Warehousing and distribution are critical parts of our economy. With more people wanting products more quickly, businesses must streamline their logistics to maintain a competitive edge.

Which steps can you take to improve warehousing and distribution? Can they expand in tandem with your business’s growth? This guide gives you easy-to-implement tips to improve these critical operations, save time, and increase profits. For more on logistics management, read on

Grasping the Fundamentals of Warehousing

The distribution of goods runs smoothly when the warehousing function of a business works well. The basic factors that make up a good warehouse are good inventory practices, a good layout, and good technology. Having a good inventory system allows you to always know what’s in stock and what’s not, which helps you fulfill orders more accurately (more on that later).

You can save serious money with excellent inventory practices. A study by McKinsey shows that businesses that have good inventory practices can save up to 30% in costs. The next part is the layout. A favourable layout not only means that you can find goods easily. It also means that you can put away goods easily.

Enhancing Distribution

After achieving a streamlined warehouse, you can turn your attention to the fulfillment process. An efficient distribution plan guarantees the prompt and accurate selection, packing, and shipping of orders. It’s your first line of defense against customer frustration.

You’re going to want to offer as many options as you can to customers. Some customers may prefer expedited shipping and are willing to pay for it, while others may expect you to use the least expensive method. Most customers are happy when they have choices, and they’re even happier when those choices serve their particular needs.

That said, the speed and reliability of your delivery partners have a big impact on customer satisfaction. If you choose to work with local delivery services and smaller courier companies, you not only reduce shipping expenses but also speed up the delivery process for your customers. That’s a win-win.

Application of Technological Innovations

Technological advancements are altering the landscape of warehousing and distribution. Tools and systems, including warehouse management software (WMS) and even robots, can help make things run more smoothly. These warehousing tools allow for better optimization of inventory and related processes. One recent survey from Warehousing Stack found that companies using WMS, WES (warehouse execution systems), and robotics see around a 20% boost in efficiency. Furthermore, these tools and systems have the potential to reduce human error, particularly in the context of robotics.

Reducing Expenses

Long-term success requires reducing costs in warehousing and distribution. One way to do this is to use energy-efficient systems. Another is to contract with suppliers who understand the value of efficiency—and whose contracts are worth re-evaluating from time to time. When you engage with your suppliers, you can find savings that, together with your energy-efficiency efforts, can really add up.

You can also save a lot by not trying to do everything yourself. Many firms are learning that when they hire experts to manage their logistics, they achieve a better bottom line. And oftentimes, “doing it yourself” means you need to incur capital expenditures for warehousing and equipment that your operation really doesn’t require.

Ensuring Customer Satisfaction

The customer’s happiness is paramount.  This is a business that runs on the goodwill of the customer. And you have to work hard to keep that goodwill, just as you work hard to keep the customer. Your success hinges on their success, and your success increases if you provide them with superior service compared to what they could receive elsewhere. This is because the services you provide are not necessities, but rather something they choose to pay for, even if they could opt out.

Finding Success in Logistics: Warehousing and Distribution

It is not enough to simply exist in the warehousing and distribution sector; one must find success amid the exponential growth of eCommerce. Employing a set of best practices is the key to thriving in this challenging environment. These practices form the foundation of any successful operation, making it—if not easy, then at least clear—how one should move toward that next stage in the logistics game.