Warehousing Optimization Challenges

Jan 10, 2023

The best practices in warehouse optimization will ensure your business sustainability and profitability in addition to accuracy in fulfilling your customer orders. You need to overcome those challenges by implementing the best solutions for your business requirements. 

In this post, we’ll cover:


What Is Warehouse Optimization?


What Is Warehouse Optimization


The warehouse optimization means the process and practices which involves the use of planning, resources, time & management systems for the most efficient customer satisfaction and experience.

Nowadays, the process of optimizing warehouse management has become less challenging with advanced technologies and next generation solutions.

There are various solutions that involve Artificial Intelligence (AI) tools to help the day-to-day warehouse team and duties management plans in addition to connectivity with advanced technology devices.



Why Warehouse Optimization Is Important?


Why Warehouse Optimization Is Important


As in every business purpose, reducing cost, time of process and increase profitability and resources capacity.

There are many other benefits for any organization implementing Warehouse Optimization plans whether they own a storage space within their resources or being provided with the storage space through a third-party storage services provider.

In both, when the storage is within company assets or via third party, you need to consider maintaining the optimization standards for the best guaranteed results and benefits such as: 

  • Accurate Inventory Management.
  • Reduce The Operational Cost.
  • Reduce The Process Time.
  • Proper Duties & Labor Management.
  • Layout Optimization For the Best Capacity.
  • Efficient Space Utilization.
  • Seasonal Demands Adaptation.
  • Ability To Apply The Best Quality Control Practices.
  • Maintain Health & Safety Environment.


The Most Common Challenges Will Face Your Optimization Process


The Most Common Challenges Will Face Your Optimization Process  

Warehousing is a complex of processes that needs to be carefully organized and connected in an efficient way to overcome any challenges that may occur during daily management.


1. Difficult Inventory Control Management


Inventory management is the main key for successful warehousing optimization procedures. 

Nowadays, there are thousands of Inventory Management Systems (IMS) that adopt the latest technologies to achieve the best results for their customers. In addition to connecting those systems to control devices like barcode scanners with auto-entry feature.

Although those systems are rapidly developed, many organizations from different industries are still facing challenges in maintaining their inventory control management. 

Human error is the most challenging factor in inventory management which can be resolved with an efficient system and compatible scanning devices in addition to a built-in coding system.


2. Variable Operational Cost & Time

When thinking of risks to any organization, the cost & time are always coming on top. In warehouses, the process cost or time can suddenly increase due to fail in maintaining the process optimization or human errors.

The warehouse is the heart if your organization supply chain, and any change (even slight changes) can result to a delay. The delays will usually occur with extra time and that can directly increase the process cost.


3. Inefficient Sortation & Pick-up Procedures

A core Part of the warehousing management systems is a tool to help you display the items you have in your warehouse and assist you to automatically pick from those items with certain type or specifications.

For example, in an automotive spare part warehouse your customer ordered 10 pieces of Nissan Air Filters, the tool can help you sort and pick the item matching specifically your customer order, such as the car model and the year of manufacturing.

Sorting & pick-up through an automated inventory control system, can help you avoid getting the job done without being in hurry or causing errors that will disrupt your inventory management system.

It also can give you a predictable tool to answer on the spot in case your customer asked to provide with the availability of certain item.


4. Layout & Capacity Utilization

Layout is one of the main factors that directly affect the capacity of your warehouse. It is also a challenging necessary initiative which you need to make sure that you assign to an expert in your field.

There are many principles for layout optimization which you need to take in consideration before confirming your final layout design:

  • Design The Best Capacity Layout Possible.
  • Choose The Right Equipment For Your Product.
  • Create a Theoretical Product Journey Timeline.
  • Take Records & Evaluate Results.


The Best Solutions Of Warehouse Optimization:


The best solutions of warehouse optimization


1. Warehouse Management System (WMS)

Thanks to technology, nowadays it has become so easy to have your warehouse management processed through advanced developed systems with decades of experience in the same field to reflect the best functional requirements and day-to-day operation transactions.

It even became easier for small businesses running small storage areas or warehouses to have a cloud base system instead of investing in building an in-house data center.

Those systems can feature many modules that can help you optimize your warehouse management.

Below are the most common modules presented by Explore WMS : 

  • Receiving Management
  • Inventory Management
  • Order Fulfillment & Management
  • Advanced Picking & Shipping
  • Analytics

2. Increase Warehouse Productivity

The main principle you need to consider first when putting a plan for increasing your warehouse productivity is to reduce the human error possibility to the lowest level possible.

Aside from being a main factor that impacts on your business profitability, even a single mistake may lead up to a serious or fatal injury that may slow your operations and lead up to extra charges or delivery penalties.

By automating the repetitive tasks and effective Health & Safety Environment (HSE) procedures in place, you will pretty much increase the warehouse productivity and safety in parallel.


3. Create An Efficient Sortation & Pick-up Procedure:

Whether you are working with the developer of your Warehouse Management System or starting the homework of initiating your Sortation & Pick-up procedure, it is very important to consider reducing the order pick time to the lowest possible as time is the main factor in this type of procedure. Accordingly, labor hours will decrease, and order pick time will decrease which will end up more profitable to your business and cutting the cost of your warehouse operations.

 4. Maximize The Space Utilization

Considering the principles of layout optimization design mentioned in this article, it is very important for your business growth to have the highest capacity possible to utilize your warehouse space.

A warehouse is the distribution center which makes it always risky to go with full storage capacity, which means that if you reach 85% of the storage occupancy then you should consider it as out of storing space.


There are many practical tips to maximize the warehouse space utilization, and below are some helpful ones presented by ENVISTA:

  • Extend Your Racking Up Vertically
  • Install A Mezzanine Above A Floor-Level Process
  • Reduce Aisle Width In The Racking Area
  • Change Your Storage Medium
  • Add Half-pallet Storage Locations
  • Leverage Your Warehouse Management System For Directed Put-away
  • Use Underutilized Space
  • Store Product In Trailers For Short-term Or Seasonal Needs


NTF Warehousing Solutions Can Help You Achieve Your Business Goals:


NTF Warehousing Solutions


NTF Group global warehousing services in Saudi Arabia provide both domestic and international shipments ready to handle your supply chains by reducing its complexity. We also provide movements of products by land, air  and ocean to reach yours items to final destination.


Our warehouse network across KSA enables us to service your short and long-term storage needs such as:

  • Climate Controlled Warehousing Service

For storing products including those that need special handling conditions such as freezers for storing frozen products, humidity-controlled environments for delicate products, such as produce or flowers, and dirt-free facilities for handling highly sensitive computer products.

  • Bonded Warehousing Service

To store imported products for which import duty is yet to be paid.

  • Distribution Centers

If you consider storing your products temporarily, NTF warehouses can serve as points in your distribution system where products receiving and shipping process will be executed quickly from your supplier.

  • General Warehousing & Storage

To keep food or products dry and secure.

  • Long -Term Storage Warehousing Service

Products and documentation Storing purposes.

  • Value Adding Warehousing

NTF warehouse staffs are able to further process your products to support your specific market requirements.

  • Bulk & Specialized Warehousing Service

For the storage of grains, minerals, or other specialized products.


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