How to improve Warehouse Efficiency

Jonny Parker
May 25, 2023

a warehouse with shelves and boxes stacked high on the walls a forklift moving boxes around in the middle of the room

The efficiency of your warehouse is an integral part of your business. Find out how to improve your warehouse efficiency with these 4 strategies.

A warehouse that’s operating efficiently allows you to control costs, maximize productivity, improve overall customer satisfaction, and ultimately, boost your bottom line.

But how exactly do you improve warehouse efficiency? Let’s take a look.

4 Ways to improve warehouse management and efficiency

    1. Optimize warehouse space 

Are you making the best use of available warehouse space? 

While you may need a larger warehouse if you’re growing, it’s always wise to first determine whether you can better use existing space. For instance, you could expand vertically using different pallet storage methods, like push-back or single deep racks.  

These pallets also allow you to better organize your inventory so it’s easier to track and locate specific products, which reduces picking errors and excess stock. Plus, well-organized pallets, with clear spaces between aisles, provide easy product access for more efficient picking, packing, and inventory replenishment. 

    2. Redesign your warehouse layout 

Warehouse layout is closely linked to warehouse space. But, where space refers to the available square or cubic footage, layout refers to the arrangement and organization of different warehouse elements that affect the flow of activities and inventory. It includes equipment, storage racks, workstations, inventory, and other key elements. 

By redesigning and optimizing your layout, you can maximize space while streamlining warehouse operations. For instance, with some warehouse software, you can identify what products are commonly ordered together by customers and what the top products are. 

You can then reorganize your warehouse by combining those products to reduce walking and travel time between workstations, improve workflows, and speed up order fulfillment.

   3. Improve inventory management

 Better inventory management helps improve warehouse efficiency in many ways, including better space utilization and faster order fulfillment thanks to better inventory tracking. 

A few ways to improve inventory management include:

  1. Determining when to replenish stock by calculating the reorder point (ROP). The ROP is simply the inventory level at which companies should replenish stock to avoid shortages and stockouts. 
  2. Accurately forecasting demand by using historical data and market trends. This helps maintain optimal inventory levels.
  3. Investing in the right technology, like inventory management systems (IMS), to streamline the warehouse process and help with real-time inventory tracking. 

   4. Invest in technology to automate 

Technology helps automate warehouse processes, removing manual input while minimizing human errors that cost you time and money. Examples of technology that can improve warehouse management include:

  • Conveyor systems to transport products within the warehouse 
  • Robotic systems for picking and packing
  • RFID technology for inventory tracking
  • Warehouse management systems (WMS) for streamlined order processing and fulfillment, as well as reliable automated purchasing and vendor management. 

For instance, using software like Fishbowl, you can streamline order fulfillment by implementing routing capabilities for picking, automating documentation for packing, and printing labels directly from the platform to eliminate manual steps. You can even expedite the order process with preferred vendors and automatically create important documents, like purchase orders.

Improve warehouse management today

Improving warehouse efficiency doesn’t have to be hard. You just need to take the right approach—from optimizing warehouse space and redesigning your layout to improving inventory management and investing in the right technology. 

Do that, and you’ll not only run a more efficient warehouse but reduce costs and maximize profits.

If you are interested in learning how Fishbowl’s flexible inventory management solution can help your business now, you can book a demo.