5 Helpful Warehouse Audit Tips For Greater Warehouse Management

When your warehouse is constantly filled with inventory, it’s easy to take the space for granted. After all, a well-organised warehouse should be a non-negotiable part of any supply chain. With that in mind, you might believe that it isn’t much you can do to optimise your space further until more exceptional measures are necessary. However, as most seasoned logistics professionals know, great warehouses aren’t built; they are made by taking every precaution possible against issues that can arise from seemingly unimportant details. Unless you have worked in a warehouse before, you may not be aware of how susceptible they are to issues such as insecure entry points and insufficient visibility, both of which can lead to theft or employee accidents. These problems are common in many warehouses because they require an excessive amount of upkeep and auditing to maintain quality control standards.

1. Plan Before You Act

Before you start any warehouse audit, you should have a plan of attack. This will help you prioritise what needs to be taken care of first and what can wait until the end of the audit. Be sure to include all safety issues in your audit plan as these are non-negotiable.

2. Count Physical Goods

One of the first things you want to do is get an accurate physical count of all inventory in the warehouse. This will let you know if any items are missing or if there are unaccounted items that are not supposed to be there. Having a physical count done on inventory can be tedious, but it will give you the most accurate picture of what the warehouse contains so that you can start planning your moves from there. If you are counting inventory on a regular basis, you will be able to notice if something is missing. If there is a discrepancy between what is supposed to be in the warehouse and what is there, then you can start an investigation right away. For accurate inventory counts, you'll want a good warehouse management system (WMS) in place. With proper inventory tracking, you’ll be able to track discrepancies and investigate where the problems are arriving from.

3. Analyse Inventory Data

Now that you have a physical count and have observed operations, it’s time to analyse your inventory data. You may already have some of this data on hand, but there may also be data that you have yet to receive. Depending on your company, you may have data that includes the item name, quantity, and location. There may be other data that is specific to your company that is in a different system. You may want to consider getting everything in one system so that you can use the data from all sources. This will allow you to see everything in one place and make it easier to analyse data. Every modern warehouse should be dependent on WMS for data analysis. By utilising this software, you can analyse inventory records to check for fraud, and waste, validate transactions, and measure customer satisfaction.?

4. Observe Operations

The next warehouse audit tip is to keep an eye on operations once you have finished your count. If you see any areas where employees are struggling with the current processes, then you should try to figure out a way to solve them. For example, you may see that employees are having trouble keeping track of what inventory goes where. There may be a tagging system that is no longer relevant, or there may be a location that is no longer functional but is still being used. You may also see that they are having trouble keeping track of their progress on tasks. This could be due to the space they are in or their tools not working as they should. Assure safety compliance and maximum efficiency. You do not want to be hit with fines or lawsuits from injured employees. Health and safety warehouse procedures should come first.

5. Evaluate Staffing Levels

Now that you have your inventory data and have counted your items, you can evaluate staffing levels. This will help you determine whether you need more people in the warehouse or if some of your employees need more training. If you have new equipment or procedures that you want to implement, then you will also want to evaluate your staffing levels now. This will allow you to have everything in place before you start counting inventory. You may also need to hire more people depending on your annual growth or other factors within your company.

With help from a WMS, you can drastically reduce money spent on your workforce while simultaneously improving productivity. Labour can be divided into three categories: direct (receiving, put-away, picking, replenishment), indirect (supervision, training, inventory control) and administrative (inventory management, order planning, customer service, data entry). Those three groups are all tied together and the right WMS will reduce labour costs at every tier, resulting in substantial cost savings throughout the operation.

Summing up

Warehouses are always in need of audits. This is why it is important to do them on a regular basis to make sure everything is running smoothly and according to plan. By doing audits, you are able to see if there are any issues or problems with your warehouse so that you can take care of them before they become major issues. Getting started with these tips can help you be sure your warehouse is in great shape!

About us

Speak to one of our team to understand how?Clarus WMS?can cost-effectively support best practice warehouse management processes, better customer service and highly efficient working for a range of warehouse operations with pay-per-month options and no IT infrastructure needed.

Our platform can scale from a one-user, small depot system to a 100’s user distribution centre operation. The?Clarus WMS platform?will cost-effectively scale with your business based on demand.

ClarusWMS?is a UK-based supplier of warehouse management solutions with a wealth of industry experience in?third-party logistics,?wholesale/retail distribution,?online fulfilment?and?manufacturing warehousing.