9 Ways to Gain Efficiency in Warehouse Management

18196741_sAs with most businesses, efficiency can make the difference between profit and loss. In warehouse management, this is particularly true. The most resourceful warehouse operators use some or all of these techniques to stay ahead of the competition.

1.    Smart Layout

Successful warehouse operators have a carefully thought out plan for storage. It makes sense to store the most commonly picked items near the front of the area and items that are often sold together near one another. To ensure maximum utilization of available space, store items of a similar size and shape on the same racks. This prevents misplacing small items that slip behind large cartons, and allows the most consistent use of vertical space.

2.    Review the Layout Periodically

There are thousands of potential space and rack configurations for most warehouses, but there are only a few that allow maximum use of the available space. Since unfilled space rarely changes but product mix evolves over time, it makes sense to review your warehouse layout every one or two years to be certain it is still optimum for the current product mix. For example, many products get smaller in subsequent generations, but the space between shelves may still be utilized for the behemoths of early generations.

3.    Think Up

Before relegating popular items to the distant reaches of the warehouse, which could have an adverse impact on efficiency, consider using more of your vertical space. You might store overstock on high shelves to make space on lower shelves for more items near the front of the warehouse, for example.

4.    Standardize

Many people don’t realize how standardizing on bins, cases and shelves can improve the productivity of a warehouse. When material is stored consistently, it’s easier to find items or to put away items, Shelving can be set to the optimum distance for the standard bin sizes, for example, ensuring full use of the entire space. Standard packaging also makes it easier to find items when picking, improving organization and adding further to efficiency.

5.    Eliminate Non-Value Added Actions

The journey to lean consists of a relentless pursuit and elimination of waste. Examine all of your processes, at least annually, to ensure that unnecessary steps haven’t crept in. It also makes sense to review product mix to confirm that newly popular items are stored near the front rather than at a distance. If the warehouse is equipped with data collection, ensure there are enough stations and that they are positioned to make it easy to perform transaction entries. Check for shortages and open orders when material arrives, so the team doesn’t put it away and pick it again immediately.

6.    Training

People retain only a small percentage of the material they learn, and that percentage dwindles even further over time. While some people chafe at spending time on training warehouse personnel, the increased productivity that is gained when the team knows the best way to perform their duties can more than offset any lost time. Even long-term team members should undergo periodic refresher training. According to research published by Vanderbilt University, learning builds from previous knowledge. The more exposure learners have to information, the more of the information they will retain. A well-trained team is a proficient team, but that takes time and repetition.

7.    Sophisticated Picking Methods

Assuming they still get pick orders in batches, well-organized warehouses use wave or consolidated picking to eliminate the number of times warehouse personnel make the long trek to the back of the warehouse. By consolidating orders and picking for multiple orders on a single trip to a section or aisle, efficiency increases dramatically. Automated picking for routine products is the ultimate in efficiency.

Today, many warehouses receive pick orders in a continuous flow, which doesn’t lend itself to wave picking. These warehouses can still be effective by using streamlined business processes and working toward best practices for picking and storage.

8.    Eliminate Paper

Paper takes space; it gets lost; and it has to be printed, filed and stored. There is nothing resourceful — or green — about paper-based warehouse processes. Convert to electronic picking lists, radio-frequency (RF) devices and other paperless methods as often as possible.

9.    Consider Automation

Going through the above efficiency checklist is a great step towards improving overall profitability. For those operators still using manual systems, these steps are a great way to prepare for automation. Implementing an IT system to help with warehouse management doesn’t tell you what steps to do – it merely performs them with greater speed. Given the advanced capabilities and sophisticated planning options now available, you are really operating at a disadvantage without some sort of IT system today. Take the time to understand how your processes can work best before hiring an implementation team when considering this paperless option.


Efficiency is a combination of best practices, vigilance and common sense. Stay up to date on the newest material-handling techniques and equipment, and make sure to review all your practices and procedures frequently to ensure continuous improvement and a successful warehouse.


If you liked this article, here are others you might also find interesting:



Mike Kruggel


Latest posts by Mike Kruggel (see all)

10 Responses to “9 Ways to Gain Efficiency in Warehouse Management”

  1. cmiconsulting93@gmail.com'

    Chuck Intrieri

    Dear Mr. Kruggel:

    This is a well written warehouse article.

    I have the following to add:

    In any warehouse operation, Safety should be the top priority. Safety and OSHA is part of efficiencies as accidents cause down time and money.

    I’d add slotting and re-slotting to your picking efficiencies.

    # 5 should include Lean initiatives: Sure it takes a culture/behavior change to implement Lean, but it adds value to the customer by increasing though put and improving quality.

    I hope you agree with these comments.

    Thank you.

  2. mailtarasafe@gmail.com'


    Hi MR Kruggel,
    The content is great and have applied some of the points in our warehouse management.
    We are one of the leading manufacturer of FR clothing and has lot of stock on regular basis.

    Review the Layout Periodically.
    Sophisticated Picking Methods
    We worked on these factors and it has really helped us.

    FR Clothing, FR Coveralls, FR Jackets

  3. Make Your Huge Warehouse More Efficient by Following These 4 Tips - MyInkBlog

    You team up WMS (a warehouse management system) with asset tracking, you will be very pleased with the increased productivity in your warehouse.

  4. rebecca@bradfield-storage.co.uk'

    Rebecca Brockhouse

    A really good article and your point about a smart layout is, in my mind, one of the most important factors in running an efficient warehouse.

  5. J.R.Esquival@gmail.com'


    That’s a good tip to store the most commonly picked items near the front of the area. That way you won’t waste time in transit between items. I bet warehouses find the shortest paths for all their inventory.

  6. Raj.sharma12092017@gmail.com'

    Raj Sharma

    This article is really helpful for everyone who owns a warehouse. The idea of implementing smart layout is really great as there will be less wastage of time. Even one can make use of WMS to eliminate the paper work as its very time consuming and there occurs a risk as the paper may get lost.

  7. amandahayak@gmail.com'

    Amanda Hayak

    Thank you so much, Mike, for the valuable information shared in the article. Gaining Efficiency in Warehouse Management will be very much profitable for the business organization in all aspects.

  8. social.account@holisollogistics.com'

    warehousing solution

    The points mentioned above provides are indeed necessary to bring efficiency of warehouses but along with this the size of warehouses also matters. When organizing your warehouse, make sure to set hard and fast boundaries for each zone to make the most of your space and prevent any needed operations from getting crowded out.

  9. sophiasilva1234@mail.com'

    Sophia silva

    I agree that smart layout could extend the storage capacity of the warehouse and also ensure better productivity. By adopting better design, we could make sure better utilization of available space. Use of damaged or weaker components in the warehouse could lead to accident which causes product loss. So, the condition of different components used in the warehouse needs to be inspected at a regular interval and damaged components should be replaced with suitable substitutes. Apart from this, introduction of automation in the warehouse could enhance the product flow in the warehouse.

  10. 50 Expert Tips on How to Organize Your Warehouse More Efficiently - Joomla Import

    […] so the team doesn’t put it away and pick it again immediately.” – Mike Kruggel, 9 Ways to Gain Efficiency in Warehouse Management, DELMIA Apriso; […]


Leave a Reply