warehouse are a key companent of logistics

Warehouse Efficiency – How to Calculate it

The profits your business will bring in can be dictated by the efficiency of your warehouse.

If you have limited space in your storage, you need to utilize the overall space and how it will work best for your business needs. Calculating your warehouse’s efficiency will help you form a plan to increase productivity with space you are dealing with and the use of materials handling. The following issues should be carefully considered because any delays to any of these problems could cost your business precious time and profits:

Turnover Time Of Your Product:

From the factory to the warehouseHow long will it take to move products out of your warehouse and into the hands of your customers after their arrived at your store?

Items need to move quickly if your turnover is slow this is costing you money and limiting the number of products your company can process at one given time.

Unloading And Documenting Your Product:

When your product arrives at your warehouse, you must unload your goods and then document them. If you are slow at unloading the delivery, this will slow down the process causing bottle-necking. This, in turn, will make it impossible process the products.

forklifts are used to store productsThe organization of your warehouse and the availability of the forklift you are using will dictate the efficiency of processing your goods. As this is quite a massive investment for the average business, you could rent or buy second-hand forklifts.

Organization And Storing:

Organization and storing of the productsOnce your products have been unloaded and have documented what you have received, it is time to organize and store all your goods. It is all going to depend on your warehouse’s storage availability and will be a key element in your product turnover time.

The last stage in your warehouse is the arrival and processing of orders. The amount of time it takes for you to receive orders then sent to the warehouse and processing will impact your turnover time. Your overall organization of products picking processes will also affect your overall productivity.

Your warehouse is the backbone of your business. You must calculate your space, the setup of the storage and how well your warehouse can process orders will dictate your business’ efficiency. You must be able to move products onto your customers promptly. Delays due to slow operational actions will cost you and your business valuable profits and customer satisfaction.

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