Looking for a warehouse strategy? Here are 10 signs of an inefficient warehouse and what you can do about it

Modern, smoothly functioning intralogistics has a significant impact on the productivity of companies of every industry and size. However, even today, many companies still rely on the decades-old practice of storing goods in conventional rack warehouses. But this very method can hinder intralogistics processes.

The following 10 indicators can be used to easily assess whether a realignment of the intralogistics strategy is necessary. The more points that apply to your own warehouse structure and processes, the closer you are to considering switching to an automated storage and retrieval system.

1. Constant storage and retrieval of goods in the inventory

The greater the proportion of frequently requested items (A-items, fast-moving items) in the warehouse, the longer the waiting time until the goods can be made available from the static shelf storage.

Solution: The use of dynamic storage solutions with high throughput rates. These include, for example, automated small parts warehouses (AS/RS). Automated small parts warehouses handle several hundred order items per hour and can help to efficiently manage large order volumes during storage and retrieval.

2. Extensive walking distances in a sprawling camp

During their rounds through a conventional warehouse, employees cover many kilometers to reach the items to be picked and the central picking station. These journeys are strenuous and can take up to two-thirds of their working time.

Solution: Compact devices that allow for high-density storage can be installed in small spaces. The retrieved items are then delivered directly to the order pickers at their workstations, following the goods-to-person principle. In this way, for example, vertical lifts reduce the walking distances of personnel to a minimum.

3. Long search times

When the order picker reaches the shelf containing the item to be picked, further time is spent searching for the compartment or container holding the goods. Added to this is the time required to check and remove the item(s). This process can take several minutes per pick.

Solution: Modern warehouse equipment supports order pickers with pick-by-light or pick-by-view systems. These tools allow employees to identify the items to be picked immediately and accurately using visual signals from LED lamps or laser pointers. Permanently installed barcode scanners also contribute to faster item retrieval and thus minimized search times.

4. Low precision of the picks

Starting with the path to the correct compartment and the visual comparison with the picking list, through checking the item to be picked, and finally ending with the manual confirmation on the picking list: Throughout the entire picking process in the warehouse , there are many dangers for the order picker to make picking errors.

Solution: All of the aforementioned hazards are eliminated with automated retrieval systemscontrolled by sophisticated warehouse management software. These programs only provide the required items at the picking area, where order pickers are further supported by optical aids (see point 3). As a result, the systems now achieve a precision of nearly one hundred percent.

5. Low throughput rate

When picking items manually from the shelf storage, order pickers often only pick a single item per trip, leading to longer distances and wasted time. As a result, employees are sometimes only able to process 50 items per hour.

Solution: Modern solutions such as an Automated Miniload System (see point 1 under Automated Small Parts Storage) allow for up to 250 double cycles (storage and retrieval) per picking station per hour. Productivity can be significantly increased through software-controlled order merging (so-called multi-order or batch picking). Installing an additional picking port on the storage unit further minimizes staff waiting times and thus increases the picking rate even more.

6. Damaged items

Whether on a shelf or in a separate compartment, goods stored on shelves are susceptible to dirt and dust. This is compounded by damage caused by improper storage or removal. All of this reduces the value and lifespan of the stored goods. In some cases, they become unusable for further sale or processing.

Solution: In vertical storage lifts or carousel storage systems, the items are stored in a closed system. This allows for comprehensive protection against dust and dirt. Furthermore, automated storage and retrieval protects the goods against improper handling, as personnel only receive them at the picking station. Errors due to improper handling are therefore reduced to a minimum.

By choosing between storage strategies such as LIFO or FIFO, the dwell time of items in the warehouse can be controlled as desired. Damage caused by excessively long storage times is thus prevented.

7. Missing items

In large, open-plan warehouses, items frequently go missing – mostly due to storage errors. Given the vast, unmanageable space, locating the missing goods becomes a major challenge for intralogistics professionals.

Solution: The warehouse management software for automated storage and retrieval systems is tightly integrated with the company's WMS or ERP systems. This allows for precise tracking of goods throughout the warehouse. It makes it easy to determine the current location of an item or where it was last recorded. The software thus guarantees continuous, real-time inventory monitoring, which significantly reduces the risk of loss.

8. Damage caused by theft

In warehouses with shelves, goods are only inadequately protected against theft, which increases the likelihood of illegal shrinkage of the items.

Solution: Unlike open-plan rack storage systems, the enclosed system of storage lifts, etc., protects goods from unauthorized access during storage. The equipment can optionally be equipped with personalized access at the picking station, secured by code or chip card. Item removals are logged, so it can be proven at any time who requested a potentially missing item. Users without the necessary authorization are completely prevented from removing items. The goods are thus doubly protected against theft.

9. Waste of storage space

Conventional rack storage systems not only require an extremely large amount of space, but also often waste valuable room, for example between the top shelf and the building ceiling.

Solution: Modern storage solutions are characterized by their compact design and high-density storage. Within the units, shelf heights can be individually adjusted to the stored goods, efficiently minimizing volume consumption. Software control ensures that goods are stored in the optimal location to fill the available space. This results in minimal wasted space compared to traditional rack storage systems.

Furthermore, the devices can be individually adapted to building heights, which further improves the use of available space. In this way, savings of up to 66% (for horizontal carousels), 75% (for vertical carousel storage systems), or even 85% (for vertical storage lifts) can be achieved compared to rack storage systems.

10. Lack of ergonomics in the workplace

Order pickers working in high-bay warehouses have to constantly bend or stretch to retrieve sometimes heavy goods. This puts excessive strain on their arms, and their legs and feet also suffer from the long distances they cover in the warehouse. Over time, this leads to strain throughout the entire muscular system. The consequences of this excessive strain include wear and tear or even injuries, which translates into increased sick leave among employees.

Solution: Devices that deliver the requested goods to staff at an ergonomically designed picking station, following the goods-to-person principle. Instead of walking long distances, employees retrieve the items at an ergonomically optimal height, roughly at hip level, within the so-called "golden zone." Bending or stretching is eliminated, and arms and legs are not strained. Employees are healthier and more productive.

Why Xpert.Plus?

Xpert.Plus is a project of Xpert.Digital. We have many years of experience in supporting and consulting on warehouse solutions and in logistics optimization, which we combine under Xpert.Plus in a large network.

I would be happy to serve as your personal advisor.

You can contact me by filling out the contact form below or simply call me on +49 7348 4088 965 (Munich) .

I'm looking forward to our joint project.

 

 

Xpert.Digital – Konrad Wolfenstein

Xpert.Digital is a hub for industry focusing on digitalization, mechanical engineering, logistics/intralogistics and photovoltaics.

With our 360° Business Development solution, we support renowned companies from new business to after-sales.

Market intelligence, smarketing, marketing automation, content development, PR, mail campaigns, personalized social media and lead nurturing are part of our digital tools.

You can find more information at: www.xpert.digital – www.xpert.solar – www.xpert.plus