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Six Swords of Warehouse and Logistics Management, Helping to Reduce Costs and Increase Efficiency!

Introduction

Look at the comparison between China's warehousing and logistics management indicators and the world benchmark data: the proportion of Third-party logistics in China is 19%, and that in Japan, the world benchmark country is 80%; The logistics cost accounts for 14.6% of GDP in China and 7.2% in the benchmark country America. In general, the logistics cost accounts for about 30% of the total operating cost of enterprises. The use of Third-party logistics can reduce the warehousing logistics cost by 20% -25%. "It's a surprise if you don't know it," which shows that China has a large potential gold mine to be mined.

This article will introduce the six swords of warehousing and logistics management, reducing the huge waste in warehousing and logistics management. If you are interested, let's take a look together~


The First Sword: Only through Cooperation Can We Win More - Excellent Supply Chain and Warehousing Logistics


The second sword. Layout determines the outcome - Planning and management of warehousing and logistics


As the saying goes: You cannot be poor in food, you cannot be poor in clothing, and you cannot plan to be poor for a lifetime. What we are talking about is the importance of planning. Modern enterprises pursue lean management, and the concept of lean management is to eliminate waste. The first step of management is planning. If the material warehouse of the enterprise is far from the first process, the external warehouse is far from the customer, and the finished product warehouse is far from the last process..... What situation will these situations lead to? It will definitely make the transportation distance far away, and transportation is an activity that does not generate value, which is also a waste.

There is often a phenomenon of a large number of supplier delivery trucks waiting in line at the entrance of some enterprises, as well as waiting due to insufficient loading and unloading platforms, and some enterprises' irregular storage of goods, which requires a long time to search. These are all waste caused by lack of planning.

According to the lean concept, the handling of goods should be carried out with the shortest distance and no turning back, which is in line with the lean concept and prevents waste from the source. The delivery time of suppliers should be planned, and the loading and unloading platform should be calculated and planned based on the loading and unloading quantity. The storage space, shelves, and placement area of materials should be calculated based on the annual usage of materials, usage frequency, and material characteristics.


The Third Sword: How to Hide Delicate Things in a Golden House - Daily Operation and Management of Warehousing


Why is it so convenient and fast for us to find the products we need when we usually go to the big supermarket to buy things? The key to saving us a lot of searching time is that the product area and category identification in the supermarket are particularly clear, and the status and category identification of warehouse materials should be learned from the supermarket.

As the saying goes: seek medical attention in case of emergency. Many enterprise warehouses often experience abnormal phenomena such as emergency procurement, emergency production, and emergency shipment due to discrepancies in material accounts and cards, which can lead to serious product defects, waiting, and high price procurement waste. Why do these phenomena occur? The essence is the lack of clear identification and standardized inventory system implementation. Divide storage areas according to product categories, create floor plans, inventory identification cards, store in a standardized manner, and ensure consistency between accounts, cards, and items by combining regular and circular inventory.

A large number of obsolete products will occupy funds, and the cost of inventory and personnel management will significantly increase, leading to waste. The reasons for the occurrence of obsolete products may come from departments such as design, production, procurement, logistics, etc. It is necessary to determine the causes and eliminate them. For obsolete products, new product design, barter trade, modification processing, and other methods can be used to deal with them.


The Fourth Sword: Winning Circulation Speed - Warehouse Logistics Circulation Management


Why does the epidemic have a huge impact on the economy? The key is that the virus prevents the flow of personnel, materials, products, etc. The longer a product stays in the enterprise, the more waste it means. How to quickly circulate? We need to standardize the process to seamlessly connect the processes of receiving, shipping, and replenishing materials.

The poem goes: "I searched for her thousands of times in the crowd, and suddenly when I look back, that person is in the dim light This is the romance of life. There are many types of materials in enterprises, and there cannot be a lot of searching time. How to quickly find the necessary materials? A detailed shipment plan can be prepared, and the principle of first in, first out should be followed when storing materials. Automated warehousing systems can be used, or traditional warehouses can combine location based storage with random storage, and the combination of fruit picking and sowing methods can achieve rapid material distribution and rapid circulation.


The Fifth Sword: Zero Inventory Like Gold Mine - Warehouse Management and JIT Inventory Control

A quick grasp of eyebrows and beard often leads to a lack of focus. In the operation of enterprises, there are many types of materials, including high value and high quantity, and low value and low quantity. Therefore, ABC classification management is required for materials. Control the inventory quantity from the procurement process, using a combination of batch ordering and regular ordering, and calculate and set a reasonable safety stock quantity for ABC products based on the actual usage quantity and the supplier's procurement cycle. This can avoid the occurrence of production stoppage and waste caused by out of stock, as well as the occurrence of stock explosion caused by unreasonable procurement plans.

In addition, the current competition is in the supply chain, and managing inventory by suppliers to reduce the company's inventory quantity is a good way. This needs to be established on the basis of full trust with suppliers and the principle of mutual benefit. While allowing suppliers to pay inventory costs, they must also benefit from long-term cooperation in order to achieve long-term win-win cooperation.



The sixth sword: Power comes from assessment - Performance assessment and improvement of warehousing and logistics

As ancient sages and sages once said, 'No one can err without being a saint.'. Therefore, there are problems in the operation of any enterprise, and not seeing them is the biggest problem. Identifying problems and analyzing their causes, developing improvement plans based on the causes, and preventing problems from recurring are the ways to reduce waste.

Doing more and doing less, doing good and doing bad has made it difficult for state-owned enterprises to sustain their operations in the past. What is the key to improving enterprise performance and enhancing personnel's work enthusiasm? Setting reasonable performance evaluation indicators is the key. According to the responsibilities and authorities of departments or personnel, setting corresponding KPIs for evaluation and linking them with performance evaluation can fully mobilize personnel's enthusiasm and initiative.

There is a poem that goes: the fragrance of plum blossoms comes from bitter cold, and the edge of a sword comes from sharpening. Through the characteristics of the several swords introduced above, if we fully understand their characteristics, characteristics, management keys and methods, and persist in using them, the company will overcome obstacles and overcome obstacles all the way!


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