loading pallet onto a truck
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Warehouse Cross Docking: Tips and Best Practices for Increased Warehouse Efficiency

If you’re running a warehouse or distribution center, then you know that efficiency is key. Every minute counts when it comes to getting products out the door and onto store shelves. That’s why many warehouses are turning to cross docking as a way to improve their operations.

In this article, we will discuss what warehouse cross docking is and how it can benefit your business. We’ll also take a look at some of the pros and cons of using this shipping method. Furthermore, we’ll provide some tips and best practices for implementing cross docking with the help of Logimax WMS software.

What is Warehouse Cross Docking?

Cross docking is a shipping method in which products are unloaded from inbound trucks and loaded directly onto outbound trucks, without being stored in the warehouse.

This can help to save time and improve efficiency, since in cross docking warehouses, there is no need to put away incoming shipments or pick and pack orders for outgoing shipments.

When is Cross Docking Used?

Cross docking is most commonly used for products that have a short shelf life or are time-sensitive. This includes items such as fresh produce, flowers, and medications. It can also be used for high-demand products that need to be shipped out as soon as they arrive in the warehouse.

What is a Cross Docking Warehouse?

A cross docking warehouse is a type of facility where inbound and outbound shipments are exchanged, or “cross docked.” This exchange takes place without the need to store products in the warehouse. Even though items aren’t being stored, you will still need an enclosed facility with a loading dock to safely cross dock the goods.

What Type of Companies Can Benefit From a Cross Docking System?

Cross docking can be beneficial for a variety of companies across the supply chain, including:

  • Captive warehouses (company-owned or private)
  • Third-party logistics (3PL) providers
  • Distribution centers (DCs)

If your company falls into one of these categories, then cross docking may be a good option for you. However, it’s important to keep in mind that this shipping method may not be right for every situation.

Benefits of Cross Docking: More Than Cost Savings

There are many advantages of cross docking in supply chain management and warehousing, including:

unloading a pallet from a truck
  • Improved efficiency: By eliminating the need to store and then retrieve products, cross docking can help to improve your overall warehouse operations. This can lead to shorter shipping times and lower costs.
  • Increased accuracy: When products are not stored in the warehouse, there is less chance for them to be misplaced or damaged. This can lead to increased accuracy and fewer mistakes.
  • Faster turnaround time: By eliminating the need to store products in the warehouse, cross docking can help to reduce the overall turnaround time for orders. This is because products can be loaded directly onto outbound trucks as soon as they arrive, without having to wait for them to be picked and packed.
  • Reduced labor requirements: If you are not storing products in the warehouse, you will need fewer workers to perform tasks such as receiving, put-away, and picking. This can lead to significant labor savings.
  • Improved inventory management: Cross docking can help you to better manage your inventory levels, as you will always know what products are coming in and going out of the warehouse. This can help you to avoid stock-outs and overages.

Potential Drawbacks of Cross Docking:

Cross docking can be a great way to improve your warehouse operations. However, there are some potential drawbacks to using this shipping method. These include:

  • Limited product storage: If you are not storing products in the warehouse, you will have limited storage space for seasonal or overstock items. This could lead to higher inventory costs.
  • Increased shipping and transportation costs: Cross docking can sometimes result in increased shipping costs, as you may need to use more trucks or ship products more frequently.
  • Requires coordination: A cross dock strategy requires close coordination between the warehouse and the trucking company. If there is a delay in receiving shipments or an issue with the trucking company, it can impact your warehouse operations.

How to Implement a Cross Docking Strategy in Your Warehouse

If you’ve decided that cross docking is the right shipping method for your warehouse, there are a few things you need to do to get started.

warehouse receiving area

First, you will need to develop a cross docking plan. This should include detailed instructions on how products will flow through the warehouse.

Next, you will need to train your employees on the new procedures. This is important to ensure that everyone understands their roles and responsibilities.

Finally, you will need to implement a tracking system to monitor shipments and ensure that products are being moved through the warehouse efficiently.

How a WMS Can Help With Cross Docking

A good warehouse management system (WMS) such as Logimax WMS for 3PL and Distribution can help to improve the efficiency of your cross docking operations. Logimax WMS together with our Cross Docking Module can be used to track inbound and outbound shipments, schedule dock doors, and route products to the appropriate locations.

By using Logimax WMS, businesses can reduce lead times and create satisfied customers.

Expanded Tips for Setting Up a Cross Docking Operation

There are many factors to consider when setting up a cross docking operation. Here are some of the steps to take into account:

  • Determine what type of cross dock operation you need: inbound, outbound, or both.
  • Identify your suppliers and customers and their shipping schedules.
  • Identify the products that will be handled by the cross dock operation.
  • Calculate the number of docks you will need based on the volume of shipments.
  • Designate a receiving area for inbound shipments and a shipping area for outbound shipments.
  • Develop a plan for how products will move through the warehouse.
  • Develop processes and procedures for receiving, shipping, and handling damaged goods.
  • Train your employees on the new procedures.
  • Create a tracking system to monitor shipments and transport vehicles to ensure efficient operations.
  • Determine the receiving and shipping schedules for each product.
  • Implement quality control measures to ensure accuracy and efficiency.

By following these tips, you can set up a cross docking operation that will help your warehouse run more efficiently.

Cross Docking Best Practices

Here are a few reminders of best practices if you’re considering using cross docking in your warehouse:

  • Plan ahead: Cross docking requires careful planning and coordination. You will need to know what products are arriving and when they are scheduled to arrive. This information should be communicated to your outbound shipping team so that they can be prepared.
  • Stay organized: Cross docking can be a complex process, so it’s important to stay organized. Keep track of incoming and outgoing shipments, and make sure that all orders are processed in a timely manner.
  • Communicate with your team: This strategy requires close communication between the inbound and outbound shipping teams. Make sure that everyone is on the same page and knows what needs to be done.
loading boxes into a van

Conclusion

Cross docking is growing in popularity as a shipping method that can increase warehouse and supply chain efficiency. By carefully planning and coordinating shipments, you can reduce lead times and improve customer satisfaction.

Keep in mind, for a successful cross docking operation, a good warehouse management system is essential.

Logimax WMS is a comprehensive software solution that helps businesses streamline their warehouse and distribution operations. Our software is designed to increase efficiency, improve accuracy, and reduce costs. For more information about Logimax WMS, please visit our website or contact us today.

FAQs

Is a Cross Dock Warehouse Set Up Different Than a Normal Warehouse Facility?

Yes, a cross dock warehouse is typically set up differently than a traditional warehousing facility. The main difference is that cross dock warehouses are designed to have products come in and ship out on the same day or within a very short time frame. This means that there is no need to store products in the warehouse for any length of time.

How Does Cross Docking Reduce Storage and Handling Costs?

Cross docking reduces storage and handling costs by eliminating the need to store products in the warehouse for any length of time. This means that products only spend a minimal amount of time in the warehouse, which reduces the need for extra warehouse space and labor. It also eliminates the need to handle products multiple times, which further reduces labor costs.

What Industries Use Cross Docking?

Warehouse cross docking is used in a variety of industries including retail, manufacturing, logistics, and distribution.

Explain How Cross Docking Works

Cross docking typically involves three parties: the supplier, the customer, and the warehouse. The supplier ships products to the warehouse, where they are sorted and then shipped to the customer. The products never enter into inventory or are stored like in traditional warehousing.

What is the difference Between Cross Docking and Transit Storage?

The main difference between cross docking and transit storage is that cross docking involves the sorting and shipping of products on the same day or within a very short time frame.

Transit storage, on the other hand, involves storing products in a warehouse for an extended period of time.

What Are Some Advantages of Cross Docking in Supply Chain Management?

There are many advantages of cross docking in supply chain management. It can help improve inventory management and reduce lead times and storage & handling costs. Cross docking can also improve customer satisfaction by reducing the shipping time within the supply chain.

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Warehouse Inventory Accuracy: Why it Matters and How to Improve It

Inventory accuracy is one of the most important aspects of warehouse management when it comes to supply chain businesses. It can be the difference between making a profit and losing money on your inventory. Unfortunately, many businesses struggle with maintaining accurate inventories. In this blog post, we will discuss why order picking accuracy matters and how to improve your inventory processes in your warehouse. We will also discuss some of the common reasons businesses fail at inventory accuracy and how Logimax WMS can help you overcome these challenges.

What is Inventory Accuracy?

Inventory accuracy is the degree to which a warehouse’s inventory records match its actual on-hand quantities. In other words, it’s how accurately your warehouse knows what items you have in stock and where they are located. This is important because the more accurate your inventory records, the better you can manage and control your inventory.

Top Reasons Why Inventory Accuracy Matters

Inventory accuracy is critical for warehouses, regardless of their size or type. Here are some of the top reasons why it matters:

Improving Order Accuracy:

One of the most important reasons why inventory accuracy matters is that it ensures that your customer orders are fulfilled accurately. If you don’t have accurate information about what items are in stock and where they are located, then there’s a good chance that you won’t be able to fulfill orders correctly. This can lead to unhappy customers and lost sales.

Prevent Inventory Loss and Shrinkage:

Inventory shrinkage is the loss of inventory due to theft, damage, fraud, or errors. This includes losses due to incorrect counts, errors in recording quantities, or intentional theft. If you don’t have an accurate count of the items in your warehouse, then it’s possible that some of them may be misplaced or stolen without your knowledge. This can quickly add up to significant losses for your business.

Maintaining correct inventory records will help you better identify any discrepancies and prevent losses due to shrinkage.

Reduce Costs:

Inventory accuracy can also help you save money in the long run by reducing costs associated with overstocking and understocking items. If your warehouse has too much of an item, then you’re spending unnecessary money on storage costs. On the other hand, if you don’t have enough of an item then your clients could lose out on potential sales.

Accuracy also has an impact on labor costs. Not having accurate records of your inventory means wasted time searching for products and making sure the right items are in the right places.

Keep Accurate Inventory Valuation:

Inventory accuracy also helps you keep an accurate inventory valuation. This is important because it helps you ensure that your financials are in order and that you’re not overvaluing or undervaluing an item. This is especially important when tax season rolls around and you need to accurately report your inventory values.

Real Inventory vs. Electronic Inventory Records

It’s important to note that in the real world, inventory and electronic inventory records don’t always match up. Real inventory refers to the physical stock that is stored in a warehouse. This includes all items such as raw materials, semi-finished goods, and finished products. Electronic records of inventory are digital databases or spreadsheets that track the movements of these real inventory items.

There are many reasons why these two types of information may not match up. Physical goods can get moved around, get lost or damaged, or even stolen without the warehouse manager knowing about it.

These discrepancies between real and electronic inventory can lead to false inventory records, which can have a serious impact on your business.

Common Causes of Poor Inventory Accuracy

We mentioned that inaccurate inventory records can lead to a number of problems, from lost sales and unhappy customers to increased labor costs and inventory shrinkage. But what causes these discrepancies in the first place?

Let’s dive in and gain a thorough understanding of why inventory accuracy can be so hard to maintain.

Data Entry Errors

One of the most common causes of poor inventory accuracy is data entry errors. This can be caused by user errors, such as typos or incorrect data entry, or system errors, such as faulty coding. It’s important to check data entries regularly and ensure accuracy before it affects your overall inventory accuracy.

Manual Processes

Errors are especially prone to occur when manual processes are used for recording stock movements, such as when a paper-based system is used to track inventory. This can be due to a lack of automation, or simply because the staff involved in the process don’t have enough knowledge or experience to properly record and track stock.

Human Error

As we’ve mentioned, human error can be a major cause of inventory inaccuracy. To prevent errors, it’s important to train employees on proper inventory procedures and ensure that all processes are followed correctly. Your WMS should provide an intuitive user interface that makes it easy for users to operate the system without any confusion.

Poor Stock Management

Poor stock management is another common cause of inaccurate records. This can include failing to keep track of inventory levels, not properly training staff on how to handle stock movements, or simply not having the right systems in place for tracking and recording inventory.

Obsolete Inventory

Obsolete inventory is another cause of inaccurate records. This can occur when outdated items are stored in warehouses without being marked as such, leading to confusion over whether or not they should be included in your recorded inventory.

Incorrect Counts

Incorrect counts are another common cause of inaccurate records. This can occur when physical stock levels don’t match up with the electronic records, leading to discrepancies between real and digital inventories.

Poor Record Keeping

One of the most common causes of poor inventory accuracy is poor record keeping. Accurate records are essential for maintaining inventory accuracy, so it’s important to make sure that all transactions are recorded correctly and promptly.

Theft

Theft is another major cause of inventory inaccuracy. To prevent theft, it’s important to have a secure system in place that tracks and monitors all inventory movements within the warehouse. Leading WMS software solutions provide robust security features that help reduce the risk of theft in your warehouse. Additionally, it’s important to install video surveillance and monitoring capabilities, which can help you keep an eye on inventory at all times.

Unreliable Tracking Systems

If your warehouse is using outdated or unreliable tracking systems, it can lead to inaccurate inventory counts. It’s important to invest in a modern, integrated system such as Logimax WMS that provides accurate and reliable tracking capabilities.

Inadequate Training

Improper training of staff can also result in poor inventory accuracy. It’s important to ensure that all employees are adequately trained on the inventory control process and warehouse management system before they begin their duties. Leading WMS systems should provide comprehensive training materials and an intuitive user interface so your staff can quickly get up to speed with the system.

Equipment Failure

Equipment failure can also lead to inventory inaccuracies. It’s important to ensure that all equipment is regularly maintained and kept in good working order to reduce the risk of breakdowns or malfunctions. Regular maintenance checks should be performed on any warehousing equipment to keep it functioning correctly.

Systematic Issues

Systematic issues can also cause poor inventory accuracy. This could include an outdated system, a lack of proper procedures, or incorrect data entry. It’s important to identify any systematic issues and address them promptly to improve your overall inventory accuracy. Your WMS should provide detailed reports and analytics that help you identify any systemic errors quickly and address them before they have an impact on your inventory accuracy.

Maintaining accurate inventory records is essential for the success of any business. By understanding the common causes of inaccurate records, you can take steps to ensure that your inventory data is always up-to-date and accurate. This will help you avoid potential losses due to shrinkage or errors in recording quantities, as well as keep inventory accuracy for valuation for tax purposes.

How to Improve Inventory Accuracy:

Now that we’ve discussed the main causes of inventory inaccuracy, let’s talk about how to improve accuracy in your warehouse. There are several important steps you can take to ensure accurate inventory counts, including:

Establish Clear Inventory Control Policies & Procedures

It’s essential to establish clear policies and procedures for managing inventory in your warehouse. This should include proper data entry protocols, tracking systems, training materials, and security protocols. Taking the time to develop these processes and ensure that all employees are aware of them is key to achieving accurate inventory counts in your warehouse.

scanning warehouse box

Invest in Robust Tracking Systems

Having a reliable and accurate tracking system is essential for improving inventory accuracy. Investing in modern, integrated systems such as RF and barcoding can help you track and monitor all of your inventory movements with ease. This will also reduce the risk of human error when it comes to data entry.

Utilize Technology to Automate Processes

Automation can also help you improve inventory order picking accuracy. Automating mundane tasks such as data entry or order fulfillment can reduce the risk of human error and free up staff for more important tasks. Automation can also improve accuracy by removing the need for manual data entry, giving you greater control over your inventory numbers.

Train Staff on Proper Order Picking Processes

Ensuring that all employees are adequately trained on the inventory management and control process and warehouse management system can go a long way in improving accuracy. Provide comprehensive training materials, give staff ample opportunities to practice, and make sure they understand best practices for operating the system and performing inventory counts. The necessary tools and resources will help reduce errors and improve accuracy.

Regularly Maintain Equipment

It’s important to regularly maintain all warehouse equipment and keep it in good working order. This should include anything from automated systems to manual tools, as any malfunctions can lead to inaccurate inventory counts.

Review & Analyze Data Regularly

It’s essential to review and analyze your data on a regular basis to ensure accuracy. This includes data entry errors, systematic issues, and any other discrepancies. Logimax WMS provides detailed reports and analytics that make it easy to identify any inventory inaccuracies quickly so they can be addressed promptly.

Develop Inventory Control Policies and Procedures

Ensuring that your warehouse has clear and consistent inventory management and control policies and procedures is essential for improving accuracy. These should include best practices for data entry, tracking systems, security protocols, and training materials. Taking the time to develop these procedures will ensure that all employees are aware of them, reducing errors in the inventory management process.

Implement Barcoding

It should go without saying, but implementing a barcoding system can help you improve accuracy in your warehouse. Barcodes are quick, easy to use, and provide an efficient way to track and manage inventory. This can help reduce the risk of human error, as well as provide an additional layer of security for your warehouse operations. If you run a small operation and haven’t yet implemented barcoding, now is the time to do so!

Implement a Warehouse Management System (WMS)

A best-of-breed Warehouse Management System (WMS) can help you automate processes and streamline inventory management. A WMS can also provide you with real-time data, analytics, and reports to help you identify any inventory discrepancies quickly. This can go a long way toward improving inventory accuracy in your warehouse.

WMS vs. IMS (Inventory Management System)

Many people confuse the terms WMS and IMS. While they have some similarities, they are two distinct types of software. An Inventory Management System (IMS) is designed specifically for inventory management, while a Warehouse Management System (WMS) offers an end-to-end solution that focuses on warehouse operations as a whole.

Achieve Accurate Inventory with Logimax Warehouse Management Software

Logimax WMS provides comprehensive features and best-in-class inventory tracking capabilities to help you improve accuracy in your warehouse. With Logimax WMS, you can stay on top of your inventory at all times and ensure that you always have the right stock levels. Our real-time data, analytics, and reporting features make it easy to identify any discrepancies quickly and take corrective action right away. Our software also makes having a separate inventory management system redundant since it provides all of the features and more that an IMS offers.

The Inventory Accuracy Formula

Inventory accuracy is an important metric for measuring the effectiveness of your inventory management processes. It’s typically expressed as a percentage, with 100% being perfectly accurate. Calculating inventory accuracy requires taking the number of items accurately counted and dividing it by the total number of items in your warehouse. This will give you an idea of how accurately your inventory is being tracked.

For example, if you have 1000 items in your warehouse and 900 of them are accurately counted, then your inventory accuracy would be 90%.

What’s a good inventory accuracy rate?

A good inventory accuracy rate is typically considered to be 97% or higher. Anything lower than that could result in problems such as stockouts, excess inventory, inaccurate financial records, and customer dissatisfaction.

Calculate Inventory Accuracy with Physical Counts

Physical counts are an important part of inventory accuracy. They allow you to compare what’s actually in your warehouse against what’s being tracked in your system. This can help you identify discrepancies and take corrective action if necessary.

When conducting physical counts, it’s important to have clear guidelines and processes in place to ensure accuracy. This should include having designated staff members who are responsible for counting, as well as a system for tracking and verifying the counts. Examples of how to perform physical inventory counts include implementing a cycle counting program and full-stock counting.

Calculate Inventory Accuracy by Inventory Valuation

In addition to physical counts, you can also calculate inventory accuracy using inventory valuation. This involves comparing the value of your stock on hand with the value of your system’s records. If there’s a discrepancy, it could be an indication that something is not being tracked accurately.

Conclusion

The ability to maintain inventory accuracy is essential for running any warehouse operation. It’s important to have a clear understanding of best practices, as well as the right tools and resources in place to ensure accuracy. Having a best-in-class Warehouse Management System (WMS) like Logimax WMS can help you achieve that without investing in multiple systems such as a WMS and an IMS. By leveraging our real-time data, analytics, and reporting features, you can greatly enhance your inventory accuracy measures. Thereby staying on top of your inventory at all times and ensuring that everything is accurately tracked.

With Logimax WMS, you can rest assured that your inventory accuracy is at its best. Contact us today to learn more.

warehouse inventory management - moving boxes
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How to Improve Warehouse Inventory Management: Tips and Best Practices

If you’re running a warehouse, then inventory management is sure to be one of your top priorities. After all, if you can’t keep track of what you have and where it’s located, then you can’t efficiently manage your stock. Fortunately, there are a number of ways to improve your inventory management process.

In this guide, we’ll explore some of the best practices and tips for managing warehouse inventory effectively. We’ll also introduce Logimax WMS, a warehouse and inventory management software that can automate and streamline many of the tasks involved in warehouse inventory management.

What is Warehouse Inventory Management and What Are its Benefits?

Warehouse inventory management is the process of organizing and tracking inventory levels, order fulfillment, and stock locations in a warehouse. By streamlining these operations, businesses can improve their overall efficiency and better utilize their warehouse space. In turn, this can lead to cost savings and improved customer satisfaction.

Some of the specific benefits that can be gained from implementing a system to manage inventory include reduced labor costs, shorter lead times, and lower inventory levels.

Additionally, a well-run warehouse can provide a competitive advantage by allowing businesses to respond quickly to changes in customer demand. As such, warehouse inventory management is an essential part of any business that relies on maintaining an inventory of goods.

What is a Warehouse Inventory Management System?

A warehouse inventory management system is a software application that helps businesses do the things mentioned above – track and manage their inventory levels, stock locations, and order fulfillment. These systems can also generate reports that provide insights into warehouse operations and help businesses improve their overall efficiency.

There are a variety of different systems for managing inventory on the market, each with its own unique features and pricing. Some software systems are focused strictly on managing inventory, while others are designed to manage the entire warehouse operation.

Inventory Management System (IMS) vs. Warehouse Management System (WMS)

An inventory management system (IMS) is a software application specifically built to help businesses track and manage their inventory levels. Whereas, a warehouse management system (WMS) is a software application that helps businesses track and manage a wide range of warehouse operations, including receiving, order fulfillment, reporting, and much more.

While inventory management systems can be helpful for managing inventory levels, warehouse management systems offer a more comprehensive solution for warehouse management. As such, a WMS is typically a better choice for businesses that rely heavily on their warehouse operations.

Logimax WMS offers all of the features and functionality of a warehouse management system, as well as a number of features specifically designed for managing inventory.

checking warehouse reporting on tablet

Best Practices for Warehouse Inventory Management: The Basics

There are a few basic best practices that every warehouse should follow in order to improve inventory management. Here are some of the most important:

1. Invest in Warehouse Management Software

Warehouse management software, like Logimax WMS, can automate many of the tasks involved in warehouse inventory management, from tracking stock levels to placing orders. This software can also generate reports that will help you optimize your inventory levels and improve your overall warehouse efficiency.

2. Keep Track of Your Stock Levels

After implementing a warehouse management system, the next step to effective inventory management is knowing what you have in stock and where it’s located.

One option is to use an inventory management software like Logimax WMS. Our software can help you track your stock levels in real-time, so you always know what you have on hand. For best results, use our system together with barcodes and RFID tags to keep track of your inventory.

3. Use FIFO Inventory Management

When it comes to managing your warehouse inventory, it’s essential to use a system that will help you keep track of your stock levels and ensure that you’re using your space efficiently. The FIFO (first in, first out) method is one of the most popular and effective inventory management systems.

With the FIFO system, you’ll always ship or sell the oldest items in your inventory first. This ensures that your products are always fresh and reduces the risk of them expiring before they’re sold.

4. Conduct Regular Inventory Counts

It’s important to conduct regular inventory counts to ensure that your stock levels are accurate. This can be a time-consuming task, but it’s essential to maintaining effective control over your inventory.

Inventory counts can be conducted manually or with the help of an inventory management software like Logimax WMS. If you choose to conduct manual inventory counts, be sure to schedule them at regular intervals and plan for them in advance.

Additionally, cycle counting is a method of inventory management that involves counting a subset of your inventory regularly, instead of counting everything at once. This can help to reduce the time and effort required to conduct a full inventory count.

5. Set Clear Processes and Procedures

In order to effectively manage your warehouse inventory, it’s important to have well-defined processes and procedures in place. These should be designed to help you track your inventory levels, keep your stock organized, and minimize the risk of errors.

Some of the key processes and procedures that you should put in place include:

  • Creating a system for receiving and storing new inventory.
  • Tracking inventory levels and reordering stock when necessary.
  • Organizing your inventory so that it’s easy to find items when needed.
  • Conducting regular inventory counts.

6. Regularly Review Your Inventory

It’s important to regularly review inventory management systems to ensure they are optimized. This will help you to identify any areas where improvements can be made.

Doing a review also allows you to adapt to changes in your business, such as an increase in the number of products you’re stocking or a change in your storage capacity.

7. Invest in Ongoing Training for Your Staff

In order to effectively manage your warehouse inventory, it’s important that your staff are properly trained. They should understand how your inventory system works and be familiar with the procedures that need to be followed.

Investing in ongoing training will help to ensure that they’re able to carry out their tasks efficiently and effectively. It will also help to reduce the risk of errors being made.

8. Implement Safety Measures

It’s important to implement safety measures to prevent accidents as well as to protect your inventory from damage or theft. Some of the safety measures that you should put in place include:

  • Using proper lifting techniques to avoid injuries.
  • Storing hazardous materials safely.
  • Securing your inventory with locks and alarms.
  • Making sure that only authorized personnel have access to your inventory.
  • Installing security cameras, alarms, locks, gates.

9. Use Quality Control Methods

Using quality control methods can help to ensure that your inventory is in good condition and fit for sale. This can include inspecting items when they’re received, conducting regular inventory counts, and using barcodes and RFID tags to track your inventory.

looking at tablet - warehouse analytics

Tips for Improving Warehouse Inventory Efficiency

There are a number of ways to improve inventory efficiency in a warehouse setting, including:

  1. Streamline Receiving: This can be done by implementing a system wherein all incoming shipments are logged and tracked. This will allow warehouse staff to quickly and easily locate any specific item that may be needed.
  2. Improve Organization: This means creating a system that logically arranges items in the warehouse so that they can be easily found when needed. This can be done through the use of shelves, bins, and labels. By taking the time to organize the warehouse properly, staff will be able to save time when looking for specific items.
  3. Keep an Accurate Inventory: This can be done through the use of barcodes or RFID tags. Using these tags, you  can track items as they move through the warehouse, and they can also be used to locate items that may have been misplaced. By taking the time to implement these tracking methods, warehouses can ensure that their inventory is always accurate and up-to-date.

Tips for Organizing Your Warehouse Space

Proper warehouse inventory management requires careful consideration of how your warehouse space is being used. There are a number of ways to optimize your warehouse space, including:

  • Utilize vertical space as much as possible. This can be done by installing shelving units and racks that extend to the ceiling.
  • Group similar items together in one area to make it easier to find what you need.
  • Label all shelves and bins clearly so that everyone knows where things are supposed to go.

Tips for Handling Seasonal Changes and Unexpected Increases in Demand

As a supply chain business or manufacturer, you are responsible for ensuring that products are delivered on time and in good condition. This can be a challenge at the best of times, but it can be especially difficult during seasonal changes or periods of unexpectedly high demand.

Here are some tips to help you navigate these challenges:

  • Communicate early and often with your clients. They will need to be aware of any potential delays so that they can make alternate arrangements if necessary.
  • Have a contingency plan in place for when things go wrong. This might include partnering with another 3PL who can pick up the slack if you are unable to meet demand.
  • Be flexible and adaptable. Things rarely go according to plan, so being able to adjust on the fly is essential.

By following these tips, you will be better prepared to handle whatever challenges come your way.

Tips on How to Deal with Damaged or Defective Products

As any supply chain manager knows, damage and defects are an inevitable part of doing business. Whether it’s a carton that’s been crushed in transit or a product that didn’t meet quality standards, dealing with damaged goods is just part of the job.

Here are some tips on how warehouses can best deal with damaged or defective products:

1. Invest in Quality Control

One of the best ways to deal with damaged goods is to prevent them from happening in the first place. That’s why it’s important to invest in quality control measures. By conducting regular inspections and audits, businesses can identify potential areas of improvement and take steps to prevent damage from happening.

2. Have a Clear Returns Policy

When customers receive damaged goods, they usually want to return them for a refund or exchange. That’s why it’s important to have a clear returns policy in place. This policy should outline how customers can return damaged goods and what they can expect in terms of refunds or replacements.

3. Keep Good Records

When damage does occur, it’s important to document it thoroughly. This documentation will be used to file insurance claims and help businesses track trends over time.

How to Choose the Right Inventory Management Software

There are a few key factors to consider when choosing a warehouse inventory management software. First, you’ll need to decide what type of system you need.

On-Premise vs. Cloud-Based Systems

There are two main types of management systems for warehouse inventory: on-premise and cloud-based. On-premise systems are installed on your company’s servers, while cloud-based systems are hosted by a third-party provider.

Features and Functionality

Next, consider the features and functionality that you need. Some inventory systems offer basic features like inventory tracking and order fulfillment, while WMS systems offer a more comprehensive suite of tools, including warehouse optimization.

Pricing

You’ll also need to consider the price of the system. Inventory and warehouse management systems typically start in the tens of thousands of dollars and can be priced upwards of a couple hundred thousand dollars. However, many system providers now charge on a subscription basis. For a much smaller fee, you get full access to the system as well as technical support to ensure that the system is always up and running.

Logimax WMS is a cloud-based warehouse management system that offers all of the features and functionality you need to streamline your inventory management process. Logimax WMS is priced on a yearly subscription basis, so you can get started without having to make a large upfront investment.

Standalone vs. Add-On System

Finally, you’ll need to decide whether you want to purchase a standalone system or integrate your warehouse inventory system with your existing enterprise resource planning (ERP) system. If you have an ERP system in place, it might make sense to integrate your inventory system with it. This would allow you to share data between the two systems and improve efficiency. However, if you don’t have an ERP system, you can still purchase a standalone WMS or inventory system.

Logimax WMS: Inventory and Warehouse Management for 3PLs, Distribution Companies, and More

Logimax is a comprehensive WMS built for 3PLs and distribution companies, but can also handle complex industries such as consumer packaged goods, pharmaceuticals, cold storage, and more. Our system is browser-based and lives in the cloud , so it can be accessed from anywhere, at any time. Logimax WMS also integrates with existing ERP systems or other complementary software solutions such as EDI, TMS, etc.

Some of the key features and benefits of Logimax WMS include:

  • Comprehensive inventory management including real-time tracking of stock levels, locations, and movements
  • Flexible order management including support for multiple order types, custom workflows, and user-defined rules
  • Powerful reporting and data analytics tools to help you optimize your warehouse operations
  • Support for multiple warehouses and stock locations
  • Integration with popular ERP systems such as SAP, Oracle, or Microsoft Dynamics
  • Scalable and modular design so that you can add new features and functionality as your business grows

If you are looking for a comprehensive, cloud-based system that offers all of the features and functionality you need to streamline your inventory management process, Logimax WMS is the perfect solution for you.

Conclusion

By following these tips, supply chain businesses can ensure that their warehouse is well-organized and prepared to handle any challenges that come their way. Implementing these tips will help warehouses run more smoothly and efficiently, which will ultimately lead to happier customers and higher profits.

Logimax WMS is a comprehensive warehouse management system that can help you streamline your operations and improve your bottom line. For more information on how Logimax WMS can benefit your business, contact us today.

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Services to Expect from Your Warehouse Management Software Provider

All warehouses, distribution, and third-party logistics facilities want to make sure that the warehouse management software – often referred to as WMS software – they choose is a good fit for their business and how it integrates with their supply chain. The WMS software must have all the features your business needs. But there are other aspects of a warehouse solution “fit” that are equally essential: service and support.

A professional and experienced service provider will ensure the software has the warehouse processes your business needs. They also will make sure you have the right solutions for integration, implementation, and post-installation support. This includes continuing troubleshooting and supporting your growth initiatives for better operational efficiency. In this blog post, we’ll highlight some of the most important service and support features you should look for when reviewing warehouse management software providers.

The Best Warehouse Management Software Integration Begins with Extensive Pre-Planning

Having a solid, advanced game plan is key when you consider your next WMS software provider. Logimax’s professional services team will work with you to identify your company’s specific needs and provide proper WMS solutions for initial integration and beyond. As a premier inventory and warehouse management software provider, the Logimax service team has the expert knowledge necessary for fulfilling your inventory management objectives – from logistics planning to warehouse and distribution center strategies.

Each customer is assigned skilled staff members who can analyze warehouse flow patterns to recommend reorganizing options if needed. This may include moving goods to better locations within the warehouse or implementing more efficient organizational systems that can save time on warehouse loading and unloading.

Logimax is dedicated to client success. We have the industry knowledge, customer service experience, and technical know-how to make all of your inbound or outbound operations more efficient. This includes project planning, software installation, required integrations, system configurations, system testing, inventory tracking, and warehouse operations improvement assistance.

Working with Your Company to Improve Warehouse Management System Processes

two men reviewing inventory in a warehouseServices from your warehouse management software vendor should never end after installation. Instead, service and support should continue throughout the entire length of your relationship. Logimax will regularly evaluate your 3PL, warehouse, or distribution center with your core team to determine current and future business growth areas and possible WMS software adjustments that will keep your operations running efficiently and boost productivity.

“Just because WMS has been around for roughly four decades, doesn’t mean these systems can be put in place and left to fend for themselves as the business world around them changes and morphs at the speed of light,” notes an article from Logistics Management on optimizing your warehouse management software. “To be most effective in today’s fast-paced fulfillment environment, these specialized business applications should be regularly reviewed, updated, and optimized in a way that aligns with the business’s current needs.”

Logimax knows that your warehouse or distribution center may need help to grow alongside emerging trends and technologies all while you continue to manage inventory. That’s why our supply chain operations experts are always here for you, ready with the knowledge to help your company maintain its competitive edge.

Get Your Warehouse Management Software Customized to Fit Your Company’s Inventory Management Needs

In today’s world of shipping and inventory management, there are many considerations that need to be made when choosing warehouse management software, including the unique needs of your warehouse operations. Every third-party logistics provider and warehouse has its own way of accommodating these requirements.

cloud computing conceptTherefore, a new installation of WMS software may require integration and customization by adding modules, developing fields, and templating reports. By working with Logimax cloud-based WMS you can depend on a user-friendly interface and inventory accuracy while satisfying specific customer demands for each order and shipment.

One example includes picking orders on days certain items are to be shipped together. Logimax’s warehouse management software solution can provide the tools your distribution facility needs. Managing warehouse inventory for those ‘we have to do it this way’ customers might include a solution such as our kitting module to prep often-shipped-together items in advance to save on fulfillment time.

And as a top-tier partner with warehouse hardware manufacturers, our dedicated hardware representatives can offer competitive pricing along with a wealth of related supply chain hardware integration services:

  • Product configuration consulting and recommendations
  • Product delivery, testing, and set-up
  • Coordination of RF site surveys and installation
  • Hardware upgrade and trade-in programs
  • Mobile solutions for integrated barcode scanning and RFID
  • Hardware maintenance agreements
  • Product leasing programs for businesses
  • Media and supplies fulfillment (labels, RFID tags, ribbons, head cleaners, etc.)

Train Your Employees Before Warehouse Management Software Implementation and Thereafter

Any change management process should be developed before the WMS solution implementation and initial training take place in your warehouse. This includes addressing the order of operations across your company, employee competencies needed for workplace success with warehouse management software systems, hardware configuration issues like devices or networks, supply chain requirements, and shipping management.

Man scanning box barcode; woman looking at computer screenEven testing new warehouse management systems cannot make for a seamless integration if there isn’t a solid and dedicated team from your company – not just members of upper management. The implementation crew will need key employees from your company, your suppliers, and the WMS software provider, all of whom are committed to working together towards a successful inventory management transition.

Training should not end after implementation, however. The warehouse management system software provider you select should also have a continuous training plan to ensure operations run smoothly. Logimax always assigns a dedicated project coordinator during the transition and service periods. This ensures your company can take advantage of every aspect of the seamless integration plan and benefit from our first-class WMS solution support.

Comprehensive Warehouse Management Software Includes Training:

  1. Your trainer or system administrator
  2. Your Logimax implementation project team
  3. All Logimax solution users, including RF end-users

Choose a WMS Software Vendor That is Always by Your Side Through Thick and Thin

teammates reviewing inventory on a tabletYou never want to find your warehouse, 3PL, or distribution center at a standstill due to an issue with your warehouse management software. Your chosen warehouse management software provider should be there for any questions, issues, or upgrade assistance your company ever requires including:

  • Help Desk Support
  • Support Portal
  • E-Support Notices
  • Informational Blog Articles 
  • User Events
  • Regular Cloud-Based Software Updates
  • Developing New Features

Excellence in customer support is at the center of Logimax’s values. Customer satisfaction is very important to us. To fully support every customer’s warehouse software solution and ensure their immediate and ongoing satisfaction, we offer a complete range of services that help ensure we meet your timeline, budget, integration, and functional requirements.

Logimax offers great WMS software that can help you with virtually all of your supply chain and warehouse management needs. We offer professional services to make the integration process and ongoing usage much easier for businesses – resulting in better inventory accuracy and operational efficiency. For more information on how our cloud-based warehouse management systems’ extended support can improve your logistics supply chain now and for years to come, contact the Logimax expert team today.

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Warehouse Software Users Cautiously Embrace Change in 2022

Supply chain and labor challenges resulting from the pandemic have led to companies adopting more modern methods of running their distribution facilities over the past year, but leaders are somewhat guarded in doing so given the economy.

The following are some of the key trends from a recent annual survey by Modern Materials Handling. The survey results are from over 100 supply chain readers on their implementation and usage of warehouse software automation to improve their overall warehouse management.

Warehouse Software Investment Plans

man using drawing of a calculatorIn today’s economy, materials handling management software is a hot commodity. Companies are constantly looking for ways to optimize their operations and cut costs, and this type of software can help them to do just that. As such, it’s no surprise that 26% of companies surveyed said they were investing in new materials handling management software this year. However, 20% said they were upgrading their existing software instead, and 28% said they had no plans to expand their software purchases in the next year. While the current economic climate has certainly changed the way many companies approach materials handling management, it is clear that there is still a strong demand for this type of software.

Warehouse Management Systems

Those in the warehousing or distribution industry know that warehouse management system (WMS) software is essential for keeping daily operations running efficiently. According to a recent study, the use of WMS software dropped by 10% from 2021 to 2022. Yet despite this decrease, WMS remains the top software application in use by warehouses and distribution facilities. Transportation management software (TMS), labor management software (LMS), supply chain management and planning (SCP) software, and asset tracking software round out the top five most used software types in 2022. Order management, procurement, and inventory visibility are the main reasons cited for adopting a WMS. Even with a decrease in overall usage, it is clear that warehouse management system software will continue to play a vital role in warehouse and distribution operations.

Warehouse Management Software Benefits

cloud computing conceptWMS software is a key element in warehouse operations through inventory tracking, managing warehouse space and labor, and optimizing warehouse operations. An estimated 59% of warehouses have had a WMS for one to ten years, according to the survey. In addition, warehouse management systems provide many benefits like improved security, scalability, and warehouse efficiency. Security is a key consideration for many companies when choosing a WMS system like Logimax because it can be implemented in the cloud, providing the best scalability options. The cloud also offers increased security and disaster recovery capabilities. Many companies choose to upgrade their warehouse management system (WMS) every one to five years to take advantage of new features and benefits such as cloud operation.

Logimax WMS Solutions in the cloud...Learn MoreWhat trends do you see emerging in the warehouse management software space? Are you planning any changes to your warehouse operations in the coming year? As an expert in warehouse system management software, Logimax can help guide you through the clutter with the best warehouse management solutions. Contact us today to learn more.

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How to Maintain Order and Process Returns in the Warehouse Efficiently

Product returns are always a hassle. Whether it’s due to shipment damage, product malfunction, or product recall, managing returns effectively is essential for 3PLs and warehouses. One of the biggest challenges when handling returns is keeping employees’ labor-intensive tasks well organized. Through automated processing and integration with external systems, your 3PL warehouse management system (WMS) software should be easy for employees to use and track stock to process returns efficiently.  

Your Logistics Software is Key

WMS software is the backbone of any distribution center, and it can help you maintain order and efficiently process returns. With a powerful, easy-to-use warehouse management system, you will be able to track all inventory from initial arrival to shipping orders out the door. And since your WMS also handles returns or recalls, you can make decisions based on real-time data rather than estimates or guesses. 

The best 3PL WMS software should supply product information and traceability for every single item moving in or out of your facility. This includes inventory location assignments, product expiration dates, and lot numbers. Lot and expiration date details should automatically be tied to each item’s barcode since all inventory transactions require a scan. Warehouses whose WMS supports radio frequency and barcode labeling can leverage their wireless network to experience dramatic increases in inventory accuracy, picking accuracy, and productivity.  

Efficient logistics operations are vital to product returns and recalls. The best WMS software from Logimax optimizes efficiency by:  

  • Automatically sorting single or batch orders by date 
  • Measuring user productivity against established time standards 
  • Automatically enforcing product consolidation and rotation based on item and location rules 

WMS Software Can Help with Labor Savings 

All return and recall processing rules can be pre-set and tracked through your WMS software. Logimax can even work with your HR system via advanced metrics to preplan and optimize workflow to track labor hours. Utilizing barcoded employee badges and asset/equipment tags, 3PL warehouses can easily trace employee time and attendance, labor and equipment costs for returns, and how long employees and equipment are assigned to activities. With the WMS software and your HR system working together, you will know exactly how high your labor costs are per task and can make any future accommodations for better productivity.   

Instituting Return Procedures 

Return guidelines are usually specified by each customer based on their requirements. However, 3PL warehouses always implement a standard set of procedures for returned goods because you must have a set way of physically handling and processing inbound returns. Every step in the process can be stored in Logimax’s WMS software for full return traceability. 

1.  Receiving Returned Inventory

A Return Merchandise Authorization (RMA) or Return Goods Authorization (RGA) form should always be filed prior to the initial product return. These forms can easily be generated and sent using a web client portal. Customer name, return authorization date, order number, and carrier tracking number are pieces of information usually included. On arrival at the warehouse, the shipment is compared to the RMA/RGA for accuracy. Once received into the WMS system, returned products should be marked accordingly and moved to the inspection area.

2.  Inspecting Returns

When you receive a returned item, it’s important to be thorough in your quality inspection process. There are a few different things you’ll want to check for: 

  • Carton and product damage 
  • Product expiration dates 
  • Product tags, including barcodes and stickers 
  • Any other markings on the product or packaging that may indicate tampering or reconditioning 

Food items cannot be resold once returned. Log these returns immediately and dispose of the food product accordingly. Return damaged or malfunctioning products to the manufacturer or destroy them per customer instructions, recycling procedures, and governing agency guidelines.   

3.  Repacking Inventory

Non-food products can be resold if the item is not damaged or malfunctioning and damage is only to the packaging. These items can usually be repacked and added back into inventory with a new SKU assigned to note that it was previously returned. These items are sometimes offered at discounted prices — as warehouse deals or opened box discounts. Repacks occur either at the warehouse facility or the manufacturer depending on the 3PL warehouse partnership.  

Procedures for Recalls

Distributors and 3PLs both can be incredibly valuable to brands in managing their product recalls. During a recall, a warehouse must be able to provide complete life cycle information on affected SKUs, including lot number and expiration date. It’s vital that the warehouse is aware of what recalled inventory is in-house, quantities shipped out already and to whom, and how much recalled product is yet to be received.  As a general rule, recall procedures should include: 

  • Report all prior shipments of recalled products to your client. 
  • Immediately put a hold on all of the recalled SKUs. No product marked for recall should be allocated or shipped, even if it is on the staging dock. 
  • Assign a segregated area of the warehouse for recalled products. For better visual identification, indicate the area with appropriate signage and mark items with hold tags. 
  • Alert customers. This may be done by the manufacturer or distributor depending on procedural recall assignments. Customer communication typically is in the form of an email and sometimes accompanied by a press release. 
  • Do not receive any additional recalled product from the manufacturer even if it is on order.  
  • Change the class code of the recalled product SKU for potential ordering, picking, receiving (returned), or destroying under specified guidelines and regulations.  
  • Generate and issue appropriate reports to the client. 
  • Some clients may require a mock recall as part of their partnership with the warehouse to ensure that the process will run smoothly, should a recall occur.  

Trends in Returned Products

Logimax WMS software can also aid your clients in identifying trends in returns by generating customized reports. These can include which products have been returned, why, when, and how often over select periods of time. This is particularly helpful in identifying future recalls, uncovering packaging or shipping issues and problems, and highlighting possible product defects or opportunities for improvement. The ability to provide this information to your clients gives your business a huge advantage. 

Because the supply chain is built on relationship building and cooperation between your 3PL warehouse and customers, look into finding the right technological solutions for your inventory tracking. Make your returns processes more effective by integrating the best software for warehouse management systems from Logimax. 

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5 Ways to Better Manage Your Inventory

Transparency with your inventory is the surest way to show customers your warehouse operation can be trusted. As paper bookkeeping becomes more obsolete, businesses need to stay ahead of the trend by incorporating digital tools and best practices to help them grow.

Losing sales due to inaccurate inventory counts, or lack of inventory required to fill orders will drive customers to the competition and harm your company’s reputation. Here are five software applications or features that your company should adopt to ensure greater management of your inventory.

  1. Workflow alerts. What happens if there is an unexpected change to your inventory? Workflow alerts get the word out to everyone in your supply chain — the supplier, distributor, manufacturer, and customer — to let them know the problem, the resolution, and the new forecast. These real-time alerts are essential when merchandise is delayed, the wrong inventory counts arrive, or when back orders were not fulfilled.
  2. Inventory forecasting. Enable tools using data algorithms and historical sales data to help you assess demand levels of inventory so you can manage it better to increase sales. You don’t want to make the same mistake twice, such as having low inventory of a particular product during a time in the year the data says it’s needed most. Forecasting helps you prepare automatically; it can even coordinate multiple warehouses to check on overstocked items during a time when there’s a pressing need for them.
  3. Analytics. As with forecasting, analytics tools help your warehouse operation run more efficiently by showing you areas for improvement. Historical data is the basis for reports that may identify trends or shortages, or even drill your process down to provide a snapshot of how things operate during a certain time of day or year. Transparency will help reveal all the inefficiencies in your process in order to help you come up with ways to rectify them.
  4. Warehouse Management (WMS). Inventory management is an essential feature of any WMS. When received, inventory is scanned and assigned a place in your warehouse — All information that is stored in the WMS, which gives you an added level of verification and helps reduce picking errors. The right WMS will also optimize your warehouse space, give you real-time visibility into all of your warehouse activity, and comply with quality control guidelines.
  1. Mobile Proof of Delivery. This application will give your supply chain a real-time notification that the product arrived where it was meant to go. This will save time and eliminate the need for a tracking device or scanning. Managing your inventory when it enters your warehouse and when it leaves is your responsibility, so having greater assurance that it arrived at its final destination is just another way to keep your customers satisfied.

Want to explore a warehouse management solution that fits your business? Visit logimax.com or call (855) 253-8855 to set up a demo or to learn more about our WMS and 3PL software.

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Risky Business vs. Risk Management: JIT vs. JIC in the Warehouse

Just-In-Time (JIT) inventory control is well known in the warehouse management industry. Most recently, JIT has become quite a challenge for many industries due to supply chain uncertainty. This has resulted in manufacturing and warehouse distribution paralysis worldwide. Was your company prepared for the crisis? If not, it’s time to consider a Just-in-Case (JIC) approach.

JIT was an effective inventory control method until 2020. Then COVID-19 shook the world, straining the economy and closing down businesses everywhere. Beyond the travel and hospitality industries, schools and hospitals, the pandemic affected manufacturers, logistics, and distributors. The resulting shut-downs left customers with constant low order fill rates and no relief in sight, continuing to this day.

First incorporated by Japanese manufacturing companies in the 1970s, the JIT management strategy aligns raw-material orders from suppliers directly with production schedules. The strategy was then adopted in the U.S. to improve manufacturing, operations, and inventory control. Later, the technique became prevalent in warehouses and distribution centers to improve efficiency and inventory overhead.

Recent supply chain delays have given rise to raw materials and inventory not arriving as scheduled, impacting production capabilities and halting the flow of goods to and from warehouses. While companies are battling to meet order-fill, consider implementing Just-In-Case (JIC) for your 3rd party logistics warehouse (3PL).

What is Just-in-Case?

JIC approaches forecasting from another angle, encompassing careful planning and some risk-taking. According to a December 2021 article by Inbound Logistics, “Businesses are transitioning from Just-in-Time to what has become known as a ‘Just-in-Case’ strategy. Just-in-Case refers to the practice of holding larger amounts of ‘safety’ stock, enabling a company to avoid stockouts.”

While some 3PL warehouses may be wary of taking risks, JIC incorporates risk management. Businesses must rely on their warehouse management system (WMS) software for complete and accurate reporting to provide accurate information to determine which products are, and will remain, in high demand, to prevent excessive shipping delays for the foreseeable future. It’s pretty simple – make the investment now so you can assure better order-fill for your customers.

The idea of JIC goes against lean inventory control in every way since it affects up-front investment, risk management, warehouse space, and inventory overload. At first look, JIC doesn’t seem like an efficient business practice. But does it hurt? If you can meet customer demands by having inventory on hand to meet order fill, it’s a win-win for everyone in the chain. In the end, it provides a competitive advantage to your customers in the marketplace.

If you need help addressing supply chain issues with your WMS software or implementing Just-In-Case inventory control in your warehouse, contact us to find out how Logimax can help!