10 Warehouse Cost Savings Tips

Warehouse Cost Savings Tips

10 Warehouse Cost Savings Tips:

Modern Warehouses are becoming more complicated as a result of both increase customer requirements along with complex supply chain environments. However, cost savings can be realized by taken a step back and surveying your warehouse procedures along with implementing “best practices” to help streamline inventory flow in the most efficient manner.

The below suggestion are from my years of working with clients and observing what serves as the “best practices” in warehousing management.  A common theme in my suggestion is the incorporation of “lean” initiatives. By utilizing lean suggestions you can dramatically reduce waste, therefore saving costs, while also bringing value to your customers.  

1. Communicate Effectively and Often: By clearly communicating to workers your organizational goals, key performance indicators, (KPIs), and the processes to achieve them is one key to effective warehousing operations. When managers fail to create an environment of open and clear communication, employee productivity suffers, resulting in high turnover and wasted resources. Effectively managing labor cost in an area that should not be overlooked.

2. Standardize your Processes: Another best practice suggestion is reducing potential variation in areas such as unloading, accounts payable, shift scheduling, and facilities management. Standardization saves time and money, and reduces errors. Remember: There is always a better way to do anything.

3. Measure what matters:  For continuous improvement in your processes, measuring what matters is appropriate. If an outcome is not important to customers and shareholders, don’t waste time measuring it. A third party logistics, also called 3PL, managed distribution center I have had experience with for a major U.S. manufacturer adopted a work measurement program to gauge and report warehouse performance at the employee level. The facility increased productivity by 10 percent and reduced labor costs by 11.3 percent.

4. Outcomes and Enablers: Determine what drives processes to ensure the proper connection between outcomes and enablers. Key performance indicators (KPI’s) reflect the past; standardization and error proofing are the answer to productivity now.

5. Use the 5 Step Approach:  This simple approach can yield much to understand the “why” of your operations, not just the “how.” This approach: Define, Measure, Analyze, Improve, and Control reduces costly process variations. The backbone of Lean Six Sigma methodology, DMAIC ensures sustained, defect-free performance and highly competitive costs.

6. Involve, Align, and Empower your Associates: Listen to the Voice of the Employee (VoE): The people who do the work every day are process experts who know how to reduce or eliminate waste. Aligning your managers and staff to a company culture committed to inquiry, responsibility, partnership, and customer satisfaction can significantly impact warehouse productivity.

7. Educate your Leadership: Another suggestion is to always be asking the right questions, gather necessary information, make decisions, and take appropriate, corrective action. This is vital to improving processes, products, and services. Leadership should visit the shop floor often, and work together with their people to improve processes and solve problems.

8. Create a Strong Training Program: Cost Savings can also be realized through training programs that incorporates cross-training. Break a job down and present the operation to new associates. Allow them to test their performance before releasing them to the process.  Try having your employees “shadow” tenured employees to gain valuable hands-on experience.

9. Look at Variation: To increase productivity, boost efficiency, and cost control,  a careful look at variation is warranted. This is the heart of Lean Six Sigma: reducing variation to make a process more stable and predictable. Find a significant measure that reflects your process, then reduce the variability of that process as much as possible.  The results could yield very useful insights.

10. Finding the right level of automation and systems:  Return on Investment (ROI) analysis could put automation into your planning for cost improvement. The wrong material handling equipment can be creating hidden lost time and inefficient product flow, impacting cost and customer service. Ask yourself if you are using the correct technology to its potential to reach companies goals for efficiency, waste reduction, and cost savings?

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Payroll Functionality for Microsoft Dynamics NAV

Microsoft Dynamics NAV Payroll

VisionPayroll, from Kenek Software, is an integrated payroll management and human resources add-in for businesses using Microsoft Dynamics NAV. It is a flexible in-house solution designed to work with businesses in any industry — from manufacturing and services, to distribution and retail.

By using VisionPayroll as part of a Dynamics NAV-based ERP system, businesses maintain full control of their most sensitive employee data. Data entry and calculations are completed by in-house staff, lowering the overall cost per transaction and saving expensive processing fees with third-parties.

In addition, the ability to post, store and report upon detailed ledger entries per employee or departments saves considerable time and money required to obtain similar ad-hoc or “one off” reports from outsourced providers.

Key Features of Microsoft Dynamics NAV Payroll include to ability to:

  • Define an unlimited number of pay controls
  • Define pay cycles to suit the business
  • Support multiple business locations and job types
  • Enter, track and report pay by hour, pay cycle, and source
  • Calculate commissions
  • Track and post expenses
  • Handle annual U.S. and Canada tax updates easily
  • Print your own W-2s or T-4s

Additional functionality for Human Resource Functionality include the ability to streamline salary administration, on boarding of new hires, and the electronic management of all communication to employee.

Learn more about Payroll and HR functionality for Microsoft Dynamics NAV below:

Payroll Functionality for Microsoft Dynamics NAV

Microsoft Dynamics 365 Business Central Versions

Cloud ERP

Microsoft Dynamics 365 Business Central is an all-in-one business management solution that’s easy to use and adapt, helping you connect your business and make smarter decisions.  Built on functionality within Microsoft Dynamics NAV and adaptable to extend business applications to other Microsoft Cloud Services such as Office 365, Microsoft Flow, Power BI and PowerApps; Microsoft Dynamics 365 Business Central Solution can grow as your business requirements change while taking advantage of the latest technology.   Customers that select Microsoft Dynamics 365 Business Central Versions have a choice of either “Essentials” or “Premium”:

Essentials:  Leverage robust functionality and the power of the cloud to bring about better communication and information exchange across all areas of your business. The Essentials Functionality include the following areas with examples of functionality of each:

  • Advanced Financial Management-Cost Accounting, Inter-Company Postings, Cash Flow Forecast, Responsibility Centers, Multiple Currencies.
  • Customer Relationship Management-Contact Management, Opportunities, Outlook Client Integration, Dynamics 365 for Sales (CRM) Connectivity.
  • Inventory Management-Item Categories, Stock Keeping Units, Multiple Locations, Nonstock Items, Item Tracking.
  • Sales-Pricing, Discounting, Sales Tax/VAT (depending on country), Return Order Management, Invoices, Order Management.
  • Project Management-Resources, Time Sheets, Estimates, Jobs
  • Warehouse Management-Put Away, Pick, Automated Data Capture System, Bin Set-Up, Warehouse Management Systems, Cycle Counting.

Premium:  The Premium licensing includes all of the functionality in the Essentials version and enhances the ERP solution further with 2 powerful additional components: Service Management and Manufacturing.

  • Service Management-Dispatching, Planning, Service Orders, Contracts.
  • Manufacturing-Supply Planning, Agile Manufacturing, Capacity Planning, Demand Forecasting, Finite Loading, Machines Centers. Production BOM.

Learn more about Microsoft Dynamics 365 Business Central

Download the Microsoft Dynamics 365 Business Central Licensing Guide

Posted by iCepts Technology Group, Inc. A Microsoft Dynamics 365 Business Central Partner in Pennsylvania.

Key HighJump Warehouse Management Modules for Dynamics NAV

Warehouse Management Systems

Microsoft Dynamics NAV is a proven, robust ERP system, however, frequently companies with complex warehousing require even more capabilities and advanced inventory management in their warehouse operations.  This is where Warehouse Management Systems (WMS), such as HighJump Warehouse Edge create an extensive and more efficiency warehouse operations.

This advanced functionality in Key HighJump Warehouse Management Modules for Dynamics NAV can greatly help to achieve a total “end-to-end” supply chain solution to meet customer’s demands by incorporating both ERP and WMS such as:

Dynamic Quality Inspection: Tailored quality inspections can be designed with custom questionnaires, focused pass/fail criteria, and conditional activities to ensure the quality of both inbound and outbound processes. Mobile users can leverage the intuitive Win 8.1 tablet app to not only execute the inspections, but record pictures of the condition of the material, trailer, or container.

Integrated Document Imaging with OCR Support: The latest release of our Document Imaging system increases the user’s ability to navigate towards a paperless environment by offering optional OCR support. This allows the development of “form templates” which can be used to scan key information from a printed page and use that information to associate the document with relevant information stored in the WMS.

Powerful Multi-Carrier Shipping: Some see shipping as a disconnected process outside the WMS proper. HighJump sees it as an integrated step in the pick/pack/ ship handheld workflow allowing the user to save time and simplify their warehouse processes. The latest version of our multi-carrier shipping streamlines not only the “inline” shipping functionality, but also the exception shipping done from our shipping station.

Configurable Appointment Scheduling: We’ve enhanced the appointment scheduling capability available to the WMS 6.5 user by allowing them to manage a discrete number of appointments by time slot without predetermining an actual door assignment. This allows them to determine labor required and assign the available door when the inbound or outbound carrier arrives. From this information, we’ve driven solid KPIs that assist in both planning and negotiating arrangements with key carriers.

Extensible Activity Billing: The latest version of activity billing extends the capability for those users of the WMS who are either third party logistics companies (3PLs) or who share space in a single facility with others and bill them on a space and services rendered basis.

Integrated ASN Manager: While HighJump Warehouse has provided data for ASN production for many releases, the incorporation of the ASN Manager takes the capability to a new level. The people responsible for EDI within an organization now have full visibility, access, and edit capability to ensure that the ASN payload that is sent out is accurate and compliant with the requirements of the trading partner. The system also provides the ability to print GS1 labels, Bills of Lading, and Commercial Invoices.

Cloud–ready Label Print Manager: More and more customers are opting to use the cloud for their computing environment – whether it’s a private cloud of their own or leveraging one of the HighJump OnDemand public cloud solutions. Our Print Manager provides a secure, high-performance means of printing things like bar code compliance labels on premise while the services run in the cloud. This allows you to print jobs via the internet without utilizing a VPN.

Click Below to get the HighJump WMS Brochure for Dynamics NAV: