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FAQs (Frequently Asked Questions) on Warehouse Planning and Optimisation

FAQs (Frequently Asked Questions) on Warehouse planning and optimisation

Following are some of the frequently asked questions (FAQs) on Warehouse Planning And Optimisation that we have encountered in our speeches, workshops, seminars, and other forums.  Feel free to ask more questions if your particular question is not answered below.

Why we are qualified to write this list of FAQs on Warehouse Planning And Optimisation


VERY FEW PEOPLE KNOW SUPPLY CHAINS LIKE WE DO - retail, beverages, food, milk, dairy, meat, livestock, explosives, chemicals, cotton, rice, graphite, solar power, natural gas, crude oil, fertilizers, electronics, packaging, glass manufacturing, machine parts, automobiles, industrial goods, mining, etc are just some of the industries where boards and executives have benefited from our proprietary knowledge of the supply chains. 

Click on our project methodology above to see how Warehouse Planning And Optimisation is an integral step in each and every project that we have undertaken in the last three decades.Since when no one had heard of supply chain, our co-founder Vivek Sood has been considered one of the most authoritative professionals in the field when it comes to the subject of supply chain analytics in Australia, Asia, North America, South America and Europe.

 He has written four seminal books about restructuring supply chains to gain massive advantage in business. He also regularly delivers keynote speeches at business schools and conferences such as University of Technology Sydney, Supply Chain Asia, Asian Bankers Forum, APEC Business Advisory Council.

He has been quoted in the authoritative business press and over 100 academic papers written by supply chain researchers around the world. Vivek and his team have examined thousands of supply chains during their projects over the last three decades and helped hundreds of executives build safe, cost effective and sustainable supply chains and careers. 

FAQs (Frequently Asked Questions) On Warehouse Planning And Optimisation

What do you mean by warehouse optimisation?

Warehouse optimisation is considered as the process of the use of time, resources,  and space in a warehouse is made efficient through automation and careful planning, improving customer satisfaction and experience.

Which are the factors and process in the supply chain that take impact from the warehouse optimisation?

The following are the factors and process in SCM that take impact from the warehouse optimisation.

  • Inventory management
  • Business growth
  • Cost mitigation
  • Safe workplaces

How inventory management gets impacted by warehouse optimisation?

Warehouses are central to e-commerce success because they store the essential part of the inventory. No matter what type of warehouse you use – in-house or outsourced to a 3PL fulfilment company and the internal processes must be as efficient as possible. Prioritising efficiency ensures timely order fulfilment for the end customer and minimises costs through an effective supply chain. Optimising warehouses allows firms to make the best use of space to create a productive and profitable environment. Warehouse optimisation does not mean sacrificing the quality of service to save on costs.

How Business growth gets impacted by warehouse optimisation?

Regardless of the business the managing a warehouse or has been doing so for years. Warehouse optimisation must guide all internal process. Especially for a novice business, it can help build a vital stepping stone for future success and growth. For companies already with a reliable warehouse, it can assist in upscaling your inventory management strategy and improvising areas that are not performing to their full potential. Besides efficient warehouse operation, optimising workflows also translates to financial benefits. As we know, many things have to go right to fulfil a single order.

How Cost mitigation gets impacted by warehouse optimisation?

However, warehouses de-profits every day by dealing with returns, sending out the wrong shipments and human error. These errors root from one cause inefficient practices. For example, each time an inaccurate load goes out, a business must pay $22 on average in labour costs and customer dissatisfaction. A WMS, coupled with an inventory management system, can address these inefficiencies through barcode scanning to mitigate mistakes

How Safe workplaces get impacted by warehouse optimisation?

It's easy to forget that real people do work in warehouses where material handling equipment such as forklifts and pallet jacks are standard. A warehouse without the architecture to address the movement of these tools and employee safety can ruin staff morale.

Why must the warehouse get optimised?

While some businesses may outsource their delivery and inventory and processing to a 3PL fulfilment warehouse, the safety of employees is the most critical challenge facing warehouse management. The presence of safety precautions such as emergency exits, fire extinguishers and LED lighting can be reassuring and ease the minds of employees.

What are the benefits if warehouse optimisation?

The following are the benefits of warehouse optimisation:

  • The accurate ratio of labour to workload
  • Better planning and forecasting
  • More return customers

How the ratio of labour to workload get benefited from the warehouse optimisation?

A defined organisational structure in which each employee is working to his/her full potential minimises human fatigue and the need to pay overtime in times of high workload.

How planning and forecasting get benefited from the warehouse optimisation?

Being able to plan and predict inventory demands allows to better plan for the future. This data makes it smoother to allocate resources without extra costs.

How return customers get benefited from the warehouse optimisation?

Providing excellent customer service (timely delivery) is one of the key deciding factors when it comes to repeat business. Optimising a warehouse creates conditions in which high-demand items in-demand are always stocked, leading to timely order fulfilment. When all this automation is integrated, it makes a reliable system of flowing inventory, better inventory procedures, and faster packing processes. These all translate to improved order fulfilment rates.

What are the five things to be considered during warehouse optimisation?

Following are the five things to be considered during warehouse optimisation:

  • Understand product velocity
  • Reduce human errors
  • Make use of warehouse management software.
  • Automate shipping routing
  • Invest in robotic technology

Explain the role of Understanding product velocity in warehouse optimisation?

Product velocity is the speed at which certain items sell. Every warehouse will have some products that move much more rapidly, whether it be during special promotions or seasonal. Warehouse design must enable easy retrieval of these fast-moving items.

Explain the role of Reducing human errors in warehouse optimisation?

When human error at a warehouse reduces, warehouse productivity increases, it's the reason why it's essential to automate the iterative task of marking all the merchandise in your inventory. If done manually, accidents will happen regardless of how much training an employee takes. Invest in a warehouse labelling system. Ideally, these labels must be easy to read from a distance and easy to recognise. It should be able to identify them using barcode scanners at a distance to avoid confusion and errors.

Explain the role of Making use of warehouse management software in warehouse optimisation?

Warehouses are places teeming with activity. Labours must complete multiple tasks at any moment, including moving products, packing, labelling, and fulfilment. Instead of trying to optimise for each of these activities separately, integrate your warehouse management software (WMS) with an inventory management system (IMS). This integration enables all tasks to be managed from one unified platform. A WMS will allow managers to keep notes on stock levels and inventory movements, which helps avoid stock control issues and unnecessary overhead. Yet, when combined with an IMS tool, the possibilities for your warehouse are endless.

Explain the role of Automating shipping routing in warehouse optimisation?

An essential step in the order fulfilment process is to ensure that packed goods go to the correct collections area for delivery. Instead of relying on human labour to do this, order routing automation can streamline the process.

Explain the role of Investing in robotic technology in warehouse optimisation?

Warehouses that relay in robotic technology will possess clear, tangible benefits of cost-cutting and increasing efficiency.

What are the upcoming trends in warehouse optimisation?

Warehouse optimisation may sound challenging, but it is a procedure that businesses must utilise to survive. The introduction of new business models, changes in employee needs, and the use of complex technologies will continue to punch the warehouse in the future.

Sink of swim Report: how information technology can save or ruin supply chains

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Notes on FAQs

Clearly, any such list of frequently asked questions (FAQs) about supply chain can never be fully exhaustive. Neither is anyone, including us, the final authority and arbitrator on this or any other topic. 

You will have your own opinions on many of these topics, and will have many other questions. 

We throw open the comments section to you for your opinions and questions. We will try to address all of these, and the best ones will attract a reward in the form of one of our books, or publications. 

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