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Maximizing Efficiency and Profitability Through Value-Added Services in Warehousing

Warehousing is a crucial component of the supply chain, providing storage and distribution services for businesses of all sizes. While traditional warehousing services include storage, inventory management, and order fulfillment, value-added services can take your warehousing operations to the next level.

Value-added services in warehousing include things like packaging and assembly, kitting and bundling, labeling and tagging, and even custom fabrication. These services can greatly improve the efficiency and profitability of your warehousing operations by streamlining processes and reducing labor costs.

For example, packaging and assembly services can save time and labor by consolidating products and preparing them for shipment. Kitting and bundling services can increase efficiency by grouping items together for easy distribution.

Labeling and tagging services can improve inventory management and accuracy. And custom fabrication services can provide businesses with a competitive edge by allowing them to offer unique and customized products.

The key to successful value-added services in warehousing is to find the right services that meet the specific needs of your business. By working with Ahlers, we can offer a range of value-added services, and create a customized solution that will help you maximize efficiency and profitability.

In summary, through the implementation of value-added services such as packaging and assembly, kitting and bundling, labeling and tagging, and custom fabrication, warehousing operations can improve efficiency, reduce labor costs and increase profitability. 

Warehouse assembly

Warehouse assembly is the process of collecting a finished product or assembling a “workpiece” from details and components directly in storage space. A transaction can consist of any number of activities, including packing for shipping, picking orders, placing orders with suppliers, and receiving goods by stores.

For instance, storage of snow shovels is not cheap, since the assembled tool takes up a lot of space, often beyond the storage cell, and it is inconvenient for selection when picking orders. At the same time, parts for shovels, such as handles and ladles are more efficiently stored on standard pallets, and the required number of shovels can be gathered in the shortest possible time to ship orders.

Ahlers pays particular attention to the development and implementation of instructions for assembling products in warehouses, creating descriptions of the production of finished goods by assembling components into the off-the-shelf product. This is especially important when working with complex electronic goods which requires highly qualified employees and strict adherence to instructions. For example, assembling a set of a home Wi-Fi router for the Internet. Here, not only a set for the buyer is completed, but also the device firmware is updated according to the manufacturer's technological maps.

Assembly accuracy is important in warehousing value-added services because it ensures that the finished products are properly assembled and meet the desired specifications. Accurate assembly can improve the overall quality and safety of the products, which can lead to increased customer satisfaction and reduced returns.

Additionally, accurate assembly can help to minimize waste and improve efficiency in the warehouse, which can save time and money.

Inaccurate assembly can also lead to increased errors in inventory tracking and order fulfillment, which can cause delays and additional costs. Accurate assembly is also important for compliance with industry regulations and standards. Overall, accurate assembly is essential for maintaining the integrity of the product, customer satisfaction and the warehouse operation.

Ahlers carefully evaluates the assembly accuracy. Work is performed in the picking area - the storage space is reserved for picking stocks and assembling them into sets by the order of the recipient.

 

The advantages of this approach:

  • Cost reduction through a decrease in the storage and inventory need 
  • Flexibility required when changing or using different components, you can assemble distinct products, depending on the orders received, and not store ready-made products in anticipation of possible demand for them. 
  • Fast order shipment, since time is spent only on the assembly of the product.

But one must also be ready to plan for challenges, such as:

  • Planning discrepancies. Deviation from the forecasts used when assigning components for storage. In most cases, customers rely on historical sales data.
  • The need for additional flow control. It is necessary to additionally control the inventory of components, which can lead to a decrease in efficiency. It is important to ensure an uninterrupted supply chain during periods of peak demand.
  • The Build Quality. Warehouse employees involved in the assembly must be adequately trained. 

Marking and Labelling

Marking and labeling of goods in product assembly is also critical during the process of identifying and providing information about the components and finished products in a manufacturing or assembly operation.

We can include labeling the individual parts with identifying information, such as a part number or serial number, and attaching labels or markings to the finished product that provide information such as product name, manufacturer, and instructions for use.

This enables traceability of the finished product, and provides important information to the end user.