THERE IS A HELL! - - - IT IS CALLED RETAIL THE WAREHOUSE | Page 2

THE WAREHOUSE
A key element in keeping a secure warehouse is to eliminate those folks who have no
business being in there.

INCREASE THE RECEIVING AREA

When most people are designing a warehouse, they tend to cram as many racks of
inventory into the space as possible. Usually as an afterthought, they carve out enough
room for a little desk by the dock door, run a terminal to it and call it the receiving
department.
Here’s the problem: Most inventory errors start in receiving. If you make a mistake here,
10 additional problems will occur throughout the depot and the company. Start by giving
them adequate room to work. You’ll see your inventory adjustments decrease
immediately.

PUT SENIOR (AND/OR INTELLIGENT) PEOPLE IN RECEIVING

Why do so many companies always put rookies in receiving? As I mentioned earlier,
mistakes in receiving cause multiple headaches down the line. Make sure you get it right
coming in the ‘first’ door.
Pay your receiving clerks well, and encourage them to stay in the position. Remember,
you’ll always have more products coming in than going out.
Receiving is your one place to get it right the first time so you don’t have to redo orders
later because of receiving errors.

CREATE SIGNAGE

Don’t assume your newer employees can navigate the aisles. Help them out. Create
colourful signs to direct them to aisles or bins. Warehouse maps are a great way to
increase productivity immediately. Clearly label any and all landmarks.
Try this: Ask one of your friends, associates or past colleagues to come into your
warehouse and pick an order. If your warehouse is set up correctly, they should achieve a
high success rate without asking questions on every item. It needs to be that easy.

ADD DESPRIPTIONS TO PICK TICKETS

Most item databases will allow you to add multiple lines of description to any SKU (Stock
Keeping Unit) in the system. Use them and you’ll increase the order pickers’ chance of
pulling the right product.
Put in physical descriptions like "the blue one" or "two wheel." This is especially critical
when you’re talking about minimum quantities. Make it clear that the "each" actually
refers to the pair that’s in the pack, not to one of the two.
This simple change will help you eliminate future dead stock. Don’t worry about killing a
few extra trees. They grow back.

dodie ste®eo p®odu©tion ™

Page 2 of 9