{"id":10857,"date":"2024-01-08T20:00:13","date_gmt":"2024-01-08T20:00:13","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/lean-warehousing\/"},"modified":"2025-07-27T17:38:22","modified_gmt":"2025-07-27T17:38:22","slug":"lean-warehousing","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/lean-warehousing\/","title":{"rendered":"Lean Warehousing: The Path to Ecommerce Efficiency and Cost Reduction\u00a0"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is lean warehousing? <\/a><\/p>\n\n\n\n

The five pillars of lean warehousing <\/a><\/p>\n\n\n\n

How to measure efficiency in warehouse operations <\/a><\/p>\n\n\n\n

3 lean warehousing strategies <\/a><\/p>\n\n\n\n

The future of lean warehousing <\/a><\/p>\n\n\n\n

ShipBob\u2019s plan for lean warehousing and agile fulfilment <\/a><\/p>\n\n\n\n

Lean warehousing FAQs <\/a><\/p>\n<\/div>\n\n\n\n

Inefficiencies, bottlenecks<\/a>, and unnecessary waste are detrimental to ecommerce warehouses. As a result, it\u2019s important to implement lean warehousing practices to address these issues. Otherwise, your business may end up with high overhead costs that chip away at your bottom line. In other words, having a lean warehouse isn\u2019t just optional \u2013 it\u2019s an essential lever for maximising profits and boosting efficiency. <\/p>\n\n\n\n

In this article, we\u2019ll dive deep into what lean warehousing involves, some lean warehousing strategies, and how partners like ShipBob can help you add value to your brand while optimising your operations.  <\/p>\n\n\n\n

What is lean warehousing? <\/h2>\n\n\n\n

Lean warehousing is an approach to warehouse management<\/a> where a business optimises its warehouse to eliminate unnecessary or inefficient processes, costs, or time consumption. The overall goal is to do more with less, and maximise productivity and profitability while minimising waste.  <\/p>\n\n\n\n

Lean warehousing doesn\u2019t just happen on its own; rather, it requires implementing a set of intentional practices that\u00a0streamline your warehousing operations. This may include the use of technology, such as warehouse management systems (WMS), warehouse control systems<\/a> (WCS), and automated storage and retrieval systems (AS\/RS).\u00a0<\/p>\n\n\n\n

Lean warehousing in action <\/h3>\n\n\n\n

It can be hard to understand what lean warehousing looks like until you see it.  <\/p>\n\n\n\n

Toyota\u2019s production control system<\/a> is a great example of lean warehousing in action. The system incorporates two concepts: jidoka<\/em> (loosely translated as \u201cautomation with a human touch\u201d) to prevent the product defects, and a \u201cJust-in-Time<\/a>” philosophy to ensure that every process produces only what\u2019s necessary for the very next task. <\/p>\n\n\n\n

Jidoka <\/em>ensures that a piece of machinery automatically stops whenever a problem occurs, which keeps the company from manufacturing defective products and creating waste.  <\/p>\n\n\n\n

The \u201cJust-in-Time” principle is best represented on the assembly lines at Toyota production centres. Each station on the line is stocked with the required number of parts, allowing workers to assemble any kind of ordered vehicle as soon as production instructions come in. These assembly lines are then restocked with the same number of parts used, so the process can continue as soon as the next order comes in. <\/p>\n\n\n\n

But lean warehousing isn\u2019t only for giant corporations. Smaller ecommerce businesses like Spikeball<\/a> have successfully implemented lean warehousing practices, and achieved massive cost-savings as a result.  <\/p>\n\n\n\n

Previously, Spikeball\u00a0relied heavily on manual processes and implicit knowledge in their fulfilment process. Their manager had to use guesswork when it came to what type of box an order would need and how much it would weigh. Shipping couriers<\/a> were also selected based on what was assumed to be the cheapest option. Any inaccuracies in these calculations resulted in a\u00a0 bill from the courier. \u00a0<\/p>\n\n\n\n

But then, Spikeball partnered with ShipBob, and implemented ShipBob\u2019s proprietary warehouse management system. This system automated these calculations, which significantly improved warehouse efficiency<\/a> while saving time and labour costs for their team. <\/p>\n\n\n\n

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\u201cWe went from 3-4 people spending all day packing orders, and now we have our manager doing everything herself. She picks and packs orders from 7:00 am to noon, and then she\u2019s done with DTC orders for the day. And now our team doesn\u2019t have to rely on tribal knowledge for anything!\u201d <\/em> <\/p>\n\n\n\n

Adam LaGesse, Global Warehousing Director at Spikeball<\/a> <\/p>\n<\/blockquote>\n\n\n\n

ShipBob\u2019s team was also able to optimise inventory storage<\/a> and picking paths within Spikeball\u2019s warehouse, making picking quicker, easier, and even more accurate. \u00a0<\/p>\n\n\n\n

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\u201cThrough the implementation process we learned that if you\u2019re commonly picking certain items, they should be stored in the back so you aren\u2019t carrying them around while you\u2019re picking other items. Our best sellers are at the end of the pick path now, so once we\u2019ve picked those, we\u2019re already back at the pack stations. <\/em><\/p>\n\n\n\n

We even changed the way we stowed products. For example, we would have similar items in the same area \u2014 take shirts, for instance. Because they were so close together, there was a high likelihood that we picked the wrong size or the wrong colour because all of our shirts looked similar and were physically right beside each other. <\/em><\/p>\n\n\n\n

Once we set up ShipBob\u2019s system, we were putting those similar items (that weren\u2019t ordered together) in all different places in the warehouse. After that, our pick accuracy went way up. Getting out of our own way of thinking was eye-opening.\u201d <\/em><\/p>\n\n\n\n

Adam LaGesse, Global Warehousing Director at Spikeball<\/a> <\/p>\n<\/blockquote>\n\n\n\n

The five pillars of lean warehousing <\/h2>\n\n\n\n

A lot goes into lean management for warehouses. That said, successful lean methodology is usually built on the same five pillars:  <\/p>\n\n\n\n

1. Sort <\/h3>\n\n\n\n

To eliminate waste, you first need to know what\u2019s waste and what\u2019s not. Sorting warehousing tasks, operations, equipment, and more into one of two categories \u2013 \u201cnecessary\u201d and \u201cunnecessary\u201d \u2013 can help you identify what assets your warehouse can\u2019t function without, and which you can afford to automate or remove altogether.  <\/p>\n\n\n\n

At ShipBob, for example, we leverage proprietary technology to automate certain tasks, so our fulfilment team only takes on the most essential steps of receiving, putaway<\/a>, picking, and packing. Cross-docking<\/a> is also implemented on request at select distribution centres to eliminate the putaway and storage processes.\u00a0<\/p>\n\n\n\n

2. Set in order <\/h3>\n\n\n\n

An organised warehouse<\/a> is an efficient warehouse. It\u2019s important to physically arrange your warehouse layout to optimise inventory flow and increase efficiency.  <\/p>\n\n\n\n

For example, you should adjust your warehouse setup<\/a> so that inventory and equipment are easily accessible. That way, everything can be accessed in the shortest amount of time possible and with the least amount of movement. Store popular items on lower shelves to make picking easier, and keep aisles wide enough to easily maneuver. <\/p>\n\n\n\n

In ShipBob fulfilment centres, each SKU<\/a> receives its own dedicated storage bin, shelf, or pallet, and pickers\u00a0can easily navigate the warehouse space and aisles to ensure that the fulfilment process flows seamlessly.\u00a0<\/p>\n\n\n\n

3. Shine <\/h3>\n\n\n\n

A clean and clutter-free warehouse enables workers to do their jobs with minimal distractions or obstructions. It\u2019s therefore essential to keep workspaces, tables, and floor spaces free of dust, spills, and clutter.  <\/p>\n\n\n\n

You should also schedule regular maintenance and repair of tools and equipment. This helps prevent malfunctions and accidents, which keeps your staff safe and your productivity timetable on track.  <\/p>\n\n\n\n

4. Standardize <\/h3>\n\n\n\n

Developing uniform systems, labelling conventions, and processes across your warehouse drives efficiency. This requires regular and comprehensive training so that every member of your staff has up-to-date knowledge and skills on what needs to be done.  <\/p>\n\n\n\n

ShipBob, for example, maintains standard work processes to ensure consistency and reliability while also providing ongoing training to every staff member. <\/p>\n\n\n\n

5. Sustain <\/h3>\n\n\n\n

As your business grows, you\u2019ll have to proactively work to keep your warehousing operations lean. This requires continually assessing each of these pillars and making necessary improvements to your existing strategies. At ShipBob, we maintain a culture that reinforces these lean warehousing practices while making regular optimizations to sustain them. <\/p>\n\n\n\n

How to measure efficiency in warehouse operations <\/h2>\n\n\n\n

While you might feel your efforts are working, you\u2019ll need hard data to determine if your warehouse is actually becoming more efficient. Constantly monitoring<\/a> performance metrics related to your warehouse productivity<\/a> and efficiency will help you identify areas of improvement and make constant optimizations for a lean warehouse.  <\/p>\n\n\n\n

Some of the essential warehouse KPIs<\/a> you should monitor are: <\/p>\n\n\n\n