When to Consider an Assessment of Your Warehouse Operations?

Distribution and Warehousing are both dynamic industries that have many aspects constantly changing, whether it's the evolving supply chain to meet the current limitations, constant price increases for shipping or the challenges to labour which could hinder the growth. The operation of your distribution centre should also be transformed in line with a philosophy of continuous improvements to your processes as part of a strategy for the supply chain believes the logistics consulting services. 

A lot of times, we find that operations have become stagnant or optimised once, but later managed and operated in the same way for a number of years without much modifications. Sometimes they've not been vigilant, and the cost process, procedures, and systems don't serve the business well. This allows them to step back and adjust the facility and operations to prepare for the next season or year.

Fail To Meet Customer Expectations

There's a high risk when the operations fail to meet the customer's expectations, leading to a loss of sales. It happens frequently but the logistics consulting services can help you with it. Here are some important questions to be answered:

• Does order fulfilment not process orders of customers in a timely fashion and in compliance with the operation standard?

• Are there accuracy issues in order-picking or shipping issues that cause complaints from customers about service and return requests?

• Receiving inventory inbound being delayed more than anticipated which could impact backorders that already exist?

• Are you taking the initiative to slot SKUs in order to improve the efficiency of warehouses and fulfilment?

Additional Product Lines

If new lines of product are launched the operations have to quickly be able to determine how the new line will affect the operation beyond the mere increase in storage. So, you might need the construction Real Estate Consulting Services to learn and understand how to expand your storage unit. 

• Will new SKUs require different storage techniques or even specific conditions like climate control? What changes would be required in order to meet these demands?

• The changes to storage will need to be reflected in changes to plan and layout?

• Do the new products need different packaging or labelling which would require changes to the processes, systems and packing stations or even shipping?

• Are the new SKUs integrated into the existing conveyors and handling of materials? Are there any other changes that will conveyors and automation be needed or even more advantageous?

Decline In Current Storage Capacity And Utilisation

A facility can be considered to be at capacity even before it appears to appear to be "full" because space is always required to manoeuvre the floor for pallets, putaways, and the peak of processing. This particular aspect is likely to be among the most important factors that determine the necessity of an operational evaluation for numerous companies.

• Have you maximised the current storage locations? Do you need to look for opportunities to increase storage?

• When the property is "full", do you require ways to prolong the lifespan of the facility beyond the remainder of the lease term?

• Are there any opportunities to increase the use of current locations?

Acquisition Of New Business

On a macro-level, the acquisition of similar categories could appear to be an issue. For instance, hanging clothes or flat-backed clothing. You must consider the attributes of the product including storage, packing and the number of SKUs in order to determine the effect.

• Does the acquisition include an additional distribution centre to your operation? Or will the product be stored and moved to the existing facility of the supply chain?

• Are the vendors alike and, therefore, do they not require additional work or a change to the procedure? Are they? Or do new compliance programs for vendors need to be developed (e.g. the EDI process for invoices, shipments, orders).

• Does the centre provide additional value-added services?

• How will the acquisition affect the use of labour or the efficiency and throughput?

• Does the current Warehouse Management System (WMS) be used, or do you have for them to be transferred to the current WMS?

Conclusion

In the end, to improve your operation by assessing your fulfilment processes with construction Real Estate Consulting Services can help you to pinpoint the issues and opportunities as well as strategies to correct the situation. We hope this information is helpful to you.