Logistics services, related to organization of storage and delivery of goods at the right time in the right place and in the right amount, require significant investments: efforts, money and organizational resources. It does not matter what type of goods to be stored there: medicaments, industrial equipment, food products or chemicals – reduction of logistics costs is extremely important issue in any case. Practice shows that using of special storage technologies and techniques helps to reduces the cost of warehousing services. Optimization of storage technologies is a complex task that includes several successive stages.
The main costs for the delivery of goods is concentrated in the sphere of storage services. In this case ill-conceived and inefficient inventory management and inefficient system of warehousing leads to a substantial increase in logistics costs, the need for new storage spaces while reducing the level of services quality. Proper organization of warehouse operation takes into account many factors: location, equipment, the level of staff professionalism and tracking system of products in stock. These areas include enormous potential for reduction of logistics costs and risks of disproportionate overgrowth.
All problems of warehousing complex, which reduce current performance level can be divided into several groups: technological problems (methodology of warehouse operations execution), informational (systems for data processing, goods accounting, communications between departments), technical (used equipment) and organizational (definition of tasks, functions, spheres of responsibility). Solving of organizational and technological problems can improve a performance of a warehouse. Organization of warehouse operation at a new level gives a quick effect and does not require substantial investment in the purchase of equipment or information systems. At the same time, experience shows that the introduction of low-cost organizational and technological solutions gives an opportunity to reduce the cost of and improve the overall quality of storage services.
Development of new technologies allows you to reduce operating costs and increase storage efficiency. At this stage, the following tasks should be fulfilled: assessment of cargo traffic, the calculation of statutory reserves, zoning, determining of necessary racking equipment, the development of optimal methods of placement and movement of goods that are stored in warehouses. These problems solving can significantly reduce the cost of products storage, increase the capacity of the warehouse and thus reduces the cost of logistic services.
If you want to optimize the performance of a warehouse it needed to be automated and then a certain system of goods movement should be integrated in the operation process. Automation of warehousing processes contributes to successful operation as it leads to accuracy in shipping and acceptance of goods and reduction of time and labor costs. Integration of modern WMS system meets current business requirements and supports warehouse future development. In this regard, WMS system allows you to control trade flows. A typical misconception of some managers is that accounting software or similar programs that register the movement of goods in the warehouse enable them to automate inventory management. Practice shows that it is not so. Only WMS system helps to take decisions (form orders and consignments) in the process of warehouse operation, when the complexity and speed of operations exceeds the capacity of human brain.
Cory Hunter for www.globalwhse.com about Ontario warehousing facilities.