This is an exciting - and challenging - era for manufacturing warehouse business. Today, as higher transportation costs drive more leasing activities, warehouse managers are desperately using and giving full play to the existing space. According to CBRE, the number of industrial leases in the United States, including renewal, reached a record last year. As of July 2021, about 590 million square feet will be rented out, 52% higher than the previous year.
Despite this growth, the productivity of the warehousing and storage industry fell by 7.6% last year. This can be largely attributed to the pain of growth, as companies such as manufacturing warehousing companies try to increase warehouse capacity and new technologies while improving employee retention and safety.
Five challenges faced by manufacturing warehouses
Let's take a look at the five challenges that manufacturing warehouses are trying to manage and solve.
(1) Warehouse capacity
Many warehouses and distribution centers are built according to the needs of enterprises during construction. Of course, the manufacturing industry is always developing, and the industry is experiencing high growth. One of the side effects of the booming manufacturing industry and the rising transportation costs is that the warehouse space is not enough. There may be no land space for expansion at all, or the rise in real estate prices makes it difficult to finance expansion.
Forbes wrote in a recent report: "... As it is impossible to get more space, the only solution is to raise. This is driving new elevated mezzanine and shelf configurations". In addition to being re used through the narrow distribution center, "materials are being re used through the narrow distribution center". In order to seize the business in this upsurge, the manufacturing warehouse can expand vertically rather than horizontally by installing customized storage solutions, using pallet shelves, industrial shelves and other materials matching the warehouse layout, so as to improve the storage capacity and efficiency of the manufacturing industry.
(2) Inefficient manufacturing warehouse layout
Although some warehouse managers try to create more effective use space, they are not always successful. A survey conducted by logistics management shows that the average use capacity of the warehouse is only about 68%, which can sometimes be attributed to the ineffective use of space. While maximizing vertical space and reducing walkways are certainly helpful, other optimization techniques include:
● make the products in the warehouse easier to access.
● classify inventory in a systematic way.
● use warehouse simulation software to create a 3-D model of optimal arrangement according to the size and measurement of your warehouse and inventory; Some manufacturing warehouse management software have provided this technology
● implement an automated storage and retrieval system (as/rs) to automate your delivery and picking processes to improve speed and efficiency.
● another impact of inefficient manufacturing warehouse layout is poor inventory management. By improving the layout, you can reduce opportunities for employees.
● look for items in the wrong place.
● store accounts receivable in the wrong place.
● accept orders for items not in stock.
● reject orders for items actually in stock.
(3) A changing workforce
According to the American Chamber of Commerce, all sectors of the economy are facing a shortage of workers, with more than 10 million jobs vacant in June (the number continues to rise). Of course, this also affects the storage industry of manufacturing industry. With the sudden growth of the logistics industry, more companies are trying to expand, which means workers have more job options. Inbound logistics reported that nearly 65% of warehouse managers surveyed said finding, training and retaining qualified warehouse employees was a challenge. Lack of staff or unskilled staff will increase labor costs, slow business growth and damage the company's reputation among customers.
Changes in the demographic structure of the workplace also played a role. According to cyzerg storage technologies, millennials make up a large part of the workforce, and their goals and values are different from those of the previous generation. Suggestions to attract young people include allowing potential customers to fill out applications through mobile devices, interacting with hiring managers or other employees on social media, and learning more about the company's values through blog posts.
Finally, manufacturing warehouse managers who cannot find new talent may have to consider how to improve the productivity of existing employees. This can be achieved by maximizing storage space and improving the organization, which can reduce employees' walking and search time and ultimately improve performance time (better organization will also make it easier for you to train when you find new employees). Automation can also increase the speed of employees and help take over jobs when employees are scarce.
(4) Employee safety
The warehouse can be a dangerous place. Accidents on the dock or accidents involving forklifts, conveyor belts, material storage and manual lifting may lead to injury or even death. 25% of industrial accidents occur at loading terminals, while forklift accidents cause nearly 35000 serious accidents every year.
In addition to the devastating impact on the injured and their families, manufacturing warehouse accidents also affect the enterprise itself. Warehouse accidents cause a loss of 95 million working days per year, resulting in loss of productivity, worker compensation claims, decreased employee morale, damage to goods, and potential OSHA fines. In order to ensure that accidents are kept to a minimum and warehouse employees remain safe, manufacturing warehouse companies need to regularly track potential maintenance problems throughout the facility and consider installing safety facilities, such as wharf alarms, lighting and safety doors; And shelf net, end protection device and tray support rod. Download our warehouse safety checklist here.
(5) Technique
Digital transformation is preparing to change warehousing, distribution and fulfillment forever. Automation improves efficiency and makes holding just in time (JIT) inventory more practical. This allows the warehouse to reduce or diversify on-site inventory, providing more flexibility when demand changes and inventory needs change rapidly. In addition, automated solutions such as flow sorting improve the accuracy and timeliness of store replenishment and give the warehouse more time to make necessary adjustments.
Then there is the robot, which is defined as "a machine similar to human beings and performing tasks according to instructions". Although they may still seem a bit too sci-fi for some warehouse facilities, they will not disappear. Today's robots are getting cheaper and more accurate. They can complete more complex tasks while reducing product damage; Many robots also have sensors and cameras that enable them to automate more processes. Therefore, the global warehouse robot market continues to grow and is expected to reach US $9.1 billion by 2026, with a compound annual growth rate of 14%. Some of these robots include cooperative robots. These "collaborative robots" are designed to work safely with warehouse employees to deal with more dangerous tasks while improving operational efficiency
Due to the cost of adopting new technologies, manufacturing warehouses must really understand their needs and the expected objectives of any new technology, because each technology is different, including various functions. You should weigh the pros and cons to ensure that you can see a healthy return on investment in the shortest time.
