6 Steps in Improving Warehouse Inventory Management

warehouse management system

Inventory is a critical aspect of every business plan, and inventory control can make or break a company. This is why entrepreneurs place such a high emphasis on inventory management. Inventory management at a warehouse is all about efficiency and effectiveness. With the proper techniques and technology, you can up your inventory game. Improved inventory management may save you much money on your profit margin. Moreover, these savings make a significant difference in the business. Here are some pointers to assist you in learning warehouse inventory management.

Reduce Energy Consumption

When running a warehouse, you must always keep the bottom line in mind. Cutting expenses is one of the most efficient ways to boost profit margins. What better way to save money than to reduce your electricity bills? Utility costs are likely to be a higher monthly expense. There are several methods for lowering your facility’s power use. You may make a long-term commitment to cost reduction in your organization by doing the following.

  • Replace Appliances: Outdated appliances such as heating, ventilation, and air conditioning (HVAC) systems usually consume higher energy and thus cost higher bills. You must therefore go for heating and air compressor installation replacing the old one. However, you must call only an expert to do the procedure. That’s because they are familiar with CFM, portability, horsepower range, and other factors that need attention. It helps ensure proper ventilation while keeping the energy bills lower.
  • Roofing: Many warehouse roofs absorb much heat, which puts pressure on the air conditioning unit to work harder to cool it. You can start a rooftop garden or put reflective panels to deflect sunlight before it reaches the roof.
  • Solar Panels: Solar panels pay for themselves. It significantly reduces your facility’s use, and government grants or rebate programs could help you.


Working in a warehouse can be risky for the workers. There are dangers of falling stock, injury from machinery, fire, others. The accidents are not only the tragedy of the workers, but they can immensely hamper the unit’s reputation. Hence, the assessment of risks and working challenges is critical.

If it is not feasible, you can utilize other techniques to reduce the risks, such as employee safety training and the purchase of personal protective equipment. Reducing traffic movement and keeping vehicles apart can be a good idea.

5S Methodology

5S is a method of structuring a workspace to make it more efficient, effective, and safe to work in. It stands for sort, set in order, shine, standardize, and sustain. A complete process definition, including identifying who owns each aspect of the process, is required for the 5S deployment.

It identifies issues, develops solutions, and establishes accountability. Here, employee participation becomes an essential aspect of the process of continuous improvement. This methodology reduces wastes, lowers costs, and increases the productivity of the unit.

Cross Docking

In the cross-docking method, the goods from a supplier are directly shipped to the customer without any handling time. It is a form of supply chain management, which reduces the shelf storage time of stock. Cross-docking entails unloading commodities from an incoming vehicle before putting them onto outbound Lorries or trucks as soon as possible. Not for all, but it is ideal for a specific stock, providing various benefits. That includes minor damage, reduced costs, reduced delivery time, improved product quality, less material handling, and reduced footprints.


It will help if you put a label on the products that are present in the warehouse. Goods received should have a label applied to them before they even moved into your warehouse. Labels usually include a stock-keeping unit (SKU) number of Universal Product Code (UPC).

These labels make it easier to identify the product. The shipping and picking get more manageable for the workers, which lessens the mistakes. Moreover, a bar code enables identification using a scanner and captures data of stock movements using an integrated management system (IMS).

Information Technology

The quantity and quality of technologies available to help warehouse inventory management are constantly improving. There are countless software applications to choose from, whether you are a small, developing, or multinational corporation.

Warehouse Inventory Management Software is a critical piece of equipment for every warehouse regardless of size. A sound system allows you to keep track of inventory entering the warehouse and manage stock locations and movements inside it. You can use it for creating orders, picking instructions, tracking stocks, and shipping movements.

The most crucial benefit that inventory management software provides you is access to your data and analytics. It allows you to gather insights on how to grow your business better.

Managing a warehouse inventory can be difficult without any prior planning. You should make sure that you use ways to save energy and reduce costs. Therefore, these are some steps you should follow to maintain better warehouse inventory management.

Share this post:

Be the first to know!

When we upload new topics and more

    Scroll to Top