In the dynamic landscape of modern supply chains, one of the key challenges is the efficient management of resources to eliminate waste and enhance overall productivity. In this article, we will delve into strategic ways for warehouse managers to eliminate waste, with a focus on not only optimizing the use of cartons and packing, but labor resources and warehouse space as well.

Carton and Packing Optimization

Carton optimization is a critical aspect of warehouse management, as it directly impacts shipping costs, storage space, and overall efficiency. Packing efficiently is essential for maximizing storage capacity and minimizing waste in the warehouse. One effective method to optimize packing is the standardization of carton sizes. By collaborating closely with suppliers and carriers, managers can establish uniform carton dimensions that minimize the need for excessive packaging materials. Standardized carton sizes also facilitate more efficient stacking and storage within the warehouse, reducing space utilization and improving overall operational flow. Keep in mind though, that standardizing cartons is a good point for efficiency of stacking and packing, but it can be counter to being efficient on carton space. You may be giving up some carton space efficiency for the benefits of stacking, storing, and shipping efficiencies.

Another key strategy is right-sizing cartons to match the specific dimensions of the products being shipped. Tailoring carton sizes in this way eliminates unnecessary void space within packages, which not only optimizes space but also minimizes the risk of product damage during transit. This attention to detail in packaging design ensures that products are securely packed, leading to safer deliveries and reducing potential costs associated with damaged goods. Solutions to these types of problems are incredibly complex and must lean on a variety of modern technologies and know-how for help. Lucas Systems has partnered with Carnegie Mellon University on research focused on developing new and innovative ways to reduce distribution center and transportation waste by optimizing the way packing and packaging of multiple items in a single order is executed.

Always looking to innovate, Amazon has created a durable, weather-resistant paper that molds to the shape of a package, aiming to reduce waste. A sensor identifies items, many of which were traditionally shipped in boxes and redirects them to the new packaging system. The machine then trims a paper bag to match the exact dimensions of the item, minimizing the empty space around it.

This focus on packaging material efficiency is crucial for both environmental and economic sustainability. With 90% of items shipped in the U.S. being packaged in cardboard, adopting eco-friendly and cost-effective materials, such as recycled cardboard or reusable packaging, warehouses can significantly reduce waste. These materials not only contribute to a greener supply chain but also offer long-term cost savings, making the entire packing process more efficient and sustainable.

Warehouse Space Optimization

Real-time monitoring and analytics play a critical role in maintaining warehouse efficiency. By leveraging advanced technologies, warehouse managers can gain insights into space utilization and identify potential bottlenecks before they become problematic. This proactive approach allows for timely adjustments, ensuring that space is optimized, and operations run smoothly. The ability to make data-driven decisions in real-time is invaluable for maintaining a high level of operational efficiency.

This leads us to the idea of Dynamic Slotting, an essential strategy for space optimization. Product slotting is a complex problem. It involves many input factors and many goals (which are sometimes at odds with each other). Traditional slotting solutions require customized models, extensive engineering, measurement, and data collection. Dynamic Slotting involves the use of software and algorithms to perform velocity and affinity analysis, in a real-time, ever adapting fashion, through the use of artificial intelligence and machine learning. By conducting a velocity analysis, the software can categorize products based on their demand and importance. This review can also include affinity analysis, or the odds of items being picked together, parallel to velocity analysis. High-demand items, or “fast movers,” or even frequent partners, can be strategically placed in easily accessible locations within the warehouse. In parallel to the high velocity items, items with higher affinity can be placed near those to minimize travel when they are associated.

These placements not only reduce the time spent searching for these items but also minimizes congestion in high-traffic areas, leading to smoother and quicker order fulfillment processes. By organizing products based on their popularity or seasonality, warehouse managers can ensure that frequently picked items are placed in the most accessible locations. This reduces the time and effort required for order fulfillment, as workers spend less time traveling through the warehouse to pick items. Dynamic Slotting also empowers flexibility and adaptability, allowing for more real-time moves and enabling the warehouse layout to adjust to changes throughout the year.

Another key strategy is the implementation of cross-docking. Cross-docking streamlines the flow of goods by transferring them directly from the receiving dock to outbound shipping, effectively bypassing the need for storage. This approach reduces the need for extensive storage space and shortens the order fulfillment cycle, ensuring that products move swiftly through the supply chain. As a result, inventory is kept lean, and warehouse space is utilized more efficiently.

Finally, the efficient use of vertical space is often an underutilized opportunity in warehouse management. Investing in adjustable shelving and racks can maximize the use of available vertical space, allowing warehouses to store more inventory without expanding their footprint.

Labor Optimization

Analyzing order picking patterns and creating optimized pick paths can significantly reduce the travel time for warehouse staff. This not only enhances efficiency but also minimizes the wear and tear on equipment.

For example, using software, after batches are created, multiple algorithms can be applied to determine an optimized path for the user to take through the warehouse to complete their work. The algorithms consider aisle directions (one-way aisles, for example), base item designations, and other factors to determine the most efficient pick path.

Also, instead of having workers pick one order at a time, multi-stage picking can deliver labor and process optimization benefits. Instead of a single picker handling an entire order from start to finish, different stages are handled by specialized teams or automated systems. This method enhances efficiency by allowing simultaneous processing of multiple orders, reduces travel time within the warehouse, and optimizes labor by assigning tasks based on skill levels or equipment capabilities. The result is faster order fulfillment, reduced errors, and improved scalability in high-volume operations.

Task interleaving in a warehouse also optimizes labor resources by integrating multiple types of tasks into a worker’s daily routine, rather than having them focus on a single task at a time. For instance, instead of assigning a worker solely to picking orders or restocking shelves, task interleaving allows them to perform these tasks interchangeably based on real-time demand and proximity. This dynamic allocation of tasks minimizes idle time and maximizes productivity by ensuring that workers are always engaged in meaningful work.

By interleaving tasks, such as combining order picking with replenishment, workers can handle multiple tasks on a single trip through the warehouse. This reduces unnecessary travel, one of the most significant sources of waste in warehouse operations, and ensures that workers are consistently productive, even during slower periods. Task interleaving also helps balance workloads across the workforce, preventing bottlenecks in one area while workers in another area remain underutilized.

Effectively implementing task interleaving generally necessitates the use of specialized software or a Warehouse Management System (WMS), because of their capability to dynamically assign and prioritize tasks using real-time data, ensuring that the most efficient paths and sequences are followed throughout the warehouse.

In closing, by focusing on carton optimization, packing efficiently, and maximizing warehouse space, and labor resources, managers can significantly reduce costs, enhance sustainability, and ensure a seamless flow of goods through the warehouse. Embracing technology, collaborating with suppliers, and implementing dynamic strategies are key steps toward achieving waste elimination and creating a lean, agile, and efficient warehouse ecosystem.

Ben Smeland is a Senior Software Developer with Lucas Systems, leveraging over 19 years of software development experience to challenge and innovate against software architectures to promote clarity, performance, and sustainability.

With experience as a full-stack developer, software architect, and project manager, Ben has served in almost every capacity in the software industry, engaging with internal teams and customers to bring inventive, sustainable solutions to complicated business problems.

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