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 * Transportation Services
 * Transportation Management Solutions

 * Warehousing and Distribution
 * Warehouse Design
 * Warehouse Operations
 * Multi-Client Warehousing
 * Network Design
 * Freight Brokerage
 * Become a Carrier for Penske

Contact Penske Logistics about our services.

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ClearChain® Technology SuiteSecure Your DataIncrease Your VisibilityImprove Your
EfficiencyKeep Your Supply Chain Moving

Contact Penske Logistics about our services.

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AutomotiveChemicalConsumer ProductsFood and BeverageHealthcare and
PharmaceuticalsHigh Tech and ElectronicsIndustrial ManufacturingPublishing and
PackagingRetail

Contact Penske Logistics about our services.

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 1. Logistics Home >
 2. Solutions >
 3. Warehousing and Distribution >
 4. Expert Tips to Optimize Warehouse Efficiency and Productivity >


EXPERT TIPS TO OPTIMIZE WAREHOUSE EFFICIENCY AND PRODUCTIVITY

OPTIMIZING WAREHOUSE PROCESSES CAN HAVE A BIG IMPACT ON YOUR BOTTOM LINE AND
ENHANCE SERVICE TO YOUR CUSTOMERS



The area within the four walls of the warehouse is at a premium, and effective
and efficient warehouses maximize space, increase productivity and improve
performance. They also make the most of available labor and ensure timely
service. From improving slotting patterns to embracing technology, there are
several ways to optimize the movement of goods.

Improve Slotting Patterns: Optimal slotting patterns place high-velocity pick
items as close to the door and as tightly together as possible to drive
efficiency. Optimal slotting designs are based on historical sales data,
including volumes and A, B, C and D movers, along with forecasted demand and
seasonality. That data will provide insight into what to stock and where to
position it to get the top movers out of the door faster. It isn’t hard to move
slotting patterns as demands change, and adjustments should be completed at
least once a year to ensure efficiency. Some industries, such as food and
beverage, change slotting patterns seasonally.

Separate Fulfillment Channels: The growth in e-commerce means more and more
warehouses have three fulfillment channels: shipping to their own locations,
outside retail locations and business-to-consumer. Depending on the volume or
the way warehouses receive orders, there can be a pallet area, case-pick area,
and an each-pick area to maximize each category’s efficiency.

Find the Ideal Racking Solutions: The right storage solutions are often based on
the cost of specific geographic locations, which varies. Space is much more
expensive in California than in the Midwest, so in California warehouses, it
might make sense to invest in vertical racking. Sites can utilize single-deep
racking, double-deep racking, push-van racking or other types to get additional
spots on the rack.

Examine Labor Standards: Labor is central to warehouse operations and software
can help manage the movement of people and track productivity. That data can be
compared to warehouses’ labor management time standards and results should be
evaluated every day after every shift to ensure employees are meeting their
productivity standards.

Utilize a Robust Warehouse Management System: A warehouse management system
provides inventory visibility and tracking and ensures products don’t get mixed
up or misplaced. Improving your warehouse management software can provide
several benefits, including the traceability of products, which will become even
more important for certain industries, such as food and beverage, that have
increased safety standards.

Invest in Technology: Various technologies can help improve operations within
the warehouse. Some warehouses use a voice-pick system to help pick items more
efficiently and employees can close out orders as they pick them, using their
voice and an index finger scanner. Radio frequency scanners, including forklift
mounts, handhelds and wearables, direct employees to the correct picking
location. Once employees pick the products, the system automatically updates the
picked items in the warehouse management system.

Augment Labor: Drones and visual guided vehicles can help free up human talent
to focus on more important tasks within an operation and improve overall safety.
Drones can fly through a distribution center’s aisles and provide updates on
inventory or alerts if products are not in their assigned slot. Visual guided
vehicles can be used to move pallets or other inventory throughout the
warehouse, and are trained to run the same pattern.

Create a Contingency Plan: Supply chain disruptions have highlighted the need
for contingency planning, which can range from preplanning for a natural
disaster to knowing how to ramp up operations if there is a spike in business.
Thinking through and predefining potential scenarios can ensure an efficient
shift when necessary.

Utilize a Multi-Client Warehouse: Companies looking to expand their footprint
and move inventory closer to end consumers are turning to multi-client
warehouses, which enable them to take advantage of smaller space within a
facility. Multi-client solutions make sense for customers needing 75,000 square
feet of space or less.


REALIZE THE BENEFITS OF WAREHOUSE OPTIMIZATION

From efficiency improvements, lowered operating expenses, enhanced worker
productivity and reduced turnover to greater inventory management and better
customer service, the benefits of a solid warehouse optimization plan are
significant. Ensuring you have the right processes and platforms in place can
help your business run more efficiently than ever before.

There are many elements to choosing the right logistics partner. Penske places a
premium on taking the necessary time to clearly understand how our logistics
solutions may impact the entire company. Our goal is to ensure the efficiencies
provided by Penske are realized at virtually every level.

For more information on what Penske Logistics can do for your organization,
please contact us at 800-529-6531.

Don Klug is vice president of sales, distribution center management for Penske
Logistics. His responsibilities include oversight of teams that support the
company's warehousing operations, which include engineering solutions, startup
operations and continuous improvement initiatives. Prior to joining the company
in 2016, Klug was the vice president of engineering at NFI and director of
distribution engineering for Thermo Fisher Scientific. Klug earned a bachelor's
degree in industrial engineering from Ohio's Kent State University. He attained
Project Management Professional (PMP) designation through the Project Management
Institute.

Contact Us


RELATED LINKS

Warehousing and Distribution
Warehouse Design
Warehouse Operations


WAREHOUSING AND DISTRIBUTION ARTICLES

EXPERT TIPS TO OPTIMIZE WAREHOUSE EFFICIENCY AND PRODUCTIVITY

BENEFITS OF MULTI-CLIENT WAREHOUSING

CROSS-DOCKING’S RISE AS A SUPPLY CHAIN RISK MANAGER

UNLOCK THE POWER OF SUPPLY CHAIN NETWORK DESIGN

PENSKE BRINGS AUGMENTED REALITY, TECH INNOVATIONS TO THE WAREHOUSE

WAREHOUSE DESIGN

WAREHOUSE OPERATIONS

MULTI-CLIENT WAREHOUSING

NETWORK DESIGN


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