Peak season is a challenging and demanding time for warehouses as it requires extensive preparation and flexibility. ECommerce businesses saw a huge uptick in 2020 fueled by the COVID-19 pandemic. The Holiday season of 2020 was the busiest yet with a 45% increase in online sales. It is safe to assume that this year’s Holiday Season will be another record-breaker that warehouses need to prepare for.
It is important for businesses to recognize these seasonal trends and be proactive about them. Delays in shipping and handling can lead to negative reviews and a drop in customer satisfaction, whereas an organized warehouse during peak season means increased efficiency and better profit margins. With the holidays right around the corner, now is the time to start planning how your business is going to handle the surge in online sales. Here are 5 tips to help get you started:
1. Use Data from Previous Years
Examining data from previous years can be very helpful in identifying how your orders change during peak times and how to improve upon the shortcomings. Use data to predict the busiest times and order cycles. Some products have much higher demand during peak seasons, whereas demand for others may decrease. Seeing the volume and type of products will help you set up your operation in a way that prioritizes the fulfillment of these products.
Data will also help you figure out employee scheduling. By taking a look at unplanned overtimes and shortfalls in employee hours, you can design a better schedule for the upcoming peak season.
Previous years’ numbers should help you identify pain points and an opportunity to learn from those mistakes. Make sure to keep collecting data and have a system in place to record notes for upcoming years.
2. Optimize your Layout
Your warehouse layout may be working well for your current operation, but as things ramp up you may need to make adjustments to improve your efficiency. Assess the different areas of your warehouse such as shipping, receiving, and storage. For example, you may want to increase the space of your receiving area to accommodate the increase in incoming inventory. Or if you are going to stock up on some products, you may have to increase your storage capacity.
One of the most important adjustments to make is to the location and storage method of the different products. You will need to make certain high-demand products more accessible while moving lesser demanded products to other areas. Also, keep in mind the process of fulfillment for these products, and place them in locations that minimize travel distance between the different workstations. Using wide-span shelving is a great way to store fast-moving, hand-picked products. This type of shelving is also easier to construct and more versatile than pallet rack.
Your layout should also have a flow that allows for traffic to move. You will need to account for the size of products and the equipment needed to transport them and create paths accordingly. Your existing paths may be too small for the additional equipment that you will be utilizing. It is also possible that the paths are too large and that space could be used for additional storage. Make sure that you have a flow that allows for products to be easily moved between different stations.
3. Reassess your Picking Processes
Having a well-designed picking process ensures that customers receive the correct order, quickly. It is arguably one of the most important aspects of order fulfillment. Keep in mind that your picking process may look different during the peak season. It is a good idea to reassess your processes and identify ways to improve productivity. Automating some of the steps and reducing touchpoints is a good place to start. Here are some tips on how on optimizing your picking process:
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Minimize the travel distance: If you have pickers that need to move between different stations, you want to make sure that those stations are close to one another. The zones should be designed around top-selling products.
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Design paths to avoid congestion: Try to create alternate routes for equipment to move to avoid congestion.
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Use automation: Utilize conveyor lines and spread out top-selling items over different zones to create a better flow,
There is also certain warehouse equipment that will help improve your efficiency. Here are some suggestions:
Carton Flow
Carton flow is a type of dynamic shelving system that helps move the product from the back of the shelf to the front with the help of gravity. This type of shelving allows for easy access to products and makes it possible to load the shelves while the picking process continues.
Gravity Conveyor
Gravity conveyors are great for moving products between different stations during the picking process. Like carton flow, they also work with gravity and do not need a motor or electricity to work. Gravity conveyors eliminate the need for employees to walk products between different stations and keep products in order.
Containers & Bins
If you receive a lot of unpackaged items, containers are perfect for organizing them in racks. They help reduce the storage space while making the picking process easier.
4. Check and Protect Your Equipment
Peak season is when you really can’t afford any equipment problems. Now is a great time to perform all preventative maintenance and take care of all repair items. That includes taking care of software updates as well. It is also a good idea to stock up on spare parts, in case something does break.
If you’ve been on the fence about replacing some items, you may want to make that investment now. Just make sure that there is enough time to receive the equipment and train your employees on them. Also, make sure that you have enough of the items that your employees will be using. If you will be hiring temporary help, you may need additional equipment to get you through the season. Certain upgrades such as new loading and storage equipment are worth considering.
Here are some examples of inspections that you can perform and ways to protect your equipment and products:
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Check pallet rack for damage. Ensure that all uprights are secured into the concrete floor and that the pallet rack is stable. Loose posts can result in serious accidents. End of aisle guard rails and post protectors are great ways to keep your pallet rack secure.
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Rack back safety panels protect products from falling off. These will help keep your product safe during peak season
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Another way to protect your products from theft and damage is to install rack supported cages to your pallet rack
5. Plan Employee Schedules and Hiring Processes
Most warehouses need to hire temporary workers to get through peak seasons. Assessing past years’ data will help to figure out your staffing needs. You can calculate the productivity of each employee and figure out how many more employees you need to reach your goals. Examine any unnecessary overtime and understaffing issues from the past.
The shortages in the labor market require employers to be creative in their hiring and retention practices. Many employers are offering sign-on bonuses and other incentives to attract workers.
Prioritize making hiring decisions sooner than later to have adequate time to train all the new staff. You may also want to start them a few days before things get busy, so they have time to adjust and learn. Processes such as picking run a lot smoother if everyone is on the same page.
One of the more effective ways to utilize temporary workers is to give them direct labor tasks such as packaging products. These tasks require less training and experience, and other more planning-oriented tasks can be left to more experienced workers. Also, if the temporary workers will need access to equipment to perform their work, make sure that they will have access to the necessary equipment. For example, if they will be working with barcode scanners ensure that there will be plenty available.
Follow Up After Peak Season
Peak season preparedness is not just about the short-term. This is a great opportunity to improve your warehouse’s efficiency and identify weaknesses. You can use this opportunity to learn from mistakes and create a more efficient and productive operation for next year’s peak season. At the end of each peak, make sure to take notes on what went well and any issues that arose.
American Storage & Logistics is Here to Help
American Storage & Logistics has all of your equipment needs to get your warehouse ready for peak season. Check out our website for new and used inventory. If you need help reassessing your layout, expanding your operations, or adding new equipment, give us a call at 616-246-9800 to speak with a sales engineer.
