Warehouse Health Checks - What to Look For

At Logistics Bureau - Management Consultants, we spend a lot of time on 'Health Checks'. Here John Monck shares some tips on Warehouse Health Checks.
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TIMESTAMPS (in case you want to skip) 👇

0:00 Intro
1:04 Warehouse is Full
3:55 Mezzanine Floor Pros & Cons for Capacity
5:45 Mobile Robots
7:00 Process Improvement
8:36 Things to Look Out For Warehouse Efficiency
10:10 Warehouse Overall Layout Red Flags
12:43 Need Help?
13:05 Outro

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Here is a more comprehensive Warehouse Health Check 'check list'

Conducting a warehouse health check involves a comprehensive evaluation of various aspects to ensure optimal performance and efficiency. Here's a detailed approach to carrying out such an assessment:

1. **Inventory Management**:
- Check inventory accuracy and discrepancies.
- Review inventory turnover rates and carrying costs.
- Evaluate stock levels for overstocking or understocking issues.

2. **Warehouse Layout and Space Utilization**:
- Assess the effectiveness of the current layout for optimal flow of goods.
- Evaluate storage utilization and capacity.
- Check for any clutter or obstructions that hinder movement.

3. **Order Processing Efficiency**:
- Review the time taken from receiving an order to shipping it (order cycle time).
- Analyze picking accuracy and return rates.
- Assess the efficiency of order packing and shipping processes.

4. **Technology and Systems**:
- Evaluate the effectiveness of the Warehouse Management System (WMS) and other technological tools.
- Check for integration issues with other systems like ERP or supply chain management software.
- Review data accuracy and real-time tracking capabilities.

5. **Equipment and Maintenance**:
- Inspect warehouse equipment for functionality and safety.
- Review maintenance schedules and records for handling and storage equipment.
- Assess the adequacy and condition of material handling equipment.

6. **Safety and Compliance**:
- Conduct a thorough safety audit for potential hazards.
- Review compliance with OSHA and other relevant safety regulations.
- Check fire safety measures and emergency procedures.

7. **Labor and Workforce Efficiency**:
- Evaluate staff productivity and workload distribution.
- Assess training programs and skill levels of the workforce.
- Review labor costs against productivity.

8. **Supply Chain Integration**:
- Analyze the coordination between the warehouse and other parts of the supply chain.
- Assess lead times and reliability of inbound and outbound logistics.
- Evaluate communication and information flow with suppliers and customers.

9. **Customer Service and Satisfaction**:
- Review metrics related to order accuracy, return rates, and customer complaints.
- Assess the impact of warehouse operations on overall customer satisfaction.
- Evaluate feedback mechanisms for continuous improvement.

10. **Financial Performance**:
- Analyze the cost-effectiveness of warehouse operations.
- Review budget variances and identify areas of cost savings.
- Assess the financial impact of warehouse operations on overall business performance.

11. **Environmental and Sustainability Practices**:
- Evaluate waste management and recycling practices.
- Assess energy efficiency and carbon footprint of warehouse operations.
- Review compliance with environmental regulations and sustainability goals.

A thorough warehouse health check covering these areas will provide a comprehensive view of operational efficiency, safety, and overall effectiveness, guiding necessary improvements and optimizations.


#warehousemanagement #warehouseperformance #warehousekpi