Manage Your Warehouse Efficiently to Meet Customer Needs

warehouse management

Managing a warehouse is not an easy feat. From managing inventory, aiding efficient picking, and ensuring the lowest cost shipping to creating a safe work environment to protect workers, there is a lot to monitor and manage. But when you manage your warehouse efficiently, you also reduce costs and meet customer needs resulting in higher profits for your organization.

Using these tips, you can find smart solutions to making your warehouse more efficient and running your business more successfully.

manage your warehouse
Photo by Alexander Isreb: on Pexels

Why managing your warehouse efficiently matters

Meeting customer needs

The way you manage your warehouse is the least sexy part of marketing but has a huge impact on customer satisfaction. First, in a world where consumers increasingly buy online, getting products to customers quickly is a huge competitive advantage. In fact, major retailers like Walmart and Amazon are experimenting with drone deliveries to get products to consumers the day they order.

In the image below, you see how fast, free shipping impacts consumer decisions when it comes to online shopping. A recent study found that 60% of online shoppers will abandon their shopping carts if they feel the promised delivery is too slow and consumers who experience late deliveries are less likely to shop the retailer’s online store again — 69% said they are either less or much less likely to shop with the retailer again in a survey from 2021.

Infographic: Delivery Options? Free and Fast for the Win | Statista You will find more infographics at Statista

But, shoppers in physical stores also experience failures when you manage your warehouse inefficiently. For instance, inefficient warehouse operations may mean stockouts at local retail stores. Not only do stockouts represent lost sales for your company, but may incentivize consumers to switch to the competition when their preferred product isn’t available in the store. Do you really want to send your customers into the willing arms of a competitor, giving the competition a chance to capture loyalty from your brands? This is especially dangerous for convenience goods where customer loyalty is notoriously weak. When retailers experience frequent stockouts across product lines, they may lose customers to another retailer, so they’ll push back hard on manufacturers that don’t meet their delivery dates.

Finally, from a consumer’s perspective, inefficient warehouse operations may result in them not receiving the goods they ordered due to employees’ picking errors.

Manage your warehouse to reduce costs

The cost to carry inventory can be as high as 30% of the value of that inventory since unsold inventory must be stored, insured, and protected against everything from pests to vandals to thieves. Unsold inventory also becomes unsaleable in some industries, especially electronics, where the fast pace of progress makes products obsolete in record time, fast fashion, and perishables like food.

Once generally ignored, the high cost of running a warehouse, managing inventory, and other logistics costs. A recent report found that up to 25% of the cost of goods sold is attributable to warehouse costs. That’s mammoth!

Here are just some of the costs associated with running a warehouse:

  • rent, which runs an average of $7.51 per square foot
  • equipment such as conveyors, forklifts, and racks
  • computer systems and RFID to manage your warehouse space and ordering processes efficiently
  • picking personnel to put together customer orders. You can use automated warehouse picking to reduce these costs.
  • supervisors
  • electricity and other utilities

When you manage your warehouse efficiently, you reduce these costs. So, let’s explore ways to manage your warehouse more efficiently.

Manage your warehouse more efficiently

Provide sufficient inventory to fulfill all orders

Providing sufficient inventory management is a great way to ensure your warehouse is efficient and satisfies customers. Having sufficient stock to ensure that every customer’s order is filled promptly without holding excess inventory is a science. Supply chain management uses a number of mathematical tools for calculating how much inventory you need to meet demand based on data including past sales, changing customer demands, and seasonal changes.

To guarantee good management and inventory, it is a smart idea to invest in a janitorial company to manage the refills and stock in your warehouse. This will reduce your manual labor, so you can get on with other tasks. Hiring professionals will ensure that you can increase your business’s efficiency and success.

Invest in robots

Various tasks take up a lot of time and do not require human labor, such as picking items and packing orders.

Therefore, it is a great idea to invest in robots to perform these tasks, as it allows your business to be more efficient. Robots can handle larger, heavier items without injury, don’t take sick days, and can work 24/7.  You can reduce your manual work and guarantee that your business is as efficient as ever. You can be on your way to building a smart warehouse if you utilize robots.

Team training

Your warehouse team must be well-trained before they start work. You should train your current team and also pursue training for anyone who joins the workforce to guarantee that everyone knows the safety and work procedures.

Warehouses are not the safest of places, so you must carry out safety training for all employees to know how to handle accidents and how to minimize the risk of them occurring.

Furthermore, pursuing team training will also allow team members to understand how to efficiently perform tasks and maximize your business’s efficiency.

Know how to manage data

If your warehouse business does not successfully manage its data, then you will suffer from a lack of efficiency.

For instance, not knowing how much stock you have in your inventory or where you stored a particular item can reduce your business’s efficiency and cause you to incur issues with customers who are waiting longer for their orders. Using a designated location for products is wasteful when compared with computerized inventory management and RFID which allow you to store inventory more efficiently. Plus, good inventory management means less moving items within the warehouse to find an item needed to fulfill an order.

Using the Internet of Things (IoT) to successfully manage your data will guarantee that you can stay on top of your warehouse’s data management and ensure efficiency such as in this cross-dock facility where products move easily from unloading to loading.

supply chain optimization
Image courtesy of Creative Safety Supply

As mentioned above, you also need data to estimate inventory purchases to reduce excess inventory or failing to meet customer demands.

Maximize your warehouse security

If your warehouse does not have maximum security, it can risk being intruded upon, which might reduce your inventory levels and cause your business to struggle due to a lack of goods left to fulfill orders as well as the excess cost of ordering more inventory to meet demand.

Maximizing your warehouse security will ensure that your business and its belongings can stay protected and that there are minimal disruptions. It is a good idea to install cameras on your warehouse’s exterior and set an alarm when nobody is on the property so that if an intruder arrives, they can be deterred and the police can be informed of their whereabouts.


Managing your warehouse to reduce costs and satisfy customers isn’t easy, as you can see from the suggestions made to improve efficiency. However, the return on your investment of time and money to streamline warehouse operations more than pays for itself quickly.

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