By 2029, the total revenue from e-commerce is forecast at more than 1.8 trillion dollars. With rising consumer expectations and growing demand for fast delivery, warehousing is a critical function for all businesses in the US.
Tight warehouse space pushing even the smallest brands to professionalize their warehousing operations. And for larger corporations, being better and faster than the next option is always a priority.
With same-day or next-day delivery becoming the norm, the pressure on small businesses to meet these demands has never been higher.
Why does warehousing matter for small businesses?
No longer just a ‘back room’ operation, warehousing now play a strategic role in growth. Here are the key pillars behind this crucial part of operations:
- E-commerce growth: Consumers expect faster, personalized delivery and more flexible return options.
- Space constraints: Low vacancy rates for smaller warehouses make it harder for small businesses to find cost-effective space.
- Returns handling: Efficient management and processing of returns is crucial for maintaining customer satisfaction.
As customer expectations rise, small businesses must adapt by investing in warehouse operations that support accuracy and flexibility.
Core building blocks of a well-organized warehouse
To build a well-run warehouse, small businesses should focus on a few fundamental elements:
- Safety: Prioritize warehouse safety to protect workers and inventory, reducing the risk of accidents and damage.
- Layout and flow: Warehouse layout must allow for efficient movement of goods and people. Streamlined processes help your team cut down on time spent on manual tasks.
- Inventory: Standardized processing is essential for meeting customer demands and minimizing errors. Barcode systems or warehouse management software (WMS) help with organization.
- Technology: Simple technologies like scanners and IoT sensors can improve efficiency. For example, vibration sensors can help monitor conditions and reduce downtime on critical equipment.
With these core building blocks, small businesses can improve the efficiency of their warehouse operations and set strong foundations for growth.
Using automation on a small sale
Large warehouses have more capital to embrace full-scale automation, but small businesses can tap into the latest trends in tech without going totally robotic. Here’s how:
- Warehouse management systems: A WMS can help small businesses track inventory and manage shipments more effectively.
- Picking tools: These simple devices guide warehouse staff to the right product location, reducing picking errors and speeding up order fulfilment.
- Cobots and AMRs: Collaborative robots (cobots) and autonomous mobile robots (AMRs) assist with picking and moving goods as volume increases. They improve efficiency without replacing human workers.
Technology and automation help small businesses stay fast and competitive in a tight labor market.
Building a resilient supply hub
A well-run warehouse can be critical to the longevity of your supply chain. Small businesses can strengthen their supply chains by:
- Improving visibility: Technology like WMS allows for real-time tracking, so businesses can monitor shipments and stay ahead of customer needs.
- Faster rerouting: With the right systems in place, businesses can quickly reroute orders or shipments. This is vital in the case of supply chain disruptions.
By building flexibility into their warehouse operations, small businesses can get a better handle on demand spikes. It’s an easy way to mitigate supply chain disruptions on a budget.
A well-run warehouse can be a game changer for small businesses. With a focus on scalable technology and building a resilient supply chain, these companies can not only meet expectations but set the stage for long-term success.