The global market is increasingly pressuring businesses to improve the efficiency of their operations. Today's warehouse management system is no exception. Using lean principles, warehouses will see a remarkable improvement in organization and product flow as well as their ability to meet the demands of customers.
Warehouse management is a system that supports the daily operations in a warehouse. Today's warehouses have to manage the flow of material within the facility, as well as the flow of information throughout the supply chain. An effective warehouse management system helps businesses by:
A growing trend for pick-and-choose orders and a fluctuating market have created new challenges for warehouse management. Warehouses can no longer stockpile products and wait for customers to purchase from their predetermined supply. Instead, warehouses must continuously move new or updated products to meet an ever-changing demand.
Challenges encountered by warehouse management may include the following:
Poor layout: Some storage areas may be overfilled while others are underused, which makes it difficult to find supplies. There can be too much space between workstations, increasing the time it takes to move an order from station to station. And workers may have to excessively reach, bend, or stretch to complete their tasks.
Ineffective storage and transfer of supplies: Fast-moving items might be stored in a tough-to-reach space, increasing the time and labor it takes to resupply picking lanes.
Ineffective processes: Frequent defects may be caused by poor inventory management, missing or damaged materials, and mislabeled supplies.
Recurring slow periods in the supply chain: Workers must wait for materials to be resupplied before shipments can be processed. Approvals for shipments and new materials can take too long to process and orders backup.
Warehouses will receive many benefits by implementing lean manufacturing in their management system. Warehouses will be able to meet the changing requirements of their customers by improving their efficiency, reducing errors, maximizing the space available for supplies, and by pulling supplies based on customer demand. Other benefits include:
While warehouses face many difficult challenges, lean manufacturing tools can be used to overcome many of them. In particular, value stream mapping (VSM), 5S, and Kanban can be used to make warehouses more efficient.
Value stream mapping is a process that enables warehouse managers to understand how things are currently working. Workflow is visually mapped out and relationships among processes are clearly identified, enabling warehouse managers to:
By creating a visual map, warehouse managers can identify materials that are being stored ineffectively or handled too often. They can also improve the warehouse layout and storage system to reduce handling and improve how items are stored. For example, fast-moving items should be easy to reach, while slow-moving items can be placed towards the back of the warehouse or at the top of the storage rack.
5S is a lean manufacturing tool that can improve warehouse efficiency by systematically organizing and cleaning the workspace, as well as standardizing work practices and procedures. The system includes five guidelines (five S's) that can increase warehouse efficiency:
Visual communication is a key element for any lean warehouse management system. Labels and signs can be used to help organize the warehouse's storage system and provide essential information, while floor marking can be used to designate where tools, equipment, and supplies should be placed. This creates a visual map that helps workers quickly find and store supplies and tools.
Kanban is a "pull system." It pulls supplies to the warehouse floor based on what customers have ordered, as well as the work that has been completed. Kanban uses visual cards to control the workflow within a supply chain.
In a warehouse management system, Kanban can improve processing time by creating an orderly and consistent flow of materials from picking to packing and shipping. Picking stations receive materials in a timely manner because the supply department sends additional supplies when it receives a Kanban card, signaling that the picking station needs more supplies. Instead of providing materials based on a rough guess, materials are provided in the exact number that is needed. Orders cannot pile up in the packing area, and they cannot overwhelm the shipping area.
Kanban's pull system also helps reduce errors in processing because it limits work-in-progress. New work cannot start until the current job is completed and moved to the next workstation. If a worker at the packing station notices that the items do not match the order, the packing station does not receive additional orders until the problem is fixed. This helps workers identify issues and prevent errors from being repeated.
Not sure where to start? Duralabel offers a free 5S System Guide as well as an in-depth Best Practice Guide for Kanban that can help you apply lean principles to your warehouse management system. These guides break down how to apply lean principles in nearly any workplace.