Shipping - Article | 3-min. read
Improving Efficiency Through Warehouse Audits
An efficient supply chain is key to maximizing business success, whether a small or large company. When businesses manage their supply chain effectively, they are increasingly likely to boost customer satisfaction, reduce operating costs, and increase sales and profitability.1
By conducting a warehouse audit, a company can likely add efficiency to its supply chain. Regularly assessing your warehouse operations can reveal inefficiencies, help establish sustainable standards, and prevent issues from developing into full-fledged problems.2 Read on to learn how to conduct a warehouse audit, so you can catch problems in their initial stages and optimize for future improvements.3
“By conducting a warehouse audit, a company can likely add efficiency to its supply chain.”
Configuring a Warehouse Evaluation Process
A warehouse audit can be conducted by an internal or external auditor, or by the department itself. Most importantly, the individuals handling the examination must be objective when analyzing past performance and possible improvements.4
When conducting a warehouse assessment, start by collecting both quantitative and qualitative data from key stakeholders in the warehouse, as well as other departments, such as customer service and IT. Be sure to not silo other departments, as they all provide valuable insight and can benefit from understanding the audit results.
After gathering the data, a thorough analysis of data is required to evaluate whether there are any existing inefficiencies or risks. From there, the audit team will produce a warehouse audit report that provides recommendations, risk assessments, and next steps.5
The Warehouse Audit Checklist
It’s important to note that warehouse audits can vary in depth from business to business depending on the extent of operations and the available resources. While it’s beneficial to establish a process that models the aforementioned one, a business with less resources or one that is new to auditing, can benefit by assessing some of the basic items included in this checklist:6
- 1
Warehouse Layout
Determine whether storage space is used effectively and that space used for non-storage activities is kept to a minimum.
- 2
Equipment
Ensure that all equipment is in good operating condition and that routine inspections take place. Additionally, evaluate whether equipment is being used to its maximum potential and is not interfering with other operations.
- 3
Safety
Make sure there are safety and accident prevention policies in place, and that employees and supervisors have a clear understanding of prevention methods.
- 4
Housekeeping
Check that general maintenance is performed, so that all areas, both internally and externally, are kept tidy and sanitary.
- 5
Performance Measurement
Evaluate the overall efficiency of warehouse operations. Then provide recommendations and actionable next steps.
Additional Considerations
Another benefit of conducting a warehouse audit is the ability to use the data gathered to create benchmarks to measure against. One of the most critical benchmarks is cycle time, i.e. the time it takes to process an order from start to finish. A warehouse audit should ideally reveal inefficiencies, errors and waste, all of which can reduce cycle time.7
In Summary
A warehouse audit provides your business with a quantitative and qualitative understanding of the productivity and service levels of warehouse operations. By conducting warehouse assessments, you can identify business progress levels across a wide range of benchmarks, and ultimately help your business to grow and succeed.8
1“The Importance of Supply Chain Management,” Council of Supply Chain Management Professional.
2“Warehouse Audit Checklist for Improved Performance,” Everything Warehouse.
3Newcastle Systems, “How to Run a Warehouse Audit,” Newcastle Systems. February 14, 2017.
4“Warehouse Audit Checklist for Improved Performance,” Everything Warehouse.
5“Warehouse Audit Checklist for Improved Performance,” Everything Warehouse.
6“Warehouse Operations Check Sheet,” Warehouse Education and Research Council.
7Mark Thomson, “Waste Not, Want Not: Audit Warehouse Operations for Inefficiencies,” ORBA, January 6, 2017.
8“Warehouse Audit Checklist for Improved Performance,” Everything Warehouse.
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Shipping - Infographic | 3-min. read
A Quick Guide to Efficient Picking, Packing & Shipping
Taking the time to think about logistics and refine your processes can have a surprising impact on your overall efficiency and can produce financial benefits. It can also likely reduce the pressure of getting your products quickly from your customer’s order to their door. This infographic will help you with throughput—the art of getting things picked, packed, and on their way to your customer anywhere in the world. From organizing your shipping station to creating a workflow, these solutions can help you succeed at efficient shipping.1
Organize Your Shipping Station
By arranging your shipping station with the most commonly sold items in close proximity, you reduce the time it takes for fulfillment. This savings in minutes and seconds adds up and helps reduce the physical impact on your fulfillment personnel.
The ABC classification method.
Classifying your products as either A, B or C helps you evaluate your stock and identify what’s performing well and what is not.
Keep the right tools and supplies handy.
Stocking your shipping stations with the right supplies can help increase speed and accuracy. The simplest glitch, like running out of tape, can impede your whole operation.
1
Have boxes, bags, envelopes, void fill material and small items like scissors and tape handy.
2
Make sure you have flat areas that are wide enough to accommodate all your typical packages.
3
Mark your table with measuring tape to create a guide so you can quickly assess package sizes.
4
Use a pin board to keep your tools and supplies organized and within easy reach.
Create a resupply master list.
As your shipping center grows, make sure that each packing station has its own set of tools and supplies. Develop a master list of packing materials and supplies you’ll need to reorder.
Boxes
List each size and the flat size
Bags and Envelopes
List each size
Void Fill Material
List each type, roll width and diameter or amount of space required for storage
Miscellaneous supplies
List tapes, labels, envelopes, pens, markers and other small items
Create an Operational Workflow
Clearly outline your packing operation with a simple flow chart. Defining your operational flow will give you a visual overview so you can consolidate and condense all the functions into a streamlined working model.
The most efficient packing systems are usually arranged in packing order sequence. Ideally, the packer can then access the orders being shipped from one side of packing station.
Establish Your Packing Order Sequence
Once the items are packed, designate a convenient and centralized place to stage or collect packages ready for transport.
Set up your skid or cart next to the shipping table so your packer doesn’t need to carry items, but can slide them onto a cart heading to your outbound shipping area. Restocking can take place from the back of the table or by simply using portable supply carts.
Set Goals and Measure Success
Once you’ve established your order sequence, set goals around your picking, packing and shipping speeds. Decide how many packages you’d like to ship in a set period of time, whether per hour, per day or per week.
As your shipping process gets in full swing, track your shipping speeds and evaluate them weekly. If the numbers don’t meet expectations, reevaluate your workflow and sequence for further improvements.
In Conclusion
With a few operational changes, your company can transform your shipping process. Empowering your business with sound shipping strategies can help you boost efficiency, decrease shipping time and manage costs—all to positively impact your business and customer service.
1“Efficient Shipping Strategies,” USPS, May 2016.
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