuous improvement.
  • Scalability and Flexibility: Increff WMS is scalable and adaptable to the evolving needs of growing businesses. It can handle varying order volumes, multiple warehouses, and changing fulfillment priorities, ensuring that picking optimization remains effective even as the business expands. The user is allowed to set the Release Preference as per channel or as per SLA etc

So, whether you’re a small e-commerce startup or a large-scale distribution center, investing in picklist optimization is not just a wise decision—it’s a game-changer. Embrace the power of picking optimization, harness the capabilities of Increff WMS, and witness the transformation of your warehouse into a well-oiled machine. It’s time to break free from the constraints of the past and step into a future where efficiency, accuracy, and customer delight go hand in hand — unlock the true potential of your warehouse management.

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Warehouse Management

The FEFO Method for Expiry Date Inventory Management Guidelines

Industries that deal in perishable or low shelf-life products such as baby care, cosmetics, personal care, etc. can incur significant losses due to obsolescence or expiry of stock. It is, therefore, crucial for them to assign expiry dates for each batch, and push the near-expiry stock to the stores first. Automated WMS solutions now enable brands to pick as per expiry dates, and set accurate timelines and notifications, alerting them when a particular batch is about to get expired.

What is FEFO?

First Expiry First Out (FEFO) is a variant of the well-known First-In-First-Out (FIFO) method of stock rotation, but with a focus on a product’s expiry date, as opposed to its manufacturing date or date on which it was shelved in the warehouse. Under this technique, the product or batch with the earliest expiration date is pushed to the stores first, to avoid its obsolescence.

FEFO inventory management ensures that each product that is being sold is well within the expiry date, is fresh, and fit for consumption. FEFO also avoids the labour costs and efforts associated with inspection and checking of expiry dates, which could be quite tedious and time-consuming. With WMS tools like Increff WMS, brands can have complete visibility of their stock, and get help in expiry date management without being overwhelmed by any manual effort.

How can barcoding (inventory serialization) improve the supply chain?

Barcoding or inventory serialization makes it highly convenient to manage inventory, and track products in the warehouse and throughout the supply chain. By storing the complete information of a product, a barcode avoids errors and inaccuracies, which could bleed across functions and snowball along the supply chain.

With barcoding, brands can benefit from automatic product identification, recognition, and data implementation. This means hours’ worth of effort is accomplished in a few minutes, significantly boosting the overall productivity and reducing labour costs.

One of the major benefits of barcoding is quality control and avoiding the obsolescence of products. A barcode stores batch numbers and product expiry information, which can be accessed by WMS tools to pick and ship the near-expiry batches first.

FEFO helps reduce inventory wastage

FEFO inventory rotation can improve your profitability and reduce wastage of inventory. By automating the entire process of exposing and shipping out the near-expiry batches first, retailers no longer have to be constantly worried about wastage due to inventory expiry. In the case of industries like food processing or fast-food chains, this method allows using up all the ingredients while they’re still fresh to consume, avoiding wastage and spoilage.

Benefits of FEFO warehouse and inventory software

Businesses get a number of benefits with a simple switch to a FEFO warehouse and inventory software. These have a significant impact on not just the backed processes but also their product marketability and brand reputation.

1) Increased buyer confidence

Most customers check the product expiry dates while making a purchase at a store. Some customers who perceive a product to be too close to the expiration date can drop the idea of purchasing altogether. Product freshness is an important determinant of consumer interest across industries, especially in the case of products with low shelf life.

With FEFO, you can get items off the shelves with the longest possible lead time on the expiration date. Distributors and stores receive the products well in advance of expiration. This gives the end customers a sense of confidence and establishes their faith in the brand, for always offering fresh products.

2) Reduce the number of expired goods

Every retailer wants to ensure they eliminate or minimize the number of unsellable and expired goods on their shelves. With FEFO, they can ensure that their inventory management software picks and ships goods according to the approaching expiry dates. This reduces the risk of having unsellable goods on the shelves and also the piling inventory storage costs. FEFO enables retailers to avoid deadstock, and therefore also the cost of stock expiring on their shelves. 

3) Manage physical layout of warehouses

With inventory management focussed on the expiry dates of a package, the warehouse follows a layout that enables faster and more convenient picking of items that are approaching their expiry date, thus streamlining the warehouse inventory management.

4) Streamline the flow of items

It is very important for the warehouse staff to know the expiry dates of products and have an estimate of how long all the processes take on the floor. This ensures the items flow in a smooth way and the best results are guaranteed.

FEFO warehouse and inventory software automate your picking, packing, and shipping by keeping the expiry date at the very center of inventory management. This offers significant benefits in terms of streamlining your backend processes, enhancing your brand value, and boosting customer satisfaction.

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Technology

How Distributed Warehousing Benefits e-Commerce

According to a survey, around 33% of customers have higher expectations for fast shipping, 40% for free shipping, and 42% expect a 2-day shipping option for every purchase. As customer expectations rise, e-commerce players face increasing pressure to provide more competent and efficient deliveries. This requires a new outlook toward backed processes and warehousing strategies. More and more companies are switching to the distributed warehousing model, as they provide the required flexibility and faster ecommerce fulfillment that today’s marketplace demands. In this blog, we talk about what distributed warehousing is and why ecommerce players are adopting it as a strategy.

Centralized vs Decentralized Warehousing

Both centralized and decentralized warehousing can be used as a distribution strategy depending upon business requirements, growth, and type of industry. Centralized warehousing means better inventory control, low operation costs, low inbound costs, high-quality standards, and customer service. On the other hand, it leads to high shipping costs for outbound shipments, increased shipping timelines, and a lack of business continuity. All these disadvantages can be covered by decentralizing your warehousing or opting for warehousing distribution.

Distributed warehousing is a business approach where a business fulfills, ships, or distributes goods from multiple smaller and strategically located warehouses. This enables businesses to locate the products as close to their end customers as possible, thus reducing the time and cost of delivery. Distributed warehousing allows brands to perform a number of functions, that is, storage, distribution, fulfillment, and cross-docking in a more flexible and efficient way.

When to go for distributed warehousing

As brands gain a larger market share geographically, the outbound costs of fulfillment from a centralized warehouse tend to rise as well. This is primarily due to the growing distance between the warehouse and the end customers. At one point, having a new warehouse close to the customer becomes more affordable as compared to fulfilling from a faraway centralized warehouse. Following the conventional cost-benefit wisdom, this is when businesses tend to make the switch to a distributed warehouse model.

How Distributed Warehousing Benefits Brands

As businesses expand geographically, managing the different aspects of a supply chain can become increasingly challenging. Packages may have to go through various locations or be routed through complex pathways before they reach the end customer. These complexities can be handled better by a distributed warehousing strategy. 

Short supply chain

By shortening the supply chains and fulfilling locally, e-commerce companies can reduce their transportation costs, ensure quality in case of perishables, provide faster order fulfillment, and reduce transportation risks. It also allows businesses to rise up to the new challenges of same-day delivery. Besides, shorter supply chains are a step in the direction of sustainable business, as these involve lesser CO2 emissions, reduced transportation costs, and the least possible environmental impact.

Lesser shipping and fulfillment costs

Speed of delivery is crucial but the cost of delivery is even more so, from the commercial point of view. This is all the more important as customers increasingly expect free delivery from their trusted brands. In most cases, the cost of shipping is a function of the shipping distance. Therefore, by locating the warehouses closer to the customer clusters, businesses can cut their average shipping costs.

Robust Business Continuity Plan (BCP)

A number of unforeseen incidents or catastrophes such as fire, floods, pandemic, and conflict, can disrupt businesses and their supply chains. Having alternative storage and routing facilities in place, courtesy of distributed warehousing can support business operations even during emergencies. Glitch-free operations and on-time promised fulfillment can go a long way in maintaining customer satisfaction and upholding brand reputation. 

Benefits of Outsourcing Warehousing Distribution

Distributed warehousing is well in line with outsourced warehousing as they allow the replacement of CAPEX with OPEX for an expanding business. 3PL providers in fact play a significant role in ensuring seamless operations while enabling brands to control their logistics costs. Their warehousing and distribution services are aimed at maximizing efficiency in terms of storage and distribution of goods. With outsourced warehousing, businesses can also enjoy greater scalability in times of peak demand or rapid business growth.

Outsourced warehousing and fulfillment takes the burden off the shoulders of the management, and allows them to focus on their growth strategy. As a substantial portion of supply chain management goes into the hands of the 3PL partner, they can bring in better integration, problem-solving, innovation, and integration.

How does WMS fit into the puzzle?

Managing multiple warehouses, keeping track of the collective inventory across warehouses, picking and shipping the right items, and tracing packages as they are routed through the increasingly complex supply chain requires an automated solution. A Warehouse Management System (WMS) takes care of all these processes which could appear rather overwhelming as distributed warehousing takes full effect. A WMS helps avoid errors, ensures high-level performance accuracy, and keeps your supply chain well-oiled.

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Technology Warehouse Management

How to Choose a Warehouse Management System

A warehouse management software is vital to the successful management of the warehouse. Research shows that it can improve warehouse efficiency by 27% by facilitating timely order fulfillment, packing, and picking. Owing to that it is essential to know how to choose a warehouse management system from the different types of WMS available.

When used correctly, WMS can propel your warehouse to unprecedented levels of success. Some benefits of using a WMS system include:

  • Efficient labor management
  • Accurate inventory and management
  • Reduced paperwork
    So, what factors must you consider when choosing a warehouse management system? Here is your complete guide on how to choose a warehouse management system.

Analyze Your Need for a WMS

One cannot emphasize just how big a commitment getting a WMS is. Not only do you have to spend money on the technology, but you also need to train your employees to use it and acquire the hardware and infrastructure you need to make it functional.

Therefore, it is critical that you thoroughly analyze your need for the system. Otherwise, a lot of time, effort, and resources will go down the drain unnecessarily.

Size is one of the biggest influencers in installing a WMS. If you have a big warehouse with multiple floors and endless storage units, it goes without saying that managing it can be quite a challenge. In such a scenario, a WMS will prove invaluable. But this is not to say that smaller warehouses cannot benefit from WMS. If your warehouse’s storage and removal processes are complex, you also stand to gain a lot from WMS.
For instance, if you store products for an e-commerce store, you may find that packaging requires more attention to detail. This is because you have to pack each customer’s order individually, ensuring that you do not mix up their purchases.
By contrast, if you deal with a business that generally requires items in bulk, packaging and shipping are relatively straightforward. Therefore, with the e-commerce store, investing in a WMS makes good economic sense.
Additionally, if products require specific conditions for shipping, this can add a layer of complexity to the packing process. For instance, if some goods require refrigeration during shipping, while others need to be frozen, you need to take extra care to ensure that they reach the destination in good condition. For this, a WMS can come in real handy.

Budget For Warehouse Management System

Another critical consideration when choosing a WMS is your budget. You don’t want to invest in an expensive system only for you to discover one year later that it does little to boost your business efficiency.
Warehouse management systems typically come in three tiers. The cheapest tier, usually known as a Tier 3 WMS, performs the most basic warehouse management functions. These include confirming and tracking inventory and stock.
A Tier 2 WMS performs more complex functions, including:

  • Managing customer portals
  • Reporting
  • Providing restocking, receiving, and storage guidelines

The most expensive systems (Tier 1 WMS) can perform more complicated tasks like assigning work to employees, guiding them to the correct location of the goods they want, forecasting, and improving response times.

Another way to gauge the cost of a WMS is by listing down the price of each item. For instance, you need to consider the licensing, training, development and upgrading, and support costs. For this, you should have a candid conversation with your provider to get an accurate figure on the cost of the system.

While discussing the costs with your provider, beware of hidden charges. These may include seemingly small expenses like travel costs that accumulate to outrageous sums over time. Additionally, comparing WMS costs can help you negotiate the pricing better.

When creating a budget for your WMS, the final tip is to consider the 5-year cost of using the system, inclusive of the hardware and infrastructure costs. If the figure makes business sense and you will get worthwhile returns, acquire the system by all means.

Ensure Seamless Integration with Existing Systems

Supply chains stretch beyond the confines of a business and encompass 3rd party services. While an ERP might be able to unify the internal business, the logistics aspects of a business need to be handled efficiently with a specialized WMS. The relationship that your business has with your ERP vendor will impact the success of a WMS. You need to communicate and have a good working relationship from the start. The integration needs to allow for seamless data communication between both systems.

This is critical when the information is used for internal work and communicated with internal or external partners. Both systems can speak the same language, so new data does not have to be re-entered daily. This causes errors and isn’t good for business.

Request for Information on How to Choose a Warehouse Management System

You have already settled on whether you need a WMS system and how much you can spend on it by this point in your decision-making journey. Now it is time to contact vendors for offers.
The best way to do this is to create a Request for Information or RFI form. This form is a questionnaire to help you obtain the requisite information.
Start by describing your business, what it does, your vision for it, and how the WMS fits into your business. You should also discuss your warehouse at length, providing pertinent details such as:

  • The number of loading bays
  • Picking and packing locations
  • The average number of transactions in a day
  • The primary users of the system, like pickers, packers, forklift users, or management
     

Then, create a list of questions you wish your provider to answer. For instance, you may request information about:

  • Their area of specialization and expertise
  • Owner of the system’s source code
  • WMS features
  • Average size of their clients
  • Number of clients and sites using their product
  • Ease with which you can connect multiple warehouses
  • Ease of integrating the WMS to your ERP,
  • Availability of pre-built marketplace integrations
  • Level of support you can expect from them
  • Estimated cost of using their product
     

When creating your RFI, it is best to refrain from describing how you intend the product to work. This is because you may cloud the ingenuity of your provider, thus blocking out more efficient and possibly cheaper options that would be the best fit for your business.

The Provider’s Commitment

The final consideration for choosing a WMS is the provider’s commitment to your company. The relationship you develop with your provider can be critical to the success or failure of your business.
You can gauge a provider’s commitment to your business on their enthusiasm and response to your concerns regarding the systems. A committed warehouse management system provider will always look for the most efficient solution to your issues and point out a cause of action that best serves your needs.

The Final Word on How to Choose a Warehouse Management System

No doubt choosing the perfect warehouse management system from the different types of WMS available can be complicated. However, there are numerous factors to consider settling for a well-serving warehouse management system as mentioned above.
If you are looking for a reliable WMS provider, look no further from our company. We will guide you extensively on how to choose a warehouse management system that best fits your needs. So, contact us today to start the conversation on the best options of WMS for your business.