Legacy warehouses, with their outdated layouts, inefficient equipment, and paper-based inventory systems, are a liability rather than an asset. Poor space utilisation and ineffective equipment like old conveyor belts or forklifts often lead to frequent breakdowns, higher costs, and slower operations. Outdated lighting, heating, and cooling systems contribute to higher utility costs. Additionally, reliance on manual systems results in errors, slow processing times, and inaccurate inventory information. These inefficiencies create data silos, making it difficult to get a unified view of operations.
Below is a step-by-step process to help you upgrade and optimise your warehouse operations.
Our step-by-step process towards modernisation
Upgrading and optimising operations is critical for improving efficiency, reducing costs, and meeting the demands of modern supply chains.
1. Assess Current Operations
Begin with a comprehensive audit of your warehouse, including its structural integrity, workflows, equipment, and technology. This will provide a clear understanding of where improvements are needed.
2. Revisit your warehouse layout
Re-evaluate the layout to maximise space utilisation. Move fast-moving items to easily accessible locations and group frequently ordered products. Use ABC analysis to categorise inventory based on importance, allowing high-priority items to be stored in optimal locations.
3. Upgrade your Warehouse Management System (WMS).
Upgrading to a modern WMS is critical if you’re still using manual systems or outdated software. A WMS automates processes, provides real-time inventory visibility, and optimises picking and shipping routes. Choose a system that integrates with your company’s other financial and supply chain platforms and supports mobile devices for scalability. Cloud-based systems are a flexible, cost-effective option.
4. Invest in automation
Start small and scale up as you see benefits. Consider automating conveyor systems, guided vehicles, or even robotic picking. Implement barcode scanning or RFID technology to streamline inventory tracking, reduce errors, and improve efficiency.
5. Improve inventory management
A Just-In-Time inventory system helps reduce excess stock and minimise storage costs. Collaborate with suppliers to ensure timely deliveries and adjust safety stock levels to avoid stockouts or overstocking. Data-driven decisions, supported by your upgraded WMS, will refine inventory management practices.
6. Design for scalability
Ensure upgrades allow for future growth. Choose systems that can handle increased volume and integrate automation to expand your operations. E-commerce warehouses, in particular, need to be equipped to manage higher order volumes and faster fulfilment times.
7. Focus on sustainability
Adopt energy-efficient practices such as upgrading to LED lighting, using renewable energy, and optimising pallet and packaging usage. Implement recycling and waste reduction programs to cut costs and meet consumer expectations for sustainability.
A road map to implementation
A phased approach to implementation minimises disruptions. Start by defining clear objectives. Is the focus on efficiency, cost reduction, or customer satisfaction? Gather and validate historical data on facility performance, document workflows, and identify bottlenecks. Investigate WMS options that fit current and future needs and consider piloting automation projects in high-priority areas.
Engage Your Workforce
Employee input is crucial for the successful adoption of new systems. Involve staff in the planning process and provide training on revised operations and new technologies.
Upgrading and optimising a legacy warehouse is a significant investment but essential for maintaining competitiveness. Following our roadmap, you can transform your warehouse operations, leading to increased efficiency, reduced costs, and improved customer satisfaction.
This is a good time to introduce or upgrade a WMS. The selection process can be complex, so it’s advisable to seek expert help. SCCG has extensive experience running RFPs and negotiating with vendors. For assistance with your WMS project, contact us at +44(0)1926 430 883 or info@scgltd.com.
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