{"id":8836,"date":"2021-11-23T09:03:50","date_gmt":"2021-11-23T09:03:50","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=8836"},"modified":"2024-06-17T11:21:21","modified_gmt":"2024-06-17T11:21:21","slug":"lean-warehouse-management","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/","title":{"rendered":"Lean Warehouse Management Guide for SMEs"},"content":{"rendered":"\n<p>Lean warehouse management is a\nmethodology that takes the lean principles widely used in manufacturing\nenvironments and applies them to warehousing. Putting an emphasis on removing\nwaste, lean warehouse management helps companies optimize and continuously\nimprove their inventory processes.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"617\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/11\/lean-warehouse-management-e1637657166615.jpg\" alt=\"lean-warehouse-management\" class=\"wp-image-8838\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/11\/lean-warehouse-management-e1637657166615.jpg 1000w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/11\/lean-warehouse-management-e1637657166615-300x185.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/11\/lean-warehouse-management-e1637657166615-768x474.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<!--more-->\n\n\n\n<p><em>You can also listen to this article: <\/em><\/p>\n\n\n\n<figure><iframe loading=\"lazy\" height=\"150\" width=\"100%\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=vwk22-1178dbb-pb&amp;from=pb6admin&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Arial&amp;skin=1&amp;font-color=&amp;btn-skin=3\"><\/iframe><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Intro\" >Intro<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#What_is_Lean_Warehouse_Management\" >What is Lean Warehouse Management?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Applying_Lean_Tools_to_Warehouse_Management\" >Applying Lean Tools to Warehouse Management<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Sort\" >Sort<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Set_in_Order\" >Set in Order<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Shine\" >Shine<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Standardize\" >Standardize<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Sustain\" >Sustain<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Specific_Benefits_of_Lean_Warehouse_Management\" >Specific Benefits of Lean Warehouse Management<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Data\" >Data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Storage_Management\" >Storage Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Vendor_Management\" >Vendor Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Order_Management\" >Order Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Improved_Visibility\" >Improved Visibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Holding_Costs\" >Holding Costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#How_Lean_Warehouse_Management_Helps_SMEs\" >How Lean Warehouse Management Helps SMEs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.mrpeasy.com\/blog\/lean-warehouse-management\/#Key_takeaways\" >Key takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Intro\"><\/span>Intro<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With tremendous disruptions in\nmanufacturing over the last few years, small and medium-sized enterprises (SME)\nfeel pressure to manage their operations tightly. By controlling costs and\noptimizing processes, SMEs can better manage the effects of tariffs, trade\nwars, pandemics, and other events.<\/p>\n\n\n\n<p>But what about warehouse\nmanagement? While optimized manufacturing operations are great to have, the\nsame practices that drive efficiency in production can be applied to warehouse\nmanagement. And one great way to do this is through lean warehouse management.<\/p>\n\n\n<div class=\"banner-v2\">\n    <p class=\"banner-v2__desc\">Achieve a leaner warehouse with MRPeasy<\/p>\n    <a class=\"banner-v2__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_blue\">Try for free<\/a>\n<\/div>\t\t<style>.banner-v2 {\n    float: right;\n    display: flex;\n    flex-direction: column;\n    justify-content: center;\n    align-items: center;\n    padding: 40px 32px;\n    gap: 16px;\n    width: 356px;\n    height: 205px;\n    background: linear-gradient(199.68deg, #6084E5 13.17%, #5FA7DD 82.1%);\n    border-radius: 4px;\n    margin-left: 12px;\n    margin-bottom: 12px;\n    margin-top: 15px;\n}\n\n@media (max-width: 767.98px) {\n    .banner-v2 {\n         width: 100%;\n         height: 173px;\n         margin-bottom: 0;\n         margin-left: 0;\n    }\n}\n\n.single__content p.banner-v2__desc {\n    margin: 0 !important;\n}\n\np.banner-v2__desc {\n    width: 292px;\n    font-style: normal;\n    font-weight: 700;\n    font-size: 22px;\n    line-height: 29px !important;\n    text-align: center;\n    color: #FFFFFF;\n    margin: 0 !important;\n    order: 0 !important;\n}\n\n.single__content a.banner-v2__link {\n    color: #FFFFFF !important;\n}\n\n.single__content a.banner-v2__link:hover {\n    color: #003557 !important;\n}\n\na.banner-v2__link {\n    display: flex;\n    justify-content: center;\n    align-items: center;\n    width: 181px;\n    height: 51px;\n    padding: 18px 0;\n    border-radius: 4px;\n    background: #003557;\n    font-weight: 700;\n    font-size: 16px;\n    color: #FFFFFF !important;\n    text-decoration: none !important;\n    order: 1 !important;\n}\n\n.banner-v2__link:hover {\n    background: white;\n    color: #003557 !important;\n}<\/style>\n\t\t\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Lean_Warehouse_Management\"><\/span>What is Lean Warehouse Management?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Lean warehouse management is the application of the lean principles into warehousing environments. It aims to cut down on waste and improve the efficiency of inventory processes.<\/p>\n\n\n\n<p>The Lean methodology grew out of the <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/en.wikipedia.org\/wiki\/Toyota_Production_System\" target=\"_blank\">Toyota Management System<\/a> envisioned by Kiichiro Toyoda. It consisted of several key components that included identifying value, mapping value streams, creating flow, establishing a \u201cpull\u201d system, and repeating the process to improve continuously.<\/p>\n\n\n\n<p>These process improvements\nfocused on&nbsp;types of waste,\nincluding:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Overproduction<\/li>\n\n\n\n<li>Inventory<\/li>\n\n\n\n<li>Unnecessary Motion<\/li>\n\n\n\n<li>Defects<\/li>\n\n\n\n<li>Over-Processing<\/li>\n\n\n\n<li>Wait Time<\/li>\n\n\n\n<li>Transportation<\/li>\n<\/ul>\n\n\n\n<p>Focusing the closed loop on these\ntypes of waste creates an optimized system, which becomes the driving force for\nimprovement. Lean then becomes part of the company culture and is a way of\nthinking about production.<\/p>\n\n\n\n<p>With the success of Lean\nmethodologies in production, many companies began using the tools and\ntechniques of Lean in other areas to produce the same effect, drive out waste,\nand optimize any area to create more value.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Today, lean thinking is used in&nbsp;many types of businesses&nbsp;outside of\nmanufacturing, including retail management, public utilities and services,\nmunicipal management, and others. And it has also proven itself to be a handy\ntool in warehouse management. By applying the same methodologies to the same\nwaste classes, warehouse management can realize benefits much like their\nproduction counterparts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applying_Lean_Tools_to_Warehouse_Management\"><\/span>Applying Lean Tools to Warehouse Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the most readily recognized tools of Lean is the 5S methodology.&nbsp;<\/p>\n\n\n\n<p><strong>5S refers to:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sort<\/strong><\/li>\n\n\n\n<li><strong>Set in\nOrder<\/strong><\/li>\n\n\n\n<li><strong>Shine<\/strong><\/li>\n\n\n\n<li><strong>Standardize<\/strong><\/li>\n\n\n\n<li><strong>Sustain<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This tool is used in a Lean\nconversion and throughout a Lean lifetime within manufacturing. Let\u2019s look at\nhow the 5S differs from manufacturing but still applies to warehouse\nmanagement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sort\"><\/span>Sort<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In manufacturing, sort means to\nsort pieces, parts, tools, and physical components for doing the job and\nplacing them together. In warehouse management, sort is used to identify the\nnecessary and unnecessary practices and resource use. This process helps team\nmembers identify bottlenecks and eliminate unnecessary processes while\nidentifying those that should remain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Set_in_Order\"><\/span>Set in Order<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This works the same in warehouse\nmanagement as it does in manufacturing. Having sorted processes into place,\nunnecessary ones are discarded while required processes remain. It may be\npossible to improve many of the necessary processes, remove&nbsp;redundant steps, automate steps, or\nchange their task structure to speed them up and improve accuracy. In\nwarehousing, this may include things such as:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Improving accessibility to inventory and resources that are used most often.<\/li>\n\n\n\n<li>Re-imagining warehouse layout to improve transit and <a href=\"https:\/\/www.mrpeasy.com\/blog\/order-picking\/\" target=\"_blank\" rel=\"noreferrer noopener\">order picking<\/a> tasks.<\/li>\n\n\n\n<li>Looking at the workflow in relation to staff proximity to reduce steps for employees.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shine\"><\/span>Shine<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Manufacturing long ago grasped the importance of housekeeping as an indicator of discipline in eliminating waste.\u00a0 Warehouses are no different. Many of these <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/warehouse-organization\/\" target=\"_blank\" rel=\"noreferrer noopener\">warehouse organization<\/a> steps are simple and should be done during the actions of picking. This housekeeping includes removing shrink wrap, taking empty pallets to the staging area, replacing tape and packing supplies when empty, and breaking down and removing cartons. Not only do these things make a warehouse look bad, but each one represents additional steps \u2013 or wasted motion in Lean \u2013 that employees must make to correct them, thus lowering labor efficiency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Standardize\"><\/span>Standardize<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In manufacturing, after sort, set\nin place, and shine comes standardizing. The same applies to warehouse\nmanagement. This harmonizing includes&nbsp;standardized\nlabels, common packing formats, uniform tape lengths for carton\nclosure, adherence to proper transit pathways, whether one-way or two-way. All\nof these can be standardized, and all will reduce wasted effort, time, and\nmaterial.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sustain\"><\/span>Sustain<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Lean in manufacturing sustains\nthe changes and improvements through well-designed standard operating\nprocedures (SOP).&nbsp; The same is true for warehouse management. Warehouses\ncan benefit from well-designed and effective SOPs for putting away stock,\npicking, packing, unloading, and loading trucks, and many more. Like\nmanufacturing, standard work that describes how certain tasks should be\nperformed can be created, and employees are trained to adhere to the best work\npractices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Specific_Benefits_of_Lean_Warehouse_Management\"><\/span>Specific Benefits of Lean Warehouse Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Regardless of the similarities,\nthere are distinctions between warehouse management and production in its\napplication of Lean. Because of this, some considerations are specific or need\nto be customized to apply to Lean warehouse management. The focus is still on\nwaste and process improvement, however.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Data\"><\/span>Data<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Because inventory is extremely transactional, data should be input only once into the system. This is aided by the use of an MRP or ERP system with a strong <a href=\"https:\/\/www.mrpeasy.com\/inventory-management\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">inventory management<\/a> component. Automating inventory data to where it is&nbsp;only handled once&nbsp;means that reconciliation, adjustments, and other maintenance functions are less frequent, giving the system high-quality data that can be accessed by MRP and ERP systems with confidence.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Storage_Management\"><\/span>Storage Management<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another case for automation to include in inventory management is to take advantage of storage management. With data in manufacturing being at or near real-time, inventory needs to keep up with this capability. This means optimized picking strategies suggested by computer insights and real-time inventory to <a href=\"https:\/\/www.mrpeasy.com\/blog\/work-in-process-inventory-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Work-in-Process inventory (WIP)<\/a> availability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Vendor_Management\"><\/span>Vendor Management<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Lean methodology in warehouse management includes standardization.&nbsp; This means that vendors should be tasked with creating standard labels that can be read with barcode readers, scanners, and other automation equipment the facility uses.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Order_Management\"><\/span>Order Management<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Because automation is key to Lean warehouse management, orders for materials, staging, pick requests, etc., will be able to keep pace with the real-time data flow of manufacturing \u201cpull\u201d requests from inventory. Because it is automated, this data is also easily used in a <a href=\"https:\/\/www.mrpeasy.com\/blog\/perpetual-vs-periodic-inventory-system\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">perpetual inventory system<\/a>, so purchasing, logistics, and other supply chain function decisions are made using real-time data and insights.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Improved_Visibility\"><\/span>Improved Visibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many manufacturing companies\noperate with seasonal fluctuations.&nbsp; Lean warehouse management best\npractices can help deal with the highs and lows of seasonality because\nprocesses are standardized. It allows managers and decision-makers to know when\nto add more labor or when to back off because seasonal issues are handled the\nsame across higher and lower demand cycles.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Holding_Costs\"><\/span>Holding Costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unlike manufacturing, warehousing and inventory fluctuate in the need for space. Lean practices enabled by automation can be used to develop optimized picking and <a href=\"https:\/\/www.mrpeasy.com\/blog\/kitting\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">kitting<\/a> strategies. It can also help prevent overstocking and the need to take on expensive additional space.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Lean_Warehouse_Management_Helps_SMEs\"><\/span>How Lean Warehouse Management Helps SMEs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Most SMEs do not have the depth\nof resources of large-scale enterprises and multinational manufacturers. This\nmeans that they must be able to optimize the resources they have at their\ndisposal.&nbsp;<\/p>\n\n\n\n<p>Lean warehouse management in SMEs\ncan provide benefits such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower Cost<\/li>\n\n\n\n<li>Better Labor Utilization<\/li>\n\n\n\n<li>Improved Accuracy<\/li>\n\n\n\n<li>Fewer Administrative Tasks<\/li>\n<\/ul>\n\n\n\n<p>Of course, the key to realizing these benefits is robust <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/enterprise-resource-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\">ERP\/MRP software<\/a> that includes powerful <a href=\"https:\/\/www.mrpeasy.com\/blog\/inventory-optimization\/\">inventory optimization<\/a> capabilities. This allows SMEs to focus on core tasks with fewer resources and less time devoted to warehouse management. It also means less waste in their inventory management across all waste categories \u2013 making Lean warehouse management for SMEs a valuable choice.<\/p>\n\n\n<div class=\"banner-v1\">\n    <div class=\"banner__text\">\n        <div class=\"banner-v1__title\">Easily avoid stockouts and overstocking <\/div>\n        <div class=\"banner-v1__desc\">MRPeasy users report a 54% average improvement in the overall performance of their company.<\/div>\n        <div><a class=\"banner-v1__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_white\">Try for free<\/a><\/div>\n    <\/div>\n    <div class=\"banner__img\">\n        <img decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/themes\/mrpeasy\/assets\/images\/banner.svg\" alt=\"banner\">\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_takeaways\"><\/span>Key takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The lean methodology consists of several key\ncomponents that include identifying value, mapping value streams, creating\nflow, establishing a \u201cpull\u201d system, and repeating the process to improve\ncontinuously.<\/li>\n\n\n\n<li>This closed loop is then focused on eliminating\nwaste such as overproduction, excess inventory, unnecessary motion, defects,\nover-processing, wait time, and transportation.<\/li>\n\n\n\n<li>One of the best toolsets to use for lean warehouse\nmanagement is the 5S: Sort, Set in Order, Shine, Standardize, and Sustain.<\/li>\n\n\n\n<li>Sort is used to identify the necessary and\nunnecessary practices and resource use. This process helps team members\nidentify bottlenecks and eliminate unnecessary processes while determining\nthose that should remain.<\/li>\n\n\n\n<li>Having sorted the processes, Set in Order in\nused to improve many of the necessary processes, remove&nbsp;redundant steps, automate steps, or\nchange their task structure to speed them up and improve accuracy.<\/li>\n\n\n\n<li>Shine is used to keep the facility clean by\nincluding housekeeping steps into the picking process, i.e. having pickers\nremove shrink-wrap, take back empty pellets, discard the cardboard, etc.<\/li>\n\n\n\n<li>Standardizing includes&nbsp;standard labels, common packing formats, uniform\ntape lengths for carton closure, adherence to proper transit pathways, whether\none-way or two-way. All of this will reduce wasted effort, time, and material.<\/li>\n\n\n\n<li>Sustain means adhering to the standard\nprocedures put in place. Warehouses can benefit from well-designed and\neffective SOPs for putting away stock, picking, packing, unloading and loading\ntrucks, etc.<\/li>\n\n\n\n<li>Applied to warehouse management, lean can\nprovide benefits such as lower costs, better labor utilization, improved\naccuracy, and reduction of administrative tasks.<\/li>\n\n\n\n<li>The key to realizing the advantages of lean\nwarehouse management is ERP\/MRP software with great inventory management\ncapabilities.<\/li>\n<\/ul>\n\n\n\n<p><em>You may also like: <a href=\"https:\/\/www.mrpeasy.com\/blog\/dead-stock\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">What Is Dead Stock and How to Avoid It?<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lean warehouse management is a methodology that takes the lean principles widely used in manufacturing environments and applies them to warehousing. Putting an emphasis on removing waste, lean warehouse management helps companies optimize and continuously improve their inventory processes.<\/p>\n","protected":false},"author":4,"featured_media":8838,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[96,94],"tags":[869,50,867,37,868,866,870,872,564,871,489],"class_list":["post-8836","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventory","category-tips","tag-continuous-improvement","tag-inventory-management","tag-lean-inventory-management","tag-lean-manufacturing","tag-lean-methodology","tag-lean-warehouse-management","tag-process-optimization","tag-warehouse-management","tag-warehouse-organization","tag-warehouse-processes","tag-waste-reduction"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lean Warehouse Management Guide for SMEs - 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