10 Warehouse & Distribution Tips
Distribution Tips For 3PL Companies
One (of the many) growing pains every company goes through is correct scaling and managing its current operations with that uncertain growth. For enterprise-level 3PL focused organizations, this can be especially challenging, yet digital solutions are providing new means of safely, securely and quickly implementing correct changes. For large warehouse and distribution based business, DGD Transport reviews what every top 3PL company should practice. Using technology-enabled solutions is how DGD Transport became the best trucking transportation company in South Florida. Explore our 10 specific warehouse and distribution tips below to gain some insight into ideal backend practices.
10 Warehouse Tips
Below we will review our top key factors for ideal warehouse processing, which include:
– Optimized SKUs
– Item Security/Storage
– Cost-Effective Labor & Organization
– Utilizing A Picking Method
– Flexibility
– Signs, Notifications & Awareness
– In/Out Protocols
– Transparency
– Liability
– Internet of Things (IoT)
Optimized SKUs
We will start off with an easier warehouse facet since most on-demand warehouse management systems already include this feature inside their software. Correctly used SKUs provide an initial step to quickly and effectively pulling and analyzing large amounts of raw data (and data). There are a number of ways this can be accomplished, yet department managers should invest time into understanding specific tactics for their specific niche- language, color schemes, etc. Another important factor is how the information collected, organized and interpreted- can be very challenging if item codes are not correctly placed in or required by hand. When correctly installed, SKU’s can assist in inventory management and can be done effectively on a hand-held device. As for in-house use, SKUs can allow the warehouse crew to identify items quickly and track the quantity and quality of package/items.
Item Security Storage
This point touches on a number of factors, namely organization of the warehouse and the separate/secure site of remains terms that potentially contain hazardous materials. Utilize all into one inventory management systems in order to monitor transactions, specific item location in warehouse/status and live camera feeds. While physical locks are great solutions proven to help, DGD Transport recognizes technology as the best answer to this problem. Fingerprint readers are ideal since they can track information based on user, date, item(s) and much more. As more and more companies are interested in item storage, outsourcing may be the best idea- due to all the concerns listed above!
Cost-Effective Labor
Staying on top of your labor costs means staying on top of your business-namely staff. Motivating employees to work with a certain mentality can be challenging but rewarding. Technology comes in (once again) with many effective solutions; allowing staff to see their work (good and bad) in real-time providing feedback, allowing for adjustments. Having a lot of bodies in the warehouse does not mean work is being actively done. Tech-enabled solutions also tend to be easier than traditional means, allowing staff to move on faster, dropping costs over saved time. Train and disciple your team to be agile, responsive, proactive and to use technology when applicable. It is important to note storage space in relation to your team’s working space- the idea in traditional supply chains was to store “maximum possible quantity of every product, everywhere, every time”; this may not be ideal for you. Talk to the working community and your vendors to see if they help with alleviating (ideally eliminating) some over-heard costs.
Utilizing A Picking Methodology
There are a lot of specific practices as far as order picking is completed in your warehouse. When implemented correctly, advanced order picking strategies can lead to overall improvements in accuracy, higher output and better physical space utilization. Some of the more popular choices are (1) pick and pass, (2) zone divert, (3) batch picking, (4) parallel picking, (5) pick to light, and (6) goods to person/ASRS. Each methodology provides pro’s and con’s, so properly analyze your warehouse space, operation plans and staff to know which one to correctly utilize. Some WMS follow specific practices so research both together.
Flexibility
Flexibility in your warehouse means being adaptable and ready for last minute changes. Design your operations to be managed by small experienced staff, invest in modular physical assets for easy moving/storage and plan for worst case scenarios. The unimaginable may not happen, but you will be prepared and if small issues arise, you will be able to quickly solve them. Having backup crew will help you plan ahead for anticipated seasonal demand when you know you need it, not when it’s too late to find the labor (i.e.: delivery of presents during Christmas). Ensure your digital solutions follow the same thinking- mobile friendly, across any platforms and accessible in real-time.
Signs, Notifications & Awareness
While certainly helpful for streamlined workflow(s) in the warehouse, digital and physical notifications are also ethical and legal (depending on the item and location). A top 3PL company will strive to have safety notices, secure and separate locations for hazardous materials and safety items (i.e.: fire exhauster, first-aid kit, etc.) in a accessible locations at all times. GPS and laser based technology allows for push notifications to handheld devices- cross implemented within ideal warehouse management systems- ensuring that staff are notified and/or reminded of important concerns in specific areas. For hazmat and/or hazardous related assets, this becomes an especially important factor, namely during transportation, since there is an exchange of services between different parties.
In/Out Protocols
Managing both physical assets and digital information can become messy very quickly. Between mountains of papers and terabytes of data, both providers and consumers can become confused, killing workflow. Be sure to utilize and properly train all department staff (from front of house to back) to understand their role in receiving, processing and sending information/items. Having clear and respected lines between each part helps quickly identify pitfalls and to alleviate- ideally eliminate- them. Install straight-forward documentation ready for new staff and quality check focused employees should conduct monthly checks on all staff compliance. Communication across all department allows for real-time awareness for all team members; this allows staff members to pass updates to customers, heightening their 3PL experiences, providing a positive-feedback loop for your business.
Transparency
Transparency has become a standard for all business models- as it should be- through on-demand and real-time technology. Users (and staff) can quickly note unethical and/or illegal practices within moments using their handheld devices. From top to bottom, when transparency is built into operations, customers can quickly see (and ideally feel) the confidence behind a company’s words and promises- especially notable between a top 3PL company and not. Explore various technology enabled ideas to provide customers with real-time or on-demand access to their items’ location and other general notification updates. A top 3PL company provides a clear 3PL methodology so their customers can access their items, documentations and ask questions quickly for trust to be gained and solidified.
Liability
Verbal and documented policies should be reviewed weekly to remind staff of correct procedures and the possible repercussions. Department managers at a top 3PL company will update forms and protocols to ensure items are properly inspected, counted and verified before being entered into the inventory management system. Don’t allow unacceptable and damaged items into inventory. We all make mistakes but it’s important to know how to recover- miss-picks cost you time and money, and can damage your company reputation. Top 3PL companies consider implementing automated storage and retrieval systems integrated with light-directed picking features which can eliminate human error.
Internet of Things (IoT)
API integrations and other forms of similar code have provided explosive growth in specific task productivity due to additional options for third party allowances. Such an instance revolves around the Internet of Things (IoT). This can be technically complicated, but when ideally utilized, a top 3PL company can connect their warehouses to control all of their inventory from one location. The ability to monitor one’s inventory and storage technologies remotely can result in reduced downtimes and higher efficiencies. Through social connections, innovative solutions can be provided and also can act as a way of boosting your warehouse’s (or company) reputation.While our list only covers 10 ideal tips and notices, numerous factors contribute to any successful 3PL warehouse. The largest pull should be to thoroughly research your niche market (if applicable), grow and learn from your mistakes and to utilize technology to provide cost-effective, on-demand and eco-friendly solutions. Having a central, cloud based management system is vital- one suggestion is utilizing TruckHub, an innovative user-focused platform that provides real-time and transparent operations. With more and more dedicated organizations providing top 3PL services, outsourcing may be more effective than investing in-house.
WANT TO SHARE A 3PL TIP?
Innovative growth can come from anywhere. Pass any further tips to the community by reaching out to us via Facebook. Through rapid growth in South Florida since 2004, DGD Transport has gained insights from both B2B and B2C projects. Learn and work with us and outsource all your 3PL transportation, warehousing and asset-based needs to us. Regardless of optimizing your warehouse or sending out all your 3PL needs, make sure operations are transparent and compliant.
With our headquarters located at 8005 NW 80th Street, Unit #1 Miami, Florida 33166, we can provide on-demand services to the entire South Florida market. For further information, contact DGD Transport here.
