3 Simple Ways to Create a Green Warehouse

Why do we need to create a green warehouse? One of the most obvious benefits is to reduce your operating expenses. Developing a sustainable warehouse means less storage, organization, and transportation costs. Besides, these environmental protection measures will help protect the environment and reduce waste in the supply chain.

Green-Warehouse丨ChinaDivision
Green-Warehouse丨ChinaDivision

Recycle

Recycling is an essential step in green warehouse management. Used packaging boxes or other materials can be sent to recycling centers to be converted into usable materials or find new uses. These practices can help you reduce your carbon footprint.

Warehouse lighting: install energy management system

Do you always need to turn on the lights in every part of your warehouse? Probably not. Install an energy management system that knows which lights need to be turned on and when. Besides, replace those old bulbs with energy-saving LED lamps to improve energy efficiency and save electricity bills.

An appropriately located warehouse 

A well-located warehouse can help improve your delivery efficiency and reduce shipping costs. Establishing a warehouse at a centralized location in your customer’s transportation location can help you quickly deliver products and set a good reputation for your business. Besides, the shortening of the transportation distance helps to reduce the gas emissions of vehicles.

Reuse

The green warehouse can reuse many materials. From corrugated boxes to pallets, a variety of products can be used multiple times. The manufacturing cost of these packaging materials is very high. Choosing to reuse or recycle them can save costs and reduce the impact of production on the environment. Whether you are reusing the packaging sent to you by a supplier or encouraging customers to return the packaging for reuse, it is a company’s environmental effort.

How Inventory Management Techniques Can Increase Your Profit!

Why is inventory management important?

Inventory management helps reduce operating costs

Enterprise daily operating costs include the staff salary, warehouse rent, storage cost, logistics cost, and so on a series of spending. Inventory management techniques can help you minimize losses.

Inventory means that you store a valuable and limited resource in the warehouse, and you can make it cash only by selling this resource.

For the following types of inventory you need to sell in time:

Products with shelf life that are prone to spoilage: food, medicine, cosmetics, etc. If these products are not sold in time, they will deteriorate and need to be discarded in time.

Outdated products: Outdated phone covers, clothing, or shoes that were popular last year, etc. Such slow-moving goods will occupy a certain amount of inventory space for storage.

To minimize storage costs, you can take certain measures and technologies to achieve efficient inventory management and lower inventory levels.

Effective inventory management techniques are listed below:

Inventory-Management-Techniques丨Unleashed-Software丨ChinaDivision
Inventory-Management-Techniques丨Unleashed-Software丨ChinaDivision

First In First Out (FIFO)

First in first out (FIFO) is an inventory management method widely used worldwide. This method means that the first batch of goods entering the warehouse is also the first batch of products sold.

For example, supermarkets or some small shops will place the latest date of yogurt at the end of their shelves.

But what are the limitations of this technology?

Some products are not suitable for this inventory management technique. For example, red wine. Retailers like to store this kind of goods because they do not have strict shelf-life requirements. Although FIFO can better and more accurately value the inventory on the balance sheet, products such as wine are not so accurate.

inventory-management丨Mitrah-Technology丨ChinaDivision
inventory-management丨Mitrah-Technology丨ChinaDivision

ABC inventory management

ABC classification is also a commonly used inventory management technique, which usually divides inventory resources into three categories:

Class A inventory control is the most stringent and requires accurate records,
Class B inventory control is slightly strict and appropriate records,
Class C inventory control is the simplest and least record.

What are the benefits of this inventory management technique?

ABC analysis is a method of identifying inventories that have a significant impact on the overall inventory cost. There are different controls for each type of inventory.

In other words, each inventory does not have the same value. Dividing inventory into categories A, B, and C can help you determine their respective importance to your business.

First, Class A stocks are critical, often high-value and high-margin items that require regular and frequent inspections; B is next; Class C belongs to the lowest value, so you just need a little attention. First, Class A stocks are critical, often high-value and high-margin items that require regular and frequent inspections; B is next; Class C belongs to the lowest value, so you just need a little attention.

So, how to allocate A, B, C inventory?

There is no clear ratio, everything depends on the goals and standards you set.

According to the Pareto principle, 20% of products bring 80% of revenue. The ratio of ABC’s three inventory is rough as follows:

Class A inventory—accounting for 30% and 60% of total revenue
Class B inventory—accounting for 50% and 30% of total revenue
Class C inventory—accounting for 20% and 10% of total revenue

What are the benefits of warehouse & distribution automation that you need to know?

Warehouse & distribution automation includes automated data collection and inventory control. All work is coordinated through the warehouse control system and the use of necessary hardware equipment and software systems. This helps greatly improve efficiency, but what tools used to achieve it?

What facilities are involved in Warehouse & distribution?

  1. Barcode labels: They form the basis of warehouse & distribution automation, through which products can be tracked. Barcode labels can accurately capture product data and eliminate errors in product tracking or product shipping. The use of barcode labels can realize automatic warehouses, inventory monitoring, purchase planning, improve picking efficiency, optimize transportation, and reduce stock-outs.
  2. Inventory Management System (IMS): This facilitates real-time monitoring of inventory levels, product information, and storage locations, thereby providing companies with a high level of inventory control.
  3. Automatic storage and retrieval system (AS/RS): The software system consists of machines that move up and down on optimized channels to retrieve or place items. They provide improved inventory control and product tracking. They can also ensure that the warehouse is better arranged vertically and horizontally, thereby saving inventory. The key elements of AS/RS include storage and retrieval machines, automated guided vehicles (AGV), frame structure, and warehouse control system software (WCS). All these components work together to receive, place, pick up, pack, and ship items along an optimized route.
  4. Necessary hardware equipment: If you do not use the necessary hardware, you will not be able to retrieve data and monitor activities from the barcode label, and will not be able to achieve automation. Commonly used devices are portable data terminals, stationary computers, bar code scanners, rugged tablet computers, and label printers.
warehouse-distribution丨ChinaDivision
warehouse-distribution丨ChinaDivision

The benefits of warehouse & distribution automation

Automating your warehouse system can bring the following benefits:

  • Reduce labor costs and other operating expenses.
  • Improve warehouse space utilization and optimize warehouse layout and processes.
  • Improve accuracy, efficiency, and productivity while minimizing labor expenditures.
  • Improve inventory accuracy and avoid complete depletion of inventory.
  • Automatic storage and retrieval system (AS/RS) will improve inventory control and cargo tracking.
  • Automatically collect product shipment data and inventory tracking to eliminate inventory misplacement, shrinkage, or loss.
  • With the available data, the efficiency of the operator’s picking, packaging, and transportation improved, so that the order can be shipped and delivered in time.

How Does Warehouse Automation Reduce Costs?

Warehouse automation can help improve accuracy, efficiency and reliability, and save labour costs. Most warehouse operations need to pay high labour costs. According to inbound logistics data, 65% of the warehouse’s operating budget belongs to labour costs. The annual expenditure for a warehouse with 100 employees is nearly $4 million. With this in mind, it makes sense for logistics companies to consider using automated warehouse processes.

How does warehouse automation work?

Warehouse automation works by automatically collecting data and controlling inventory. The warehouse control system uses the necessary hardware equipment and software systems to coordinate all operations. Here is how to achieve:

Warehouse-automation-丨Avidbots丨ChinaDivision
Warehouse-automation丨Avidbots丨ChinaDivision

1. Barcode label:

Barcode labels are the basis of warehouse automation. Warehouses track items through them. Barcode labels can accurately capture data and eliminate errors in tracking or shipping items. The use of barcodes helps inventory tracking, restocking planning, improving picking efficiency, traffic optimization, and reducing stock-outs.

2. Inventory Management System (IMS):

Check inventory levels, product information, and storage locations in real-time, thereby providing companies with high-level inventory control.

3. Automatic storage and retrieval system (AS/RS):

AS/RS consists of machines that move up and down on optimized aisles to retrieve or place items. They provide improved inventory control and item tracking. They can also ensure that the warehouse is better arranged vertically and horizontally, thereby saving inventory.

The key elements of AS/RS include storage and retrieval machines, automated guided vehicles (AGV), frame structure, and warehouse control system software (WCS). All these components work together to receive, place, pick up, pack, and ship items along an optimized route.

4. Hardware equipment:

Use the necessary hardware to help retrieve data from barcode labels and monitor activities, otherwise, warehouse automation will not be possible. Commonly used devices are portable data terminals, stationary computers, bar code scanners, rugged tablet computers, and label printers.

Five Tips for Optimizing Warehouse Operation

Warehouse operations occupy an important position in e-commerce logistics, but if there is an error in the processing of inventory data or there is a problem with the back-end warehouse logistics, the warehouse operation may quickly collapse.

Moving the product from the warehouse to the door of the customer has almost no room for error, which affects your company’s reputation and revenue. Warehouse operation optimization plans can improve efficiency, space, and resource utilization through automation and careful planning, and deliver them to customers accurately, thereby improving customer satisfaction and experience.

Understand product movement speed

Product movement speed refers to the speed of merchandise sales. Certain products in each warehouse will move faster during special seasons or during major promotions.

At this time, the layout of the warehouse should allow these products to move faster and more conveniently. Placing them in an easy-to-extract position can speed up the warehouse operation. One solution is to place them as close as possible to the packaging area.

Warehouse-Operation丨ChinaDivision
Warehouse-Operation丨ChinaDivision

Minimize human error

The lower the degree of human error, the higher the efficiency of the warehouse operation. Repeated automated marking of all products in inventory is very important. If this process is a human operation, errors will occur no matter how many trainings employees receive.

Robot technology

The warehouse that invests in robotics has obvious benefits in reducing expenses and increasing efficiency.

Decades ago, the scope of technology in warehouse operations was limited to robotic arms that could move or lift heavy objects in accordance with human instructions. Today, technology can take on more tasks.

The following are some of the machines commonly found in warehouses today:

  • Automatic guided vehicle
  • Autonomous robot
  • pilot-less airplane
  • Automated storage and retrieval system (AS/RS)

The use of these innovative tools has some positive effects including higher customer satisfaction, fewer delivery process errors, and becoming a means of attracting customers.

How to Reduce Supply Chain Costs?

One of the best ways to reasonably control company expenditures is to reduce supply chain costs. Fortunately, this goal can be achieved in some simple ways.

However, what you need to understand when you start with this part is where the key points are because the correct reduction with a clear understanding will bring the greatest return in the future.

Next, this article will make some suggestions for reducing supply chain costs and increasing profits.

Reduce-Supply-Chain-Costs丨TASK丨ChinaDivision
Reduce-Supply-Chain-Costs丨TASK丨ChinaDivision

1. Cut unnecessary space costs

Making full use of the space you have will save you money every day. As we all know, renting a warehouse to store materials requires daily rent, which will be a lot of money for a long time. Evaluate the utilization rate of your current warehouse space and find a warehouse that is more in line with actual needs that can save some money.

2. Process automation

Warehouse automation is not only a fashion trend, but it can also help you achieve the purpose of reducing supply chain costs. Ask professionals to provide assessment and advice on how to implement automation.

3. Make timely adjustments to customer needs

One of the ways to reduce supply chain costs is to make timely adjustments to customer needs. As the season changes, you will find that customer needs are constantly changing. You can follow these changes to make more accurate sales policies.

4. Minimize product damage rate

The improvement of the product packaging level will help reduce the probability of damage to the product during transportation. Make sure that the staff responsible for this area pack your products correctly to minimize breakage rates.