Australian warehouse and supply chain managers are continually looking for ways to become more efficient. The management of businesses supply chain across the storage and warehouse industry can greatly affect the operational profitability for the business. The operational efficiency through a productive workflow will add value. However, there is also the management risk for any potential threats that may come about from operational health and safety measures.
Below we have provided a few ways to drive more efficiency through smarter storage solutions.
Choosing a storage provider.
When designing a warehouse, the top priority will be choosing a storage solution that will create a safe working environment. Choosing the right warehouse storage provider will minimize workplace hazards and will also contribute to the operation efficiency in the warehouse production. In Australia, you can select a reputable pallet-racking provider from Melbourne such as National Storage Solutions who can assist you with your warehouse storage and inventory management strategy, so you will improve the overall operational efficiency of the warehouse.
Designing the warehouse for better inventory management.
There are a few considerations that need to be taken into account when selecting the storage solution for your warehouse. These include:
- The size of the inventory.
- The weight of the inventory.
- The shape of the inventory.
These factors will determine the type of racking solution your warehouse should put in place to reduce the risk of overloading, falling items and the threat of injuries to any staff. The racking solution needs the weight to be distributed evenly across the rack. The handling of the items on the racks will be as important for the following reasons:
- Reduce the amount of overhead staff time.
- Ensure that the storage solution will reduce the risk of injury.
- The placement of the loads needs to minimize the threat of injury with picking and forklifts.
- The storage area also needs to correctly label any chemical or hazardous materials. It’s also important to ensure that there is an emergency response plan.
How do Australian businesses stand to benefit from improved warehouse management systems and processes?
The operational efficiency will improve the overall profit margin and facilitate growth. Businesses can implement procedures, processes and systems that will:
- Minimise the risk of injury to the employee, thus reducing the business risk of compensation payouts.
- Minimise the risk of errors, which can lead to the duplication of work or write-offs.
- Minimises the costs from opportunity loss. There will be a greater opportunity to reach new performance, revenue and profit targets with improved systems.
- Reduced dependency on overtime. In Australia, businesses that pay casual staff may need to pay their staff one and a half times or double the rate of pay for additional hours worked for the same amount of output. This greatly diminishes the profitability from the operation.
- There is a reduced amount of capital that gets tied up in inventory. The stock that sits in the warehouse has a value on paper, but it isn’t any good if it isn’t being sold or moved to the point of sale. Improved supply chain systems will ensure that any bottlenecks in the supply chain are resolved.
Accident prevention.
Injury claims and accidental deaths do occur in the warehousing industry. The claims can cost the business thousands or millions in compensation payouts and lost production opportunity. Safework Australia encourages businesses to improve their workplace health and safety to protect employees and potential risks to the business. The most recent report from Safework Australia shows that businesses in the storage industry had 1 in 100 people make a serious claim where 33% were the result of lifting or handling objects; which led to muscular stress. The average payout was $8900 per claim between 2011-2012.
Businesses that rely on stock inventory or warehouse management need to drive efficiency through smart storage solutions. Businesses will generate extra value from this investment, as well as improve employee safety in the workplace.