Warehouse and Logistics Optimization

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Warehouse and Logistics Optimization

Logistics is an activity that deals with overcoming space and time with minimal costs.

The purpose of logistics is the continuous improvement of the flow of goods and information through companies, aiming to reduce inventory, streamline the flow of products, and shorten reaction times.

Logistics represents a management process that encompasses the entire flow of resources, from procurement, transportation, storage, all the way to delivery to the final destination.

The goal of modern logistics is to have the right amount of resources at the right time at the right cost and to deliver resources to the end customer in the right place and condition.

Companies cannot achieve goals such as increased turnover and resource turnover if logistics cannot follow processes and recognize issues in a timely manner.

Regardless of the fact that logistics does not directly impact sales, if a company achieves these goals, the indirect impact of logistics on sales will be significant, measurable, and enable greater competitiveness in the market.

After achieving goals such as increased sales and resource turnover, the company has reached modern and contemporary logistics capable of responding to all challenges in day-to-day operations.

Service Overview

1. Recording Current Processes

We spend time with you at each workstation in the warehouse to record the current processes. Based on the gathered information, we define your real needs, making the first step significant.

We monitor the steps of procedures and identify various issues that employees encounter at their workstations. In communication with relevant individuals, mostly managers, we go through current processes and assess the effectiveness of processes and employees. It is helpful if there are certain measurements and regular analyses.

After documenting the processes and noting inconsistencies, we move on to the next step.

2. Recognizing Needs and Finding Inconsistencies

In this step, we highlight inconsistencies defined in collaboration with employees and analyze existing measurements.

Through previous steps, we have gained insight into the current state of your warehouse, and at this point, we have all the necessary information to propose solutions.

When proposing solutions, it is essential to emphasize improvement of warehouse processes, taking into account the current financial resources of the company and minimal investment. Additionally, we consider potential hardware and software investments to enhance the efficiency of your warehouse. It is important that the benefits of technology are manifold compared to the investment.

3. Solution Proposal

The solution proposal is a crucial step where you, as the client, play a decisive role. It is time to decide in which direction we continue with further optimization of your warehouse.

After documenting proposals for optimizing and improving the warehouse and processes, we send you suggestions for approval.

4. Implementation of Accepted Solutions (Processes + IT -> Software + Hardware)

Implementation represents the realization of approved conceptual solutions. We set up measurements for continuous monitoring of process efficiency and employee performance.

If your decision involves investing in hardware and/or software solutions, we are available as coordinators between the warehouse department and the selected partner for implementing business solutions.

Throughout the process, we take care and focus on the realization of the agreed investment.

5. Process Documentation

Without clearly documented procedures, control over newly established procedures will be lacking in a short period, thus preventing the realization of the full potential of the implemented changes in warehouse operations.

For this reason, after implementation, the final step is documenting procedures. The most common purpose of procedures is to educate new employees and serve as guidelines for daily operations for other staff.

6. Process Control

After the documentation of procedures, the warehouse and logistics optimization project is completed. However, for the control of the implementation and functionality of agreed procedures in practice, we recommend periodic checks – audits of the implemented changes.

The time intervals for control, as well as the control-audit itself, are agreed upon according to your business needs, preferences, and possibilities.

The control-audit is conducted in the form of thematically posed questions related to the implemented changes in logistics and warehouse operations, potentially with additional questions based on your suggestions and needs.

For a company, it is crucial to timely recognize various challenges that logistics faces in today’s business, in order to be prepared to confront and overcome them with minimal losses.

Some of the everyday challenges in logistics that you potentially encounter in your daily business include:

– Inventory turnover and storage of slow-moving goods

– Lack of space in the warehouse

– Loss of control over logistics processes (during the inflow and outflow of goods) and inventory status

– Frequent overtime work of employees

If your business is constantly “in the red,” and logistics department employees are consistently missing deadlines, unable to perform tasks on time, demanding the hiring of more staff, larger storage space, more time to complete tasks, and errors have become an everyday occurrence, it’s time for concrete changes and business optimization.

Increasing warehouse space and the number of employees, as well as extending deadlines, undoubtedly brings improvement, but it does not represent a long-term solution for the company; it is only a temporary solution to the situation with additional costs, and there is a high probability that the same problems will reoccur in the near future.

One of the most important aspects concerns the proper storage of goods because storage costs are relatively significant compared to the total costs of the company.

Proper storage is crucial as improper storage can result in damaged goods, increased operating costs, and potential issues with various inspections. Additionally, during storage, various losses can occur, depending on the nature of the goods, storage conditions, and mishandling of the goods. Proper storage helps preserve goods from adverse effects, spoilage, or losses.

One important factor in the storage process is storage optimization, which includes all the processes needed to efficiently take over goods in the warehouse, arrange them correctly, and deliver them to end users.

Modern business requires the application of a process approach with extensive use of information technology and the creation of a customer-oriented business process model.

Sometimes it is necessary to change perspective and view problems from a different angle, and in that regard, as a company specialized in business process optimization and improvement, we can certainly assist you.

NOS d.o.o. for business consulting can help you optimize your warehouse and logistics, achieving multiple benefits for your company through the following main steps:

  1. Recording current processes
  2. Identifying needs and finding discrepancies
  3. Proposal of solutions
  4. Implementation of accepted solutions (Processes + IT -> software + hardware)
  5. Documentation of processes
  6. Process control

Optimizing warehouse and logistics is a complex and demanding task, but it brings numerous advantages:

– Accelerating logistic processes from the entry to the exit of goods

– Standardizing logistic processes

– Documenting logistic processes

– Establishing measurements and control of the efficiency of processes, employees, and departments as a whole

– Reducing costs in the warehouse

– Increasing warehouse capacity

Optimizing warehouse and logistics is a complex and demanding task, but it brings numerous benefits:

Acceleration of logistic processes from the entry to the exit of goods.

– Standardization of logistic processes.

– Documentation of logistic processes.

– Establishment of measurements and control of the efficiency of processes, employees, and the department as a whole.

– Cost reduction in the warehouse.

– Increased warehouse space capacity.

Contact Us

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    info@nos.hr
    +385 01 64-385-64