5 Best Practices for Distribution Businesses to Maximize Efficiency and Reduce Risk

5 Best Practices for Distribution Businesses to Maximize Efficiency and Reduce Risk

Distributions centers rely on effective best practices in order to keep the supply chain and logistics running smoothly. Without a well-planned and thought-out systems, these centers would fall apart in a matter of days. And with the recent interruption due to Hurricane Dorian, there’s no telling the long-term effects that a disrupted warehouse would have on the complete business.

Every warehouse and distribution center should have a program in place that enables them to reduce errors, labor, and cycle time while boosting accuracy and service. Since what’s right for one company may not work for another, it’s important to look at a number of different practices that can help.

1. Setting Up a Vendor Compliance Program

Having a vendor compliance program is an effective way to enhance the strategic relationship between 3PL warehouse and distribution providers, a business, and its vendors. Having well-planned compliance programs can help with streamlining warehouse operations, reducing the handling of products, and increased customer satisfaction. Proper visibility will be ensured as well as the seamless movement of products throughout the entire supply chain.

2. Advanced Shipping Notification

Putting reliance on a shipping and receiving schedule that’s typical can result in unwanted inefficiencies throughout the entire distribution center. Delays and disruption can slip through, causing a deviation from the regular schedule. By leveraging electronic advanced shipping notifications, labor can be planned out more thoroughly and with more certainty. The order fulfillment and inventory management functions can be adjusted to ensure better service time requirements are met and that costs can be kept down.

3. Hands-Free Order Selection

Handheld scanners can help move things along quickly, but newer technologies like wrist-mounted RF units or voice picking can help the overall picking process, cutting time down. Future tech is being developed with wearable devices that can make the tracking portion of an operation more and more intuitive to the picking and order selection parts of a distribution center.

4. Recording All Movements

Any movement in the supply chain process that can’t be tracked or documented as a transaction either is an unnecessary step that can and should be cut out. When issues come up that are not part of the regular process, this is referred to as a turnback and should be reported in order to be dealt with quickly in order to reduce loss.

5. Setting Up Insurance

Limiting risk or cutting out time wasted may be easier for one distribution center compared to others. And while unique variables play a role in the efficiency of these tips, having a well-rounded approach to covering risks is universal. This can be pursued through insurance for wholesale distribution centers.

This kind of coverage provides product liability coverage and protection against certain risks that can bring a distribution center to a halt. From storms, such as those included in Hurricane Dorian, to employee theft and disruptions in procedure that lead to loss of any kind, this kind of insurance is a wide-ranging approach to keeping a company’s head above water.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.