Improving efficiency with lean warehousing and the power of warehouse management systems (WMS)

Better still, integrating lean warehouse practices with a warehouse management system (WMS) like Logiwa drives warehouse efficiency higher. Warehouse managers achieve more benefits, such as lower operational costs, enhanced employee morale, and increased productivity. This article discusses the principles and benefits of lean warehousing and how you can implement lean logistics strategies while using warehouse management systems.

What is lean warehousing?

Lean warehousing is the practice of applying lean manufacturing principles to warehouse management to minimize waste and enhance operational efficiency. It helps warehouse managers eliminate unproductive activities that consume time and resources but yield minimum output. 

To achieve lean warehousing, implement these 5S principles in warehousing.

1. Sort (Seiri): Eliminate unnecessary items to free up space

Warehouse inventory consists of multiple assorted items of all types. Some items become obsolete due to low customer demand, expanding your no-demand inventory. 

Sort, the first 5S principle, seeks to eliminate such unnecessary items by evaluating the saleability and market viability of products. Sort also assesses the utility of your warehouse tools and equipment, allowing you to discard unused tools. This way, you can get rid of all unused items and tools, and restore your slow-moving and no-demand inventory to a less busy storage space.

2. Set in Order (Seiton): Organize items based on usage frequency

Items such as seasonal products are used occasionally, while other daily-use items move fast. The Set in Order principle says you should store items in your warehouse according to their usage frequency. This means storing fast-moving products in easily accessible areas, such as the dispatch area and low-moving inventory in less frequently accessed areas, like the mezzanines.

3. Shine (Seiso): Maintain cleanliness to boost safety and efficiency

The warehouse floor is a hub of activities that can get messy and hazardous without proper management. And this is what the Shine principle prevents. Seiso asserts that adequately cleaning and organizing a warehouse enhances operational safety by promoting the free movement of warehouse personnel, equipment, and inventory. 

4. Standardize (Seiketsu): Ensure consistent procedures

The Standardize principle acknowledges that establishing standard operating procedures (SOPs) for warehouse operations is fundamental to maintaining operational efficiency. Warehouse managers should document operating procedures and establish labor standards for executing and completing each task. They should also train all warehouse staff to follow and accurately complete the established guidelines.

5. Sustain (Shitsuke): Commit to continuous improvement

The Sustain principle is about maintaining the initial four S standards. It fosters a culture of continuous improvement by conducting regular performance audits to pinpoint errors and fine-tune them. Regular audits also reveal areas needing improvement or course correction by applying new strategies. 

The Sustain principle also encourages continuous training and regularly commending warehouse staff who sustain high-performance standards. Applauding top-performing employees motivates them to advance standards and encourages other staffers to level up. Implementing the Sustain principle fosters a Kaizen culture throughout your warehouse operations. 

Implementing lean warehousing following the above 5S principles creates a streamlined, efficient, and safe warehouse environment. These are the essential ingredients for achieving optimum warehouse efficiency in the short and long term.

Benefits of lean warehousing

Top lean warehousing benefits include: 

Waste reduction and efficiency gains

Implementing lean warehouse practices solves the following warehouse wastes:

• Excess inventory: With lean warehousing, you stock only enough to satisfy projected demand, which helps you avoid overstocking. 
• Waiting times: All warehouse processes follow a schedule, thanks to the standard operating procedures established by lean principles. With streamlined processes, less or zero time is wasted between transitions.
• Unnecessary motion: Lean warehousing prevents motion waste by facilitating proper warehouse organization, so workers locate items quickly without downtime.
• Defects: With lean warehousing, the chances of making errors when packing or processing orders are minimal because all processes are streamlined. This provides an error-free fulfillment experience. 

Employee engagement and morale

Kaizen, a lean practice, fosters a collaborative culture where every employee is substantially involved in the continuous improvement of warehouse processes. It allows your warehouse employees to exchange ideas and information amongst themselves and with management. This way, every employee draws pride in the company’s success, boosting their morale to keep working. 

Safety and space optimization

Warehouse accidents such as falls, crush injuries, machinery accidents, and falling objects are all preventable through warehouse space optimization. Keeping your warehouse clean and organized reduces accident risks and helps you better allocate and utilize warehouse tools and equipment. You achieve this by implementing Shine, the third lean principle.

Sustainability and cost savings

The long-term financial benefits of lean warehousing include storage cost savings, wider profit margins thanks to increased operational efficiency, and fewer damage expenses. Integrating lean warehousing with innovative tech like artificial intelligence (AI) supports sustainable warehousing operations. AI-driven warehouse management strategies such as picking route optimization and AI job optimization enhance lean warehousing sustainability.

How Warehouse Management Systems (WMS) enable lean warehousing goals

Top warehouse management systems like Logiwa IO facilitate lean warehousing implementation in the following ways.

Enhanced visibility and control

WMS solutions leverage advanced tech such as machine learning, AI, analytics, and barcode scanners to collect crucial inventory data in real-time. Data from WMS gives you real-time visibility into locations, inventory levels, and order statuses. With this data, you get more control over your inventory, reducing unnecessary searching and handling of items when completing order fulfillment. 

Process automation

Automating warehouse processes is a big part of lean warehousing. You can leverage WMS automation capabilities such as warehouse space optimization, optimal picking path generation, and automating inventory counting. Process automation is a sure-fire strategy for ensuring adherence to standard operating procedures. Automation facilitates lean warehousing by elevating process accuracy and execution speed. 

Error reduction and quality control

The modern fulfillment industry has no room for errors, so much so that 81% of consumers will stop buying from a company after just one inaccurate order delivery. Fortunately, a reliable WMS like Logiwa error-proofs fulfillment processes by integrating real-time tracking, standardized workflows, and barcoding into warehouse processes. These features combine with automation technologies to streamline warehouse operations and reduce fulfillment errors. 

Data-driven decision-making

Warehouse managers must make data-driven decisions to facilitate continuous improvement in fulfillment operations. WMS analytics monitors key performance indicators such as lead time, picking accuracy, and order cycle time. By analyzing data from these KPIs, managers derive actionable insights they can leverage when designing Lean logistics strategies.

Implementing lean warehousing with WMS

To maximize lean warehousing benefits, you must initially set up your warehouse management system in line with lean principles. Follow these steps for success:

• Step 1: Distinguish the primary warehouse tools and processes from the secondary ones. This way, you know which warehouse assets to prioritize during integration and which are good candidates for warehouse process automation.
• Step 2: Organize your warehouse space to get the ideal layout that enhances inventory and warehouse equipment access. This streamlines inventory management in Lean warehousing, making retrieving products easy and fast when fulfilling orders.
• Step 3: Declutter the designated warehouse space so workers get a clean and accident-free working space. 
• Step 4: Design standardized and repeatable operational procedures and train your staff to execute them according to best practices.
• Step 5: Implement lean principles and perform regular performance audits to sustain and improve lean warehousing. 

Successful lean warehousing implementation isn’t a set-it-and-forget-it process, but a dynamic process that needs constant review and adjustments to enable continuous improvement. You achieve this by regularly auditing your WMS data.

Logiwa enhances the benefits of a lean warehouse approach

You cannot implement lean warehousing in isolation. Successful lean application includes deep integration with your warehouse management system. A reliable WMS fortifies lean warehousing success by facilitating operational efficiency, warehouse safety, employee satisfaction, and cost reduction. That’s why you should first find an innovative WMS and then begin implementing lean warehousing principles. 

Fortunately, Logiwa is the ideal WMS that ticks all your boxes regardless of your warehouse size. Contact Logiwa today and speak with Logiwa fulfillment specialists to evaluate your warehousing practices and consider how a Lean approach can transform your operations.
 

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