Warehouse Operations
Running a warehouse has its challenges. Whether juggling “hot shot’ orders from customers that need a product yesterday, stocking incoming shipments, or finding mislabeled freight, there is always something to do. It takes years of experience and hours in the driver seat of a forklift to know all there is to know about the operation, but one can manage to contribute after a short training period. Our warehouse has one manager, three shift supervisors, and twenty-one hourly employees.
As the Warehouse Manager, I have many duties beyond that of a regular employee. A few of my paperwork responsibilities are reconciling invoices, entering weekly payroll, making crew schedules, adhering to the established budget, and developing training materials. I am also tasked with monitoring safety initiatives – a critical piece of the puzzle.
In 2009, I commissioned a new Warehouse Management System from a local vendor to bring our operation into the 21st century. Prior to adopting this system, we used paper invoices and bills of lading. With the new system, our personnel have hand held scanners that they use to receive and load out freight. This allows us to report in real time the whereabouts of any item we have in inventory. The corporate office and our customers have really been impressed with our ability to tell them exactly where a package is in our warehouse. It has also made stocking the racks with incoming shipments less of a guessing game. We have saved the equivalent of 2 full-time employees worth of man hours this past year with these new efficiencies. In this economy, that is certainly nothing to scoff at.
From an operational standpoint, I am responsible for ensuring that the dock equipment gets regular maintenance, ordering replacements if they are no longer functional, and dealing with third party contractors that may come in to service the equipment. Our biggest expenditures this past year were placing two of our six forklifts at a cost of $10,000 each. We also ordered ten new racks at $4,000 each and two new floor scales at $1,000 each. These floor scales were an absolute necessity for the operation. They are pallet-sized and hold up to ten thousand pounds each.
In order to receive freight from an incoming truck or container, we have to verify the weight of the pallet, crate, box, or sack. Without the ability to verify the weight of the shipment, we could overload our racks or our out going trucks. That could lead to an accident, which could cost someone their life. We aren’t willing to risk that.
From an economic perspective, if our customer says they shipped 2 tons of a product worth $3,000 a ton, it matters if we turn over only one ton of product to the next leg of the trip. We might have to eat the $3,000 shortage. For this reason, we verify everything.
The typical shipment starts and ends at the loading dock. This is where the dock personnel unloads a truck and receives the goods. Immediately after taking the item from the truck, it is scanned with our new handheld device and placed on our industrial grade floor scale. We verify the weight and then the dimensions of the container and double check the bill of lading number. We then stock the item based on the map displayed on the handheld. When we get an order for the outgoing item, the process is reversed.
Working in the warehouse allows you to contribute to the success of a company in a hands-on way.