Editors note: This post was originally published in June 2015 and has been completely updated for accuracy and comprehensiveness.
Your warehouse can be a competitive advantage when optimised for efficiency. Short lead times, clear inventory costs and accurate inventory requirement forecasts are strong indicators of a well performing warehouse. But to reach those milestones, reducing waste is a quantifiable and achievement suggested method.
Below are six methods for reducing waste by implementing an effective ERP system:
1. Accurate Production
Delivering the right product at the right time to the right customer is critical. When undersupply affects lead time to customers, satisfaction levels are likely to drop. While oversupply puts a strain on the warehouse storage and picking processes. MYOB Greentree offers tight inventory control with accurate inventory requirement forecasts to cater more readily for predictable demand changes.
2. Optimise Storage and Picking
Where goods are stored in the warehouse makes a sizeable difference to the overall operation. MYOB Greentree offers some of the following improvements:
- Arranging goods so most popular are more easily accessible to pickers while those held for longer time periods are placed in less convenient locations
- Locations of goods according to storage profiles and capacity limits easily identifiable
- Fast moving stock arranged so first in is first out to ensure due by dates and shelf life are met in accordance with retailer’s guidelines combined with alerts for stock approaching those dates
- Stock held for appropriate lengths of time to ensure cost of storage does not exceed return
3. Quality Control Management
An effective quality control management system where goods are effectively checked in the right sequence and approved by the correct people keeps the warehouse flowing and more likely to meet efficiency and QA KPIs.
4. Well trained, efficient and motivated employees
A well-managed workforce can offer vast improvements in warehouse operations and an ERP software system can support the efforts of senior management. Well trained, efficient and motivated employees are more likely to process goods correctly with a reduction in waste. Some examples of how Endeavour Solutions deploying MYOB Greentree can address these issues:
- Training, certifications and OH&S safety records are tracked to ensure staff are up to date and able to perform at their best
- Retaining employees by offering flexible hours (simply tracked via fingerprint scanning to record attendance),
- Performance management
- Flexible systems to cope with fluctuating workforce numbers in the case of seasonal products
5. Well maintained equipment
100% uptime would be a glorious thing. Storing and tracking maintenance and upgrades, warranties and costs gives your team the best chance of reaching the ultimate goal.
6. Business Intelligence
Data analysis with clear KPI performance indicators highlights areas requiring review and those where performance is excellent. Both areas require actions to adjust processes and continuously improve warehouse operations to reduce waste and inevitable improve efficiency.
To discuss your warehouse requirements, please contact a member of the Endeavour Solutions team on 1300 583 097 or view our MYOB Greentree page.
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