Warehouse Management Guide: Process & Challenges

Warehouse management refers to the processes and operations that help with the day-to-day operations needed to run a warehouse. Stock control, shipping, distribution, and employee management are all essential to warehouse management. Warehouse management involves monitoring and optimising these processes to make them faster and more efficient.   

Let’s review some of the most common warehouse management strategies.  

1. Cycle counting  

Cycle counting is an inventory management technique in which you regularly count small subsections of your inventory to make sure you have the correct amount of stock.  

2. Zone picking  

Zone picking involves different parts of an order being stored in different zones and different teams being assigned to pick and sort from within that zone. This approach makes the picking process faster and more efficient.  

3. FIFO  

First In, First Out is a warehouse inventory control method in which perishable goods are protected from expiring before they can be shipped. The methodology holds that the first items to come into a warehouse are the first to leave, reducing waste.  

4. FEFO  

In comparison, FEFO stands for First Expired, First Out. This approach holds that the items that expire first must be used first.  

5. Batch packing  

Batch packing is when warehouse employees pick and pack items for multiple orders at once to help ensure efficiency.  

6. Pull system  

As a component of the lean manufacturing principles, a pull system is when items are only pulled once they’ve been ordered, rather than pulling items based on forecasts. This approach helps conserve employee energy and supports greater productivity.  

What is a warehouse management system?

The majority of effective warehouse management strategies include warehouse management software (WMS). You can use a WMS to effectively manage and track inventory levels, orders, and deliveries. You can use a WMS to automate much of your warehouse management processes, helping to potentially save you time and money and improve the productivity of your staff by freeing them up for other tasks.  

To read up on warehouse management systems and what they can do, check out this post.  

Let’s explore some of the best practices you can use to improve your current warehouse management. 

Automate processes where possible

You can use automation tools to automate much of the receiving, picking and packing, and shipping process. Software tools and artificial intelligence, such as AI-based picking-and-packing robots and autonomous vehicles, can be an essential part of an efficient warehouse.  

The use of these tools speeds up operations, reduces costs, helps cut down on manual errors, and gives employees time to focus on other tasks. McKinsey says that automation can improve productivity in the warehouse by up to 25%. 

Implement zone mapping in your warehouse

To streamline receiving, picking, packing, and shipping processes in your warehouse, you can divide them based on different product factors such as weight, size, and how often those items are ordered. Once you’ve chosen which factors you’ll focus on, create a clear zone map and label each section of your warehouse. 

Use barcode scanning to reduce errors

You can use RFID and barcode scanners to scan items as soon as they enter the warehouse. Use these tools to track and organise your stock by scanning the barcodes on the items that come into the warehouse. These tools help to free up employee time and reduce manual errors, they can potentially improve up to 100% of order picking accuracy. 

Put in place reward processes where possible

As we cover above, employee turnover is a huge issue in the warehouse. As such, putting in place reward schemes to help improve productivity and improve employee retention can be an essential part of running a successful warehouse.  

Write out a clear rewards policy and inform your employees of what they can expect for hitting certain milestones such as loyalty to the company or finishing certain tasks faster. Trial different rewards such as bonuses, gift cards, or extra days off to see which work best.  

Commit to regular layout reviews

Layout reviews can help you make sure your warehouse layout is working best to support your day-to-day processes. Experiment with different layouts quarterly or annually to see which works best for your warehouse.  

Your layout should optimise the space and ensure that employees can undertake their work as quickly, safely, and efficiently as possible. 

Implement lean practices

Lean practices focus on providing valuing while cutting back on waste. Lean practices help protect employee safety, improve efficiencies, and help employees improve standards throughout the warehouse. 

Follow: 

1. Sort: take away unnecessary items (such as forklifts that aren’t being used) and sort other items based on how often employees use them.  
2. Set in order: clearly identify areas where each item should be stored. 
3. Shine: make sure everything stays clean. 
4. Standardise: put processes and systems in place to help employees stick to the above point. 
5. Sustain: commit yourself to maintain these strategies over time. It’s essential to educate employees on the benefits of these practices to ensure they continue to uphold them.  

A well-managed warehouse is a necessity for reducing employee stress, protecting customer satisfaction by making sure the right items get delivered on time, and ensuring safety and efficiency throughout the warehouse.  

Mintsoft’s WMS system can help you streamline and automate your operations. Our custom features include real-time inventory tracking, branded customer portals, the facilitation of stock control methods like FIFO and FEFO, and a mobile picking app.  

To find out more about Mintsoft’s warehouse management capabilities, please download our brochure.