Is your warehouse ready for the summer?
Having an over-loaded warehouse is like being overweight.
You don’t feel like doing anything useful as it is hard for you. And when you try to do any small task you cause huge mess.
You get tired easily because even smallest tasks are very difficult for you to get it done.
It’s like having cholesterol; having vascular occlusion is just very similar to have your warehouse racks overfull and there are boxes and pallets in the alleys. So forklifts and transpallets cannot move properly you start having delays in your daily routine. Day by day the mess increases until you have a crisis (a heart attack I may say) like production stops or delivery gets so late to the customer that you get penalty It’s time you take action! !
As the summer is coming (well, for the northern hemisphere) it’s time you put your warehouse in shape!
But how you do it?
- Take a decision and make a plan: Congratulations, making the decision for a better functioning warehouse is the half way through it. First you need to make a plan for establishing this desire. Think of what options you have for destruction, other storage locations, sales support, future production plans, overtime for a couple of days, etc.
- Burn your fat: Reduce excess stocks. Decide if you are willing to make any destruction. If not you have to find another solution to keep your excess stock. There are any ways to get rid of excess stocks:
- Whole sale can be a good option if the stock you have is good stock (no damage, active products). You can ask sales team for a special price for these products and sell them easily.
- If the products are not active but in good condition, you can sell it to your own personnel (if you are not a parts selling company of course. People may not be interested in buying screws just because they are offered with special price 🙂 ).
- Give to charity. You won’t be paid but every company should do something for the less fortunate for a better world. Also you will have a less crowded warehouse so you can organise better.
- Giveaway as a present to your customers in you a set of conditions (announce if they buy a certain amount of product X, you offer free Y, Z, etc from your excess stock. Of course you don’t tell the customer it’s your excess stock, shhh! ).
- If your company has other locations in different cities or countries you may ask them if they need the excess stock you have. This can save you a lot of money and is a good option.
- Last option is destruction if stock is not in good condition or it’s best before date has been expired.
- More exercise: You may have to ask warehouse crew to work overtime for a few days until the mess is cleaned. It’s better to work beyond limits for a little time rather than live in the same messy environment every single day with motivation down on the floor.
- Diet: You cannot possibly lose weight without any diet. It’s the same for your warehouse. You need to ask for every incoming box “do we really need it?” Some material might be arriving too early than it’s due date. You must ask your material planners for a more “on time” delivery planning. Iftthe problem is that your suppliers send them much earlier than requested arrival date, purchasing should have word with them and tell it’s important to have it on time, but not too early. Possibly your supplier is trying to lose some weight like you by sending earlier.
- Liposuction: I wouldn’t recommend this for a human but it can be good ffor your warehouse. Ask your subsidiaries, branches, any location you have in your supply chain through the customer to keep more stock and send some of your inventory to these locations. You magically lose a lot of weight! Cool! But the stock you be transferred should be based on those locations’ future sales estimations. Otherwise you’ll create excess there and it’s much worse to have excess in those locations than having in a central warehouse location.
- Change your life style and keep track of it: You must control yourself so you won’t live this again. You must keep up with your diet. You can set a periodic control or set KPI targets to follow up your inventory. This way you can always check how you are doing and know when it’s time to jump in to take necessary actions to prevent “fat” in your warehouse. See more about supply chain KPIs here.
And now you are ready for the summer!
Invite all students or interns for field trips in your warehouse so everyone can see your nice in-shape warehouse.
Also all warehouse crew will be feeling better and much motivated! Being healthy is the key to success.
Warehouse photo from link