Warehousing 101: Strategies and Technologies to Optimise the Space

A single click or tap can help you buy whatever your heart desires–such is the swift world of e-commerce and quick commerce. Today, businesses must be quick, equipped with rapid last-mile logistics & warehouse management and meet their customers’ needs to the T. The key for manufacturing in India to gain a strong foothold and beat out the competition is to invest in a fully functional and well-designed warehouse.

Warehouses are more than just storage units - they are spaces where technology and strategy are married to create an optimised point in the supply chain. A study by the Warehousing Education and Research Council (WERC) has identified poor use of space, labour management and inventory maintenance as top operational challenges for most businesses. It also states that 77^% of companies are actively seeking automated warehouses & modern manufacturing facilities to address these concerns^[1]. Here is a handy guide on how a warehousing facility can be leveraged to take a business to greater heights.

What is Warehouse Optimisation?

Warehouse optimisation, as the name suggests, refers to using effective strategies to improve operations for greater efficiency and productivity at the best industrial parks in India. The process includes fine-tuning workflows, using cutting-edge technology, enhancing spatial use of industrial land and aiming for precise inventory management. The end goal of logistics warehouse optimisation is to reduce costs, boost speed and improve accuracy without compromising product quality and workplace safety. The primary aspects covered under warehouse optimisation are:

• Operational: Involving the daily activities and processes within a warehouse, including picking models, inventory rotation, shipping and returns management.
• Functional: Refers to broad strategic elements such as layouts, design, technological integration, workforce development and supplier relationships.
• Holistic: Moving away from isolated improvements, it considers the warehouse as an ecology, cognizant that changes in one area can affect others.

What are the Different Types of Warehouse Optimisation?

Here are the different kinds of logistics warehouse management & optimisation that could be fine-tuned with the use of strategy and technology:

• Space Optimisation: Space optimisation is crucial to streamline warehouse operations and manufacturing in India. The point of the matter is to use every bit of space available to its fullest potential. Selecting strategic racking systems and harnessing the vertical dimension can help businesses use their logistics warehouse space optimally. Businesses can leverage warehouse space optimisation like the strategic selection of racking systems. The choice between pallet racking, cantilever or drive-in racking can significantly influence space utility. Beyond the horizontal expanse, there's an often-underutilised vertical dimension. By leveraging high-rise shelving and introducing mezzanine levels, logistics companies can expand their storage capacity manifold at world-class industrial parks in India.
• Labour Optimisation: The trick to effective labour optimisation is to boost workers’ productivity without putting their welfare at stake. A step in the right direction is to hire qualified workers and conduct regular training sessions. Ergonomic spatial design and shift scheduling can help the warehouse operate at peak productivity while providing workers with job satisfaction.
• Inventory Optimisation: Inventory-based warehouse optimisation helps businesses balance the risks of capital-intensive overstocking. Leveraging techniques like demand forecasting and data analytics is a way to maintain the supply chain while keeping market fluctuations in mind. From dynamic allocations to the use of FEFO (First-Expire-First-Out) and FIFO (First-In-First-Out) methods can help manage inventory and reduce waste.
• Storage Optimisation: Logistics warehouse storage optimisation calls for strategic placement and rotation of stock using various putaway methods, such as directed and random putaway, along with ABC analysis and SKU prioritisation. Tips like placing high-turnover items within easy reach to reduce picking time and stock transfers can help businesses optimise their storage space.
• Technological Optimisation: Technology like Warehouse Management Services (WMS) have revolutionised operations by offering real-time tracking, increasing visibility and boosting accuracy. Similarly, the Internet of Things (IoT), integrated logistics and various smart warehouse devices have helped with temperature control, asset tracking, giving feedback, etc. Robotics and automation have also cut down on manual tasks for logistics companies.
• Process Optimisation: Process optimisation involves fine-tuning all internal processes to ensure peak efficiency and productivity. Based on continuous improvement and using feedback to refine strategies, process optimisation consists of practices like cross-docking, i.e., transferring goods to outbound gates for reduced storage durations and quick deliveries.

What Strategies Can Be Used to Optimise a Warehouse?

Here are a few tried-and-tested strategies and technologies that can help logistics companies optimise a warehouse for increased efficiency:

• Warehouse Management Systems (WMS): A software, WMS can help businesses track inventory in real-time, optimise order fulfilment, track product locations and monitor productivity. It also involves integrating RFID technology or barcoding systems to allow for more accurate order picking.
• Demand Forecasting: Data analytics can be used to gain insight into sales patterns, season variations and external factors like market trends and economic indicators. Harnessing such data allows better maintenance of inventory to meet actual demand and prevent overstocking and stockouts.
• Automation and Robotics: Robotics and automation are game changers, allowing warehouses to meet the rising demands of e-commerce with the help of Automated Guided Vehicles (AGVs) and robotic picking systems. Paired with conveyors and predictive WMS, these integrated logistics tools can help address an array of concerns to create an efficient warehouse setup.
• Training and Development: Despite technological innovation, the human element is integral to warehousing. A well-trained team is the key to making technology work effectively and boosting collaboration and problem-solving. Augmented Reality (AR) training modules can also help simulate real-life events for enhanced training.
• Smart Storage and Shelving: Instead of traditional static shelving, businesses can optimise their distribution warehouses by making use of dynamic options like mobile racking, pallet racking or gravity flow racking. Such systems help ensure space is not wasted and items are easily accessible.
• Lean Practices: Rooted in Japanese businesses, lean principles emphasise maximising value while minimising waste, i.e.: holding inventory that turns over quickly and does not occupy space. Techniques like Just-In-Time (JIT) inventory, when stock is replenished when it is about to be used, can help reduce costs.
• Layout Design: The layout of a warehouse management system plays a huge role in optimising the flow of goods. Warehouse layouts can be enhanced using design aisles based on the machinery required. From placing high-turnover goods near the dispatch area to periodically assessing the layout, such activities can optimise a warehouse.
• Safety and Sustainability: In today’s changing climate, warehousing and storage fitted with energy-efficient lighting, renewable energy resources, avenues to minimise use of fuel, etc. is an optimal working environment. Similarly, a safe warehouse is efficient. An optimal warehouse should be designed to prevent accidents, injuries, damage and product losses.
• IoT (Internet of Things) Devices: IoT devices are interconnected and allow for real-time tracking and analysis that provide insights that were previously unattainable. While sensors can monitor temperature and humidity, asset trackers can supervise the location of goods. Such devices can send data to the warehouse management system, allowing for real-time adjustments.

Warehouse space optimisation has come a long way and has further to go for manufacturing in India. However, such strategies and technologies only come into use if the foundation is strong. Ergo, the warehouse in question must be designed for technological integration and strategic application. Lodha Industrial and Logistic Parks (LILP) at Palava and Kurla are state-of-the-art industrial & logistics parks that are designed to promote maximal use of space, easy mobility and energy-saving practices.

While Lodha Industrial and Logistics Park, Palava allows businesses to meet their bulk suburban warehousing needs and streamline logistics, Lodha Logistics Park, Kurla is designed for seamless in-city distribution, warehousing and last-mile delivery for quick delivery service, food delivery company, third-party logistics service provide, etc. for in-city warehousing solutions in Mumbai.

Being one of the best industrial parks in India, LILP ensures the best-integrated logistics experiences for warehousing in India and provides the best warehouses in Mumbai and industrial property for sale compared to warehouses in Navi Mumbai, industrial plots in Bhiwandi, industrial plots near Mumbai, industrial plots in Taloja, industrial plots in Thane, industrial plots in Navi Mumbai, industrial land for sale in Panvel, industrial land for sale in Mumbai, warehouse in Bhiwandi, warehouse in Taloja, warehouse in Kurla, warehouse in Thane, warehouse in Palava, in-city warehouse in Mumbai, in-city warehouse in Thane, an in-city distribution centre in Kurla, industrial land for sale in Maharashtra and distribution centres in Mumbai.

Lodha, India’s leading real estate developer, is creating top logistics parks in India and best-in-class warehousing solutions that cater to the evolving needs of modern businesses. With a focus on supply chain optimisation, warehouse management and logistics integration, Lodha delivers plug-and-play solutions designed for seamless operations and provides built-to-suit warehousing solutions for your tailored needs. Our warehousing spaces are equipped with the best features of industrial park cutting-edge automation technology, ensuring enhanced inventory management, reduced operational costs and faster turnaround times for businesses.

Invest in best-in-class warehouses at LILP and invest in an optimal future.