If you are trying to achieve Logistics Solutions for your business, there are a few things that you need to keep in mind. These include reducing picking time, outsourcing logistics, managing returns, and restocking supplies in an emergency.
Restocking supplies in case of an emergency
Restocking your inventory is much more complex than merely ordering from your supplier. Various methods ensure you have the right amount of stock on hand. This includes a cold storage refrigerated warehousing. Using a kanban can help you optimize your supply chain and ensure you are stocked with the items your customers need. It also enables you to speed up a stocking.
A simple restocking method involves:
- Pulling an empty bin from the top of a shelf.
- Restocking it.
- Replacing the old one.
These are all standard practices in warehouses. An alternative method is to use a two-sided indicator bin. While this method is easier on your supply line, it requires more effort and a more significant initial investment.
Another method is to use RFID scanners to track your bins. You can then measure the time it takes to pull a container from the top of a shelf to the bottom. This can be a helpful indicator of when your stock needs replenishing. But, again, using a kanban can save you time and hassle by automating this process.
Reducing picking time
Using a technology-enabled logistics solution to reduce picking time can be an effective way to improve productivity. The answer can dramatically decrease labor costs and improve picking accuracy when implemented correctly.
One of the most costly costs in a DC is labor. The amount of time wasted on picking can drain a warehouse’s profitability. In addition, over time can creep into warehouse operations.
To reduce picking time, a company should consider several key performance indicators. This includes assessing the number of picks per hour and the error percentage. These metrics can be calculated using an order management system. Also, a company can measure the return rates for its products.
Another way to reduce picking time is to increase the efficiency of the entire picking operation. This is achieved by spreading the load across several areas. For example, workers should avoid mixing large items in one bin. Alternatively, they should avoid mixing SKUs in the same bin.
Managing returns has long been a challenge for e-commerce sellers. However, with a good reverse logistics process, companies can significantly cut losses and improve customer satisfaction and loyalty.
A well-designed reverse logistics process can increase revenue, decrease storage and distribution costs, and optimize the return processing time. In addition, the process increases inventory visibility and helps with post-sales support.
When managing returns, quality control is one of the most critical aspects. Therefore, it is essential to identify problems with a product as quickly as possible. This enables adjustments to suppliers, raw materials, and production processes.
Managing inbound and outbound shipments is also essential to the returns management process. Inbound shipments can help reduce the costs of scrap parts and waste disposal. Outbound shipments can also improve the security of the product.
One of the main challenges facing returns management is the lack of knowledge about the actual operational cost of the return process. Most firms are unaware of how much they spend on managing returned products.
Outsourcing logistics can help a company improve its inbound and outbound flows and reduce costs. It can also improve profitability. A well-established and strategic logistics outsourcing relationship can create a competitive advantage. However, there are also some disadvantages.
Logistics is complex, and not every organization can handle it efficiently. As a result, many companies choose to outsource their supply chain operations. This helps them focus on their core competencies. In addition, outsourcing can offer access to new technology, such as the Internet of Things.
While it can be tempting to outsource as much as possible, doing so can lead to more problems than solutions. If you outsource too much, you might not have the resources to keep up with the demands of your business. That’s why you need to carefully evaluate your options.
The logistics outsourcing industry is growing, especially in Vietnam and the ASEAN region. Asian countries have a young market and are experiencing a lot of growth.