Whether your warehouse is busiest before Christmas, in the spring or in the summer, don't underestimate preparation. Unmanaged peak hours usually result in increased error rates, dissatisfied customers and costs associated with returns and complaints, which unnecessarily reduce profits from the best time of the year. To be well prepared, focus on these processes, among others.
Perform merchandise analysis and ensure inventory
To meet demand, you need to have enough stock of items that you know sell well during peak times. For example, you can use the following to help you identify them: ABC analysis . This is based on the Pareto rule and categorizes goods into three groups according to what percentage of total turnover they generate .
For example, you may find that 20% of your products generate 80% of your sales during peak times, and you immediately know that you need to stock up on them. You plan your inventory based on past results, e-commerce market growth, and demand growth for the product.
Think about purchasing goods in advance. According to research by Packhelp, 62% of e-commerce companies purchase goods for Christmas in August .
Review the marketing plan and reorganize the merchandise
Find out what marketing events will be running during peak periods and adjust your warehouse layout accordingly. Move discounted items closer to shipping . If they remain on the back shelves, warehouse workers will have to walk around unnecessarily and orders will be processed more slowly.
If you use a warehouse management system (WMS) and your warehouse layout allows for reorganization, consider switching to a different warehousing strategy before peak hours, such as:
- zoning strategy , which divides the warehouse according to the turnover of goods – the most popular goods are in the expedition, the least purchased in the back shelves,
- or pre-stock strategy , where goods with the highest turnover are placed in stockpiles directly in the shipping zone
Simplify the training of temporary workers
Many warehouses hire part-time workers during peak hours, but a poorly trained part-time worker can make everyone else’s job difficult. Training new workers in a traditional warehouse usually takes weeks to months – that’s how long it takes for them to start showing results like others. Training also requires supervision and assistance from more experienced colleagues, which also wastes time.
The easiest way to speed up learning is technology. Learning time is reduced, for example, by mobile terminals , thanks to which the warehouse worker reads the goods and immediately knows that he has reached for the right piece. The ideal option is a warehouse management system (WMS) , which guides warehouse workers to the goods via the shortest possible route via a scanner. So, newcomers do not have to learn where each item is located , but simply follow the instructions of the terminal.
Ensure enough readers
If your warehouse workers use WMS or other warehouse system readers to pick goods, you will have to deal with their quantity before the peak. If you don't have enough for the part-time workers, you will either have to buy more or have the part-time workers pick goods "blindly", which smells like trouble.
The best way to solve this situation is to use a WMS with a mobile app that workers download to their smartphones. The app guides them to the goods on the order and uses the camera to scan barcodes just like with a scanner.
Minimize returns and speed up their processing
The more orders, the more returns. Handling returns robs warehouse workers and the rest of the company of time that could be better spent fulfilling orders. Therefore, you need:
- minimize returns by reducing error rates
- and speed up returns processing thanks to streamlined processes.
Again, automation, such as that offered by WMS , is the best way to help with both. A managed warehouse reduces the error rate by guiding warehouse workers directly to a specific piece of goods, and after reading the code , it confirms that the warehouse worker has selected the correct goods according to the order . This means, for example, that they will not mix up the size or color of T-shirts lying next to each other.
Handling returns with WMS looks like this:
- the warehouse worker uses a reader to read the code on the returned shipment,
- The WMS asks the warehouse worker via the reader whether all items from the original shipment have been returned,
- The warehouse worker stores the goods in a return position and information is automatically sent to the e-shop that the goods are back in stock.
We also recommend placing a return rack near the reception area so that warehouse workers do not scatter goods throughout the warehouse and at the same time, they can remove them first in case of another order.
If you are experiencing warehouse peaks, please contact us . We will discuss your situation with you and advise you on the best way to resolve them.
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