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Accuracy
Efficiency
Accountability
Warehouse Manager
Job Description: Typical Responsibilities
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Using real-time data collection to increase accuracy and lower labour costs.
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Manage systems and softwares
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Inspecting and approving the quality and quantity of goods or equipment received and shipped out
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Enforcing company rules and regulations
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Enforcing health standards, safety and security procedures
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Managing staff, building teams, training employees and monitoring production performance
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Communicating and interacting with clients, vendors, suppliers and customers
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Overseeing logistics of receiving, warehousing and dispatch operations
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Meeting regularly with warehouse leads to assess, analyse and develop actionable plans for loss prevention and productivity.
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Performing general maintenance of the machinery used in the warehouse
Top 3 warehouse trade-offs
Successfully managing trade-offs in the warehouse is an essential part of a manager's duties. In the current dynamic and rapidly changing environment, the challenges encountered are both varied and plentiful. These complexities require warehouse managers to not only adapt but also enhance their skill sets to effectively address issues like inventory control, resource distribution, and operational efficiency. By refining these abilities, warehouse managers can facilitate seamless operations and play a significant role in the organization's overall success.
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The warehouse manager’s challenges
Pressure on today’s warehouse manager comes from many different directions. These are both internal and external pressures. A recent survey carried out by Intermec suggested the following (the survey base of 250 supply chain, warehouse and distribution managers):
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Over an eight hour shift each worker loses an average of 15 minutes of productivity in an inefficient process (x 8 hours x 5 days...).
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80 % of managers have been tasked with finding cost savings in existing operations.
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On average managers have been tasked with finding nearly 20 % cost savings across their organizations.
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The majority of managers suggested the following areas were most inefficient:
–– inventory control (53 %);
–– picking (47 %);
–– putaway and replenishment (45 %).
One surprising fact that came out of the survey was that one in six managers will not review their workflow processes until they receive a customer complaint (Intermec 2012 survey base of 250 supply chain, warehouse and distribution managers).
Cost reduction
Companies are focusing on the supply chain as a key area for cost reduction, putting additional pressure on transport and warehouse managers to lower expenses and enhance customer service. As a result, businesses are exploring outsourcing options and reevaluating their logistics operations.
Delivery through multiple channels
Companies are increasingly utilizing multiple channels to connect with customers more effectively. This places additional pressure on warehouses, which adapt to present goods in various formats. These formats include direct delivery of individual items to consumers, multiple SKU orders sent directly to stores, and bulk shipments to retail distribution centers. Each of these scenarios has unique picking requirements and may depend on different types of equipment, with varying order lead times and delivery methods.
Labour cost and availability
Working in a warehouse is often not viewed as a glamorous occupation, which makes it challenging for warehouse managers and HR departments to find and keep employees. They face significant efforts to attract skilled workers and ensure they part of the team.
Many workforces have been supplemented with the introduction of staff from abroad.
Numerous companies have strengthened their teams by bringing in international staff. Today, flexible working hours, private health insurance, and paid overtime are crucial factors that attract potential employees.
Achieving the perfect order
A perfect order is characterized by being delivered on time, in full, in excellent condition, and accompanied by the correct documentation. This metric covers several existing supply chain performance measures, as long as all parties follow the same criteria. The success of this implementation largely depends on staff training and the establishment of effective procedures and processes.
Smaller, more frequent orders
Manufacturers and retailers are constantly working to minimize inventory, while retail stores aim to expand their sales floor space and decrease the stored in stock rooms. Methods like just-in-time inventory, the rise of online sales, and strategies such as efficient consumer response (ECR) and quick response (QR) are leading to smaller, more frequent orders. This shift requires adjustments in warehouse operations, moving from full-pallet picking to picking cartons and individual items.
Environmental issues
Warehouse managers play a crucial role in not only achieving cost savings but also in reducing the environmental impact of the warehouse. This includes overseeing energy consumption related to lighting, mechanical handling equipment (MHE), heating, and cooling systems. Managers should set a positive example by switching off lights and heaters when not in use and ensuring MHE operates at peak efficiency. Furthermore, effective waste management is an important environmental issue, as warehouses generate considerable waste from materials such as wrap, cardboard, tape, and pallets. It is vital to monitor this waste closely and, possible, recycle, reuse, or convert it energy.
Shorter order lead times and stock availability
Order lead time is the length of time between the placing of an order and the receipt of the item by the customer. Order lead time can be a significant differentiator between competitors. The most effective warehouses are those that have reduced lead times whilst maintaining quality at a reduced cost.
Greater fluctuations in demand
The time of predictable sales is over, with consumers now driving the marketplace. Seasonality still impacts sectors such retail, e-commerce agriculture, and energy. Companies need to be ready to boost resources during peak periods while keeping operations lean during slower times.
Data and information transfer
One of the biggest challenges faced by warehouse managers is managing data.
The modern supply chain generates enormous amounts of information, and it's the warehouse manager's responsibility, among others, to analyze and utilize this data effectively. Another significant challenge is ensuring that data is sent to the right locations. It's often said that supply chains revolve around transfer of information, with products being a secondary concern. In sectors like food and pharmaceuticals, the ability to items throughout the supply chain is crucial.
Tips and Tricks #1
Lean warehousing
One way of overcoming some of the above challenges is the introduction of ‘lean’ concepts into the warehouse operation.
The concept of ‘lean’ comes from the manufacturing sector, more specifically the automotive industry, and is very much associated with Toyota and the Toyota Way. Lean principles are increasingly being adopted across various sectors, including the public sector and supply chains, in addition to manufacturing. The fundamental concept of lean is to eliminate activities that consume resources without contributing value. In this section, we will examine the application of lean principles within warehouse operations. This is where lean techniques can significantly enhance operational effectiveness in a warehouse environment.
Identifying activities within the warehouse that consume resources without adding value is essential. Typically, lean methodology is implemented by Headquarters, Continuous Improvement departments, or logistics teams in larger companies. Smaller businesses may benefit from hiring a warehouse consultant to enhance their operations.