11/7/24, 11:43 AM 11 Warehouse and Distribution Center Best Practices

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Warehouse and Distribution

Center Best Practices
Last Updated July 26, 2023

Distribution centers are the rock of the supply chain.

Evolving from warehouses and throughput centers,

distribution centers are driven by technology and focus on
relationships with suppliers and customers. They provide
transportation, labeling, and packing, order fulfillment,
cross-docking, order preparation and processing, shipping,
receiving, performance measurement, returned goods
processing, as well as whatever other processes external and
internal departments and stakeholders need.

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Safe and efficient practices are necessary to reduce errors,

labor and cycle time, and increase accuracy and service. PHONE MENU

Below are some guidelines distribution professionals should

keep in mind:

Track Everything

Tracking all material moves and making sure that everything

is put away in the right spot, from the rack to shelving, is
essential. Scan all destination locations, assign locations
close to pick slots where the product will be needed next
and put fast-moving items in areas that are easy to access.
Any step that cannot be tracked or recorded in the
transaction should be eliminated or placed on a list of
movements to fix.

Automate Data Collection

Recording data automatically can increase productivity and

accuracy, and lower labor costs. Capturing real-time
information using bar codes and radio frequency
identification tags can get products off the dock quickly and
reduce human issues typically caused by manual receiving,
such as counting and data errors, from the tracking process.
Automatic data collection also increases historical
information, which allows managers to change product
locations based on order consistency and picking difficulty.

Synchronize Data

Synchronizing all real-time data captured in a warehouse

management system (WMS) improves company visibility
and streamlines data integration. In addition to tracking
SKUs, storage types and other warehouse data, using the
appropriate scan validation steps is also essential to
maintaining inventory accuracy.

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Increase Visibility of Operations

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All of this tracking, collection and synchronization data

increases the visibility of warehouse operations across all
departments. Using a WMS and any additional solution such
as Enterprise Resource Planning software can help facilitate
access to data.

Implement Vendor Compliance Programs

Require suppliers to provide detailed information like

standard case quantities, advanced shipment notifications
and accurate labels, such as RFID tags or barcode labels, for
incoming shipments. Vendor compliance programs require
distribution centers to collaborate with suppliers on
merchandising and procurement. Companies will sometimes
hire a vendor compliance manager to measure and monitor
supplier performance.

Streamline Picking Processes

To increase productivity, implement order picking strategies

that can save travel time. Mapping routes based on time
and distance using WMS technology can identify the most
efficient route, or analyze facility maps to align with
strategy.

Minimize Manual Steps Needed

Creating automated lines through robotic assistance or

physical space improvements can help decrease the manual
steps needed. The use of a shipping carton instead of a tote,
implementing print-and-apply labeling systems, offering in-
motion weighing and manifesting, having semi-automated
and automated sealing/taping stations can all reduce
employee touches.

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Use Cross Docking

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Cross-docking reduces material handling and warehouse

storage time because products are shipped out shortly after
arriving at the dock. Loading products from one
transportation to another bypass warehousing and
stockpiling by sorting the products in a staging area before
reloading them directly onto the next vehicle.

Focus on Warehouse Replenishment

Use information system and structured movement

processes to replenish warehouse stock. Defining both
receiving process and stock locations can lead to time and
cost savings.

Emphasize Employee Training

Having well-trained and cross-functional employees

support a more productive work environment. Employees
need to be well-versed in the right processes and skills,
especially safety operations. Going beyond training
employees on machinery and creating organizational goals,
making metrics for individual performance and team
efficiency goals can help each employee feel responsible for
the part played in the complex processes at work in a
warehouse distribution center. Employees will also feel
motivated to become more efficient at their tasks, which
enhances the productivity of the company.

Learn More About Education Options For Your Team

Maintain Proper Lighting

Although this is a simple issue, distribution centers are

known for having limited lighting. Proper light distribution
can improve any operation by reducing inaccurately picked

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11/7/24, 11:43 AM 11 Warehouse and Distribution Center Best Practices

inventory and incorrect product placement as well as

preventing staffing issues, safety issues, shipping halts, and PHONE MENU

potential lawsuits.

Other best practices to use in warehouse distribution

centers include the following:

Schedule simultaneous shipments

Practice ongoing cycle count
Implement dynamic sorting
Consider using a labor-management tool and an ERP
system
Prioritize security

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