Distribution Center Processes and Best Practices

Imagine a distribution center to be your morning coffee grinding and vending machine. You wouldn’t want anything to go wrong with the machine! To keep the machine in its pink of health you definitely would service it and check for its working condition from time to time. A very close analogy is that of your distribution center. You cannot afford to have any hindrance in processes. Just as how you went from boiling a pot of coffee to upgrading to a machine that makes your morning coffee enjoyable, you need to adopt some best practices to ensure smooth and efficient operation of distribution centers.

Optimized  processes help in increased profits, reduced excessive spends, faster delivery, precise coordination and thereby provide a better experience for your customers.

Deploy Route Optimization API

An effective route optimization API, like Nextbillion’s Route optimization API that has comprehensive features including live tracking, is the best option for you to bring a perfect sync into your entire supply chain processes.

Nextbillion’s Route optimization API generates optimal routes to fit your delivery needs, by choosing the closest route. With several deliveries in line and dispatch in different directions, this route optimization API cleverly assigns tasks based on the distance, vehicle, goods and the driver.

Advanced route planning ensures improved efficiency with zone-based allocation, provides support for varied kinds of vehicles, and custom cost depending on the vehicles.

Nextbillion.ai has a host of APIs for all the last-mile delivery requirements:

Route Optimization API: Optimize routes by allocating the best routes to the drivers. This largely cuts the time taken for delivery and most-importantly the fuel cost.

Distance Matrix API: You can get accurate transit ETAs and distances from all origins to destinations without latency and at affordable cost.

Live Tracking API & SDK: You can live-track all your vehicles and receive reliable and accurate activity notifications.

Clustering API: You can group similar data points, plan routes and schedule delivery accordingly.

Isochrone API:  NextBillion.ai’s Isochrone API calculates the regions that can be reached within a stipulated time frame from a given location.

Geofencing API: You can assign fleets and drivers in real time by calculating proximity based on time or distance.

Clearly, automating processes not only reduces delegation time, it also drastically improves overall efficiency. Route optimization is crucial in the last mile delivery 

Optimize Distribution and Delivery

Handling limitless requests for delivery requires you to automate and optimize processes. Nextbillion’s logistics solutions forecast delivery capacity for future time slots by analyzing current usage. Conduct free simulations with diverse capacity and fleet configurations to optimize your planning.

Opting for a Warehouse Management System (WMS) which is the central nervous system for warehouses and distribution centers, is another best practice. With this you can oversee physical inventory, track product expiration and replenishment needs, pinpoint item locations, and offer numerous other functions. It enables real-time inventory updates through barcode scanning during receiving, allowing pickers immediate access to new stock information. You can minimize human error, enhance picking precision, and provide instant visibility across your entire facility, regardless of its size or layout.
Integrating your WMS with a route optimization API makes it easier for you to track goods, from pick up until delivery. Nextbillion’s route optimization API integrates easily with other applications making it a convenient option for many. You can elevate the capabilities of your existing system with our route optimization APIs extended features.

Implement Best Picking Process

Order picking is the crucial initial stage of order fulfillment and involves retrieving specific products from warehouse inventory to fulfill customer orders. Accurate and efficient picking lays the foundation for customer satisfaction, regardless of the method used.

Picking process is unique to each distribution center. There’s no one way of doing it. Each process has its own benefits and you may need to try and assess which one works best for you.

Single Order Picking

In this method, the warehouse staff navigate the facility to collect goods sequentially, and complete one order at a time. It’s an effective approach for smaller warehouses managing straightforward orders with minimal items per transaction.

Batch Picking

This method streamlines retrieval by collecting goods in bulk for multiple orders simultaneously. It reduces travel time and accelerates fulfillment, particularly useful for warehouses handling numerous orders with overlapping items. Staff utilize a unified pick list to gather the goods for several orders in a single sweep through the facility.

Multi-batch Order Picking

This method quickens item collection by processing multiple orders concurrently. Employees use multi-level carts to gather the goods for several orders in one go. This method is particularly effective for orders sourced from diverse warehouse zones. It significantly reduces overall transit time, as workers complete multiple orders in a single pass through the facility.

Cluster Picking

This method allows for concurrent processing of multiple orders. Staffs collect goods listed on several pick lists and sort them directly into separate containers, each corresponding to a specific order. This method eliminates redundant trips to the same location and negates the need for post-picking sorting.

Wave Picking

This method combines elements of batch and zone picking strategies, useful in large warehouses handling numerous high-volume orders regularly. Orders are categorized into groups or waves based on criteria such as customer proximity, order frequency, type, warehouse zones, shipping dates, and other relevant factors. Waves are strategically allocated to pickers and timetables to optimize operational efficiency.

Zone picking

This method is again a good option for large warehouses with multiple storage areas. The warehouse is divided into zones and workers are assigned to each zone. Workers go through the pick list and retrieve goods stored in their zone. Once all the items in that zone are picked, the order is passed to other zones. 

You can choose a process that works for your center – a single mode or even a mix of picking processes.

Optimal Warehouse Design

The layout of your distribution center can make or break your supply chain efficiency. Well-designed facilities ensure a smooth product and personnel flow from receipt to shipment. Like selecting the optimal picking method, perfecting your warehouse layout may require experimentation.

First, place high-turnover items for easy access, and reorganize as needed. Consider seasonal demand fluctuations when placing items, such as prioritizing holiday decorations during peak seasons. Ensure aisles are wide enough to safely accommodate staff, pallets, and equipment. To minimize transport time, locate packing areas close to loading docks. Finally, designate specific staging areas for efficient vehicle loading and unloading. By implementing these strategies, you can create a flexible, efficient warehouse layout that adapts to changing needs and optimizes operations.

Regular Warehouse Audit

Warehouse audits are crucial management tools that allow managers to gauge team performance and pinpoint areas that need improvement. By collecting data during audits, warehouse managers can track key performance metrics over time, such as inventory count accuracy and order fulfillment efficiency.

These assessments serve multiple purposes beyond performance evaluation. They provide opportunities to verify inventory quality, check for expired stock, and ensure adherence to safety protocols. While audits may temporarily slow operations, their long-term benefits in time and cost savings are substantial.

Audits function as a comprehensive safety net for your business. To make this process more effective without disrupting operations, choose to conduct small and manageable sections of audits monthly. This approach allows for continuous improvement and vigilance without the need for large-scale evaluations.

Easy Returns Process

The number of returns are as much or more than new orders. Customers who have had a pleasant return experience are more likely to order more from the same site. Handling returns is a division by itself. Establishing a clear system to handle this entire process evens out a lot of overlapping tasks.

By facilitating hassle-free returns, these operations play a crucial role in enhancing customer satisfaction and fostering brand loyalty. This efficient handling of returns ultimately leads to increased repeat purchase. This also means that a well-managed returns process is not just a cost center, but a powerful driver of long-term revenue growth and customer retention.

Regular Assessments

The dynamic nature of supply chain logistics demands regular evaluation and assessment of warehousing processes. This includes seasonal adjustments, such as reorganizing product placement to accommodate fluctuating demand.

Periodic and ongoing training for staff is crucial for staff to update skills and understand new safety measures. Using Warehouse Management System data is essential for gauging operational efficiency. When you implement these strategies, businesses can drive continuous improvement, boost operational efficiency, and positively impact the bottom line. This approach ensures that warehouse operations remain agile and responsive to changing market dynamics and internal needs.