The average picker spends over one hour per day searching for product. If you have eight pickers that's equivalent to one person per day—and extra person that is probably not needed, or can be used doing something more productive. By assigning product to locations this will eliminate pickers searching for product throughout the warehouse.

Step 6: Allow only warehouse personnel to receive.

Receiving is the most important task your warehouse performs. If an item is received incorrectly, it will be putaway, picked, and shipped wrong. If the paperwork is not processed correctly, the wrong product will be received and given to the customer. When the order is generated, the picker looks for the product and can't find it, so the buyer then orders another while saying "Those warehouse guys are clueless. They just received this product this morning. Now they cannot find it." Eventually, shipping sends the order to the client, but meanwhile, the second order comes in , and the buyer decides to receive the product and personally ship it to the customer. If the product is returned because the customer doesn't need it, a sales person will likely say, "Don't send it back to the vendor. The customer will need another one for another job." The product then just sits on the shelf until it is lost or is counted at the next annual physical. Hopefully the first order was corrected because the customer was never billed for the second one, but for some reason you show two items in stock. Another vicious cycle of inaccurate inventory ensues.

Step 7: Address non-stock and dead inventory.

You have to address your non-stocks and your dead inventory. Non-stocks are a hassle and have to be dealt with. They should be counted regularly, clearly identified, and centrally located. Quite often, non-stocks and dead inventory are not addressed until the end of the year, and then management wonders why there are so many.

Dead inventory is usually DOA, "dead on arrival". New items are the major cause of dead inventory. Climbing up ladders to pick orders or relocating because of space issues does not make sense if you have dead inventory occupying floor space. It is a loss of productivity and should be addressed immediately. Simply put, "If it would stink I bet you would get rid of it." Treat DOA the same way. Get rid of it to streamline your warehouse processes

Also remember, a company has to pay cash for the materials and labor that make up inventory, and until the company gets paid, that outlay of money represents a financial burden to the organization. Your product is worth less each day you hold it in inventory—by the time it reaches the customer, you will have lost significant revenue..

The average picker spends over one hour per day searching for product. If you have eight pickers that's equivalent to one person per day—and extra person that is probably not needed, or can be used doing something more productive. By assigning product to locations this will eliminate pickers searching for product throughout the warehouse.

Step 6: Allow only warehouse personnel to receive.

Receiving is the most important task your warehouse performs. If an item is received incorrectly, it will be putaway, picked, and shipped wrong. If the paperwork is not processed correctly, the wrong product will be received and given to the customer. When the order is generated, the picker looks for the product and can't find it, so the buyer then orders another while saying "Those warehouse guys are clueless. They just received this product this morning. Now they cannot find it." Eventually, shipping sends the order to the client, but meanwhile, the second order comes in , and the buyer decides to receive the product and personally ship it to the customer. If the product is returned because the customer doesn't need it, a sales person will likely say, "Don't send it back to the vendor. The customer will need another one for another job." The product then just sits on the shelf until it is lost or is counted at the next annual physical. Hopefully the first order was corrected because the customer was never billed for the second one, but for some reason you show two items in stock. Another vicious cycle of inaccurate inventory ensues.

Step 7: Address non-stock and dead inventory.

You have to address your non-stocks and your dead inventory. Non-stocks are a hassle and have to be dealt with. They should be counted regularly, clearly identified, and centrally located. Quite often, non-stocks and dead inventory are not addressed until the end of the year, and then management wonders why there are so many.

Dead inventory is usually DOA, "dead on arrival". New items are the major cause of dead inventory. Climbing up ladders to pick orders or relocating because of space issues does not make sense if you have dead inventory occupying floor space. It is a loss of productivity and should be addressed immediately. Simply put, "If it would stink I bet you would get rid of it." Treat DOA the same way. Get rid of it to streamline your warehouse processes

Also remember, a company has to pay cash for the materials and labor that make up inventory, and until the company gets paid, that outlay of money represents a financial burden to the organization. Your product is worth less each day you hold it in inventory—by the time it reaches the customer, you will have lost significant revenue..