Checklist for warehouse optimization

Warehouse automation is trendy, but the reality is that only 5% of warehousing tasks can be fully automated. The remaining 95% still require skilled human intervention. The key challenge lies in identifying which manual processes can and should be optimized to enhance productivity, improve quality and support employee well-being.

Ensuring productive and error-free warehouse operations is becoming increasingly critical due to the significant and ongoing labour shortage. This issue was underscored in a study published in January 2024 by Sapio Research, which surveyed 1,000 supply chain and logistics leaders from Europe and North America.

The study aimed to gain insights into the current challenges and future strategies related to workforce management and operational efficiency. Notably, 68% of respondents reported that hiring warehouse employees is currently challenging.

Logistics expenses

This labour shortage presents a substantial threat to warehouse efficiency and accuracy, with the potential to disrupt supply chains and escalate operational costs. According to McKinsey, logistics expenses account for 12-20% of a company’s revenue, highlighting the critical need for operational efficiency to maintain profitability in today’s competitive market.

In response, warehouses are increasingly turning to process optimization strategies. By implementing the right solutions, companies can significantly enhance productivity and quality, ensuring more reliable and efficient operations. Even with workforce constraints. Moreover, these improvements are often achievable without substantial upfront investments, making them accessible and practical for companies of all sizes.

Download the ‘Checklist for warehouse optimization’

Digilo, vendor of warehouse optimization solutions, and Supply Chain Movement have created a practical checklist to assess warehouse processes. By answering these 10 questions, you can find your improvement potential.

Find more checklists of Supply Chain Movement here >>