Warehousing is a major cost in every company. I have noticed during my twenty years in the industry that companies usually have two different attitudes to warehouse production.
The first attitude: “Warehousing is a big cost therefor we need to do everything to cut the budget and keep the costs down, no investments at all” This is a very outdated and conservative attitude towards warehouse logistics but not unusual unfortunately.
The second attitude: “Warehousing is a big cost therefor we need to invest in competence and technology to secure great productivity and quality and in that way keep the costs low as possible”.
In my opinion, of course, the second attitude is the only and correct one. There is no difference between warehouse production and other divisions in the company. You need to invest for a more efficient warehouse like any other production, you can’t cut costs for a better productivity and quality you need to develop your staff and operations. Actually, I am surprised that not more companies have understand this.
Invest in knowledge and competence. Right people on the right position. Warehouse logistics is nothing you run with the left hand, it is too complex and too much money on stake.
If your company intend to run a warehouse in long term and not outsource then be sure to have the right facilities for the purpose. You also need competent software like WMS, WCS and TMS and automation that is adapted and optimal for your warehouse production
Remember, if you have one weak link, it affects the entire warehouse flow. You must have the right conditions throughout the flow.
All modern successful companies have realized that you must have a competent logistics division. It can be the difference between success and failure and of course, it includes warehouse production.
Warehouse production must obtain a higher status in many companies. The best way to achieve higher status is to recruit competence that can calculate and describe the benefits of efficient warehouse production and what profits and competitiveness it gives.
Then it is time to create a project plan and get started to develop the world’s best warehouse production!