Three Critical Tips for Managing Your Distribution Facility

Posted on: 19 April 2018

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If you are interested in maintaining a successful distribution facility, you must ensure that your operations are efficient. In simple terms, you must ensure that your merchandise is constantly moving and the customer expectations are met. Also, you must maintain good and stable business relationships with reliable transportation and delivery services. In addition, you must be diligent in managing your distribution centre to minimise inefficiencies and subsequent losses. Here are some simple tips to help you attain the best results.

Incorporate Technology

There are some beneficial technological innovations on the market which can help you manage your distribution facility with a greater degree of ease. For instance, you can incorporate a warehouse management system into your operations. This type of software has numerous advantageous features. For example, the package will have a shipping notification feature. This element will help you monitor your inbound orders, allowing you to coordinate shipments with replenishments. You can also use tools such as workflow organisation systems, slotting modules and vendor compliance programs for ideal management efficiency.

Manage Your Inventory

You should understand your inventory and establish a management plan which will help you maximise your profits. The most important issue that you must think about is the type of merchandise that you should stock. You can decide to stock a specific brand or category of goods in your distribution centre. Alternatively, you can use your warehousing space for a large variety of products so that you can obtain the benefits of diversification. You should also be attentive to the volume of goods in your inventory. You should determine the number of items that you should have in your facility at any one point. In general, it is advisable to aim to have a low inventory and an increased velocity of product movement. This structure will minimise the losses caused when goods expire.

Organise the Facility

The inefficiencies in your distribution centre might be attributed to disorganisation in the facility. In general, warehousing spaces tend to feature numerous and complex organisational possibilities which can be difficult to implement. As a result, most business owners settle for mediocre organisation of their facilities. The long-term consequences are inefficiency in the movement of merchandise and a decrease in the productivity of workers. You should take time to map out your warehouse and create an organisation plan that minimises time wastage and confusion. You should develop a clear path that allows goods to flow into the facility through delivery and ensure that they can be shipped out without complex movements.