How to Optimize Your E-commerce Warehouse

22 August 2022

If you have an e-commerce warehouse and want to improve your customers’ shopping experience, it’s time to put the suggestions presented in this text into practice. Take a look below.

Have your company’s online sales grown significantly compared to last year? How have you handled the high demand? Are orders processed quickly in the warehouse, without errors and rework? Does the customer receive the product within the agreed timeframe? What is your current logistics cost? These questions may seem simple, but they lead you to an important reflection. When you realize that you are not providing the best service to your customer or that current costs are preventing the company from growing, there is a clear signal that your warehouse needs to be optimized.

Often, when starting an e-commerce business, the main concern is focused on the sales website, marketing, and communication channels with customers. But what is the point of having an excellent sales platform and communicating well with buyers if products arrive late, if there are errors in deliveries, or if logistics costs are so high that they affect the company’s profitability? Taking care of logistics is therefore essential for the success of your business.

Do you want an example of someone who has already done this masterfully? Mercado Livre has increasingly invested in building and modernizing its distribution centers, aiming to be closer to customers and deliver within 48 hours. The company’s logistics have been so successful that it has taken over the delivery of almost all the products sold. According to CNN, three years ago, 95% of Mercado Livre’s deliveries were made by Correios, while today only 5% are transported on this route.

Another player that is a global reference in efficient logistics is Amazon. Inside the company’s warehouses, what we see is a lot of automation and smart technology so that orders are processed and shipped quickly. Those who are already customers of companies like the ones mentioned know how much quality and agility make a difference.

That’s why we strongly say that you can’t wait one or two years to optimize your e-commerce warehouse. Changes must occur as soon as possible, as we are talking about a rapidly expanding market that will offer great opportunities to those who already place the customer at the center of their business. You should start now, and to help you, we bring you valuable tips that will make a difference for your warehouse.

Optimize the e-commerce warehouse in practice

As we highlighted, for your e-commerce business to succeed, you need an efficient warehouse. This means that processes – from receiving, storing, picking, packing, to shipping – must be agile and assertive. Additionally, it is important to make smart use of warehouse resources (people, equipment, and area) to reduce costs. Below are some actions you can take to have a more productive e-commerce warehouse.

#1 Organize the warehouse layout

When you properly utilize the storage area, assigning products to the best positions, following storage and rotation rules, you automatically benefit from task execution and reduce storage costs. Optimizing the layout allows employees to pick orders faster and, consequently, helps enable next-day or same-day delivery. Not to mention that an organized layout helps you make the most of storage space.

You can achieve even better results by optimizing the layout when using the WMS system. This is a solution that allows you to have full control of warehouse operations, including layout management, storage, picking, shipping, and much more.

#2 Automate processes

Automating warehouse processes can significantly reduce the time required to complete tasks. This can be done through the use of technologies such as robots, automatic transport systems, and advanced warehouse management software. For example, robots can be used to pick and move items within the warehouse, thus reducing the need for manual labor. Additionally, automatic transport systems can be used to move items between different areas of the warehouse more efficiently.

An advanced warehouse management system can help you monitor and manage all warehouse activities in real-time, allowing for greater visibility and control. This can help reduce errors and improve the overall efficiency of the warehouse.

#3 Use efficient picking and packing

The picking and packing process is a fundamental part of warehouse operations. To speed up this process, it’s important to organize the warehouse to make it easy to find and pick items. Also, use efficient packing methods to reduce the time needed to prepare orders for shipping.

A common strategy is to use a batch picking system or a wave picking system. These systems allow you to pick multiple orders simultaneously, reducing the total time needed for item picking. Additionally, use standardized and efficient packaging to reduce packing time and costs.

#4 Monitor performance and make improvements

Once changes are implemented in your warehouse, it’s important to constantly monitor performance and make further improvements if necessary. Use key metrics such as order processing time, shipping accuracy, and operating costs to evaluate the effectiveness of your warehouse operations.

Gather feedback from employees and customers to identify any issues or areas that require further improvements. Continue to seek ways to further optimize processes and reduce costs to keep your e-commerce warehouse highly efficient.

Conclusions