Warehousing Operations And Data Statistics Are Inseparable?

06. 12, 2020

Logistics and statistics are inseparable. The management of effective logistics requires qualitative statistical data. Everything in the warehouse is closely related to the supply chain, and what you do on one end will have an impact on the other. For example, commonly used industrial shelves.

The Pallet Shelf Supplier pointed out: You need to use statistical data to assess the cost of different stages of the supply chain, and evaluate the most effective logistics related to service and sales. Sometimes many company decisions are based on assumptions and feelings. This should be reprimanded. Even if we have been studying statistics throughout our lives, we cannot make statistical assumptions. We must rely on statistics and facts to make decisions.

Therefore, it is extremely important for commercial storage shelves to establish good systems in the supply chain and inventory management. These systems have the potential to collect and analyze data, which is the basis for decision-making.

The decision needs to consider all the benefits of the sales department and the logistics department, and make a compromise and balance with the economic results. The sales department wants to always have inventory, so their service efficiency can reach 100%, which is obviously impossible. Supply chain managers also want to have efficient services but also want to reduce inventory costs as much as possible. Warehouse managers want to cost reduction and good efficiency and quality.

Pallet Shelf

Pallet Shelf 

Based on the above, this is a common situation. Supply chain managers must increase the inventory turnover rate, so the cost of inventory will decrease. However, the warehouse will have more orders and tasks, and warehouse transactions provide more steps, which will require more time and therefore increase labor costs.

In this case, the most important thing is to analyze the cost of each process in the warehouse and prove that the statistical differences in warehouse transactions are very important. With the help of statistical data, it was proved that they caused an increase in warehouse costs. Senior managers have a responsibility to understand this and realize what the consequences are. There is no right or wrong, but every decision will have consequences. Not sure if it provides huge financial support for increasing inventory turnover. It is also uncertain whether inventory costs will decrease, and lower inventory costs are usually more complicated than that.

The same is true for outbound orders. Sales hope to be able to continuously order and deliver products as competitive as possible from the warehouse, and there is only one type of order, which can also be used as often as needed. Warehouse managers want to increase efficiency and reduce labor costs. It is important to consider the consequences and be able to explain their impact. You must be able to spend costs on every warehouse transaction and use statistics to show the differences. If you let go of the restrictions of the order structure, such as the number of orders and the order of each order, the efficiency of the warehouse will be greatly reduced. Importantly, senior managers also know that the labor cost of the warehouse will increase, and you may have to invest more hardware in the warehouse. If you analyze statistics and spend costs on every transaction in the warehouse, then you can provide a basis for senior management to understand their consequences before making a decision.

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