{"id":1101,"date":"2019-05-10T16:15:15","date_gmt":"2019-05-10T23:15:15","guid":{"rendered":"https:\/\/www.logiwa.com\/?p=1101"},"modified":"2025-05-02T04:46:25","modified_gmt":"2025-05-02T11:46:25","slug":"eliminate-warehouse-waste","status":"publish","type":"post","link":"https:\/\/www.logiwa.com\/blog\/eliminate-warehouse-waste","title":{"rendered":"Warehouse Wastes"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;section&#8221; _builder_version=&#8221;4.16&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row admin_label=&#8221;row&#8221; _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;auto&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text ul_item_indent=&#8221;30px&#8221; admin_label=&#8221;Text&#8221; _builder_version=&#8221;4.22.2&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h2>The Top 7 Warehouse Wastes and How to Eliminate Them<\/h2>\n<p>In this article, we&#8217;ll explore the concept of warehouse waste, its detrimental impact on operational efficiency and profits, and strategies to mitigate it. Drawing on principles from lean manufacturing and continuous improvement, you&#8217;ll learn how to identify the seven most common types of warehouse waste and the practical steps you can take to eliminate them.<\/p>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>Over-production waste, often caused by a commitment to historical processes and inefficient machinery, can be combated with a data-based approach to inventory management and machinery upgrades.<\/li>\n<li>Over-processing waste is mitigated through the creation of Standard Operating Procedures (SOP) and cost-benefit analyses of current processes.<\/li>\n<li>Transport waste results from poor warehouse layouts and inventory organization, which can be resolved by redesigning the layout and using pallet flow racks.<\/li>\n<li>Motion waste can be reduced by employee input in warehouse organization and 5S training.<\/li>\n<li>Waiting waste can be eliminated by redesigning processes, practicing preventative maintenance, and standardizing training across the team.<\/li>\n<\/ul>\n<p>Analysts expect the <a href=\"https:\/\/www.businesswire.com\/news\/home\/20180705005454\/en\/Global-Warehousing-Storage-Market-2018-2022-Key-Factors\" target=\"_blank\" rel=\"noopener\">global warehouse industry to grow at a compound annual growth rate of nearly 6% <\/a>\u00a0over the next four years. As consumer expectations around fulfillment rise, we will need more and more warehouses to meet them.<\/p>\n<p><!--more--><\/p>\n<p>The warehouses that succeed will steadily grow their business while carefully managing their operating costs to remain profitable. To this end, lean principles and lean manufacturing have become a popular strategy for warehouses who wish to streamline their processes, practice continuous improvement, reduce excessive inventory, and eliminate warehouse waste.<\/p>\n<h2>The Most Common Types of Warehouse Waste<\/h2>\n<h3>What is Lean Manufacturing?<\/h3>\n<p>Before we dive in, let\u2019s talk about lean manufacturing and what exactly it means. A management philosophy based on Toyota\u2019s innovative manufacturing system, the Toyota Production System (TPS), lean manufacturing became popular as companies prioritized \u201cmake to order\u201d versus \u201cmake to stock.\u201d Today, lean manufacturing also focuses on continuous improvement which is about constantly striving for perfection and refusing to accept inefficient or problematic methods.<\/p>\n<p><!-- Table of Contents --><\/p>\n<div class=\"blog-toc\">\n<p>Lean manufacturing identifies 7 types of warehouse waste:<\/p>\n<ol>\n<li><a href=\"#1\" rel=\"noopener\">Over-production<\/a><\/li>\n<ol style=\"list-style-type: upper-roman;\">\n<li><a href=\"#2\" rel=\"noopener\">What Are the Common Causes of Over-Production Waste?<\/a><\/li>\n<ol>\n<li><a href=\"#3\" rel=\"noopener\">A Stubborn Commitment to Historical Processes<\/a><\/li>\n<li><a href=\"#4\" rel=\"noopener\">Inefficient Machinery<\/a><\/li>\n<\/ol>\n<li><a href=\"#5\" rel=\"noopener\">How Can You Combat Over-Production?<\/a><\/li>\n<ol>\n<li><a href=\"#6\" rel=\"noopener\">Adopting a Data-Based Approach to Inventory Management<\/a><\/li>\n<li><a href=\"#7\" rel=\"noopener\">Upgrade Set-Up Capabilities of Machinery<\/a><\/li>\n<\/ol>\n<\/ol>\n<li><a href=\"#8\" rel=\"noopener\">Over-processing<\/a><\/li>\n<ol style=\"list-style-type: upper-roman;\">\n<li><a href=\"#9\" rel=\"noopener\">What Are the Common Causes of Over-Processing Waste?<\/a><\/li>\n<li><a href=\"#10\" rel=\"noopener\">How Can You Combat Over-Processing?<\/a><\/li>\n<\/ol>\n<li><a href=\"#11\" rel=\"noopener\">Transport<\/a><\/li>\n<ol style=\"list-style-type: upper-roman;\">\n<li><a href=\"#12\" rel=\"noopener\">What Are the Common Causes of Transport Waste?<\/a><\/li>\n<li><a href=\"#13\" rel=\"noopener\">How Can Warehouse Owners Combat Transport Waste?<\/a><\/li>\n<\/ol>\n<li><a href=\"#14\" rel=\"noopener\">Motion<\/a><\/li>\n<ol style=\"list-style-type: upper-roman;\">\n<li><a href=\"#15\" rel=\"noopener\">What Are the Common Causes of Motion Waste?<\/a><\/li>\n<li><a href=\"#16\" rel=\"noopener\">How Can You Combat Motion Waste?<\/a><\/li>\n<\/ol>\n<li><a href=\"#17\" rel=\"noopener\">Waiting<\/a><\/li>\n<ol style=\"list-style-type: upper-roman;\">\n<li><a href=\"#18\" rel=\"noopener\">What Are the Common Causes of Waiting Waste?<\/a><\/li>\n<li><a href=\"#19\" rel=\"noopener\">How Can You \u00a0Combat Waiting Waste?<\/a><\/li>\n<\/ol>\n<li><a href=\"#20\" rel=\"noopener\">Inventory<\/a><\/li>\n<ol style=\"list-style-type: upper-roman;\">\n<li><a href=\"#21\" rel=\"noopener\">What Are the Common Causes of Inventory Management Waste?<\/a><\/li>\n<li><a href=\"#22\" rel=\"noopener\">How Can You \u00a0Combat Inventory Management Waste?<\/a><\/li>\n<\/ol>\n<li><a href=\"#23\" rel=\"noopener\">Defects<\/a><\/li>\n<ol>\n<li><a href=\"#24\" rel=\"noopener\">What Are the Common Causes of Defects Waste?<\/a><\/li>\n<li><a href=\"#25\" rel=\"noopener\">How Can You \u00a0Combat Defects?<\/a><\/li>\n<\/ol>\n<\/ol>\n<\/div>\n<h3 id=\"1\">1. Over-Production Waste<\/h3>\n<p>When you produce more products than your customers want or faster than they need them, you get over-production waste. It leads to excess inventory which raises the cost of managing stock.<\/p>\n<p><img decoding=\"async\" style=\"width: 728px;\" src=\"https:\/\/f.hubspotusercontent30.net\/hubfs\/3469233\/Website%20Assets\/Blog\/Stack-of-cardboard-delivery-730x548-tinified.png\" alt=\"Stack-of-cardboard-delivery-730x548-tinified\" width=\"728\" \/><\/p>\n<p>In addition, you may decide to limit production until clearing inventory, leading to reduced employment. While this may sound like a straightforward solution, reducing employee work in the short term can lead to attrition, effectively costing your company more money in recruitment efforts and last-minute hires.<\/p>\n<p><!-- In-Page Optin Box --><\/p>\n<p class=\"in-content-optin\"><strong>Better Warehouse Performance = Higher Profit Margins:<\/strong> Logiwa syncs accurate data across your entire interface so the inventory numbers you see on your dashboard are what your employees see on their devices. <a href=\"\/resources\/whitepapers\/warehouse-management-software-whitepaper\" target=\"_blank\" rel=\"noopener\"> Learn how Logiwa uses real-time data to help you get up to 100% inventory accuracy and 2.5x shipments.<\/a><\/p>\n<h3 id=\"2\">What Are the Common Causes of Over-Production Waste?<\/h3>\n<h3 id=\"3\">A Stubborn Commitment to Historical Processes<\/h3>\n<p>Skeptical managers often continue doing what they\u2019ve always done. If you&#8217;ve \u00a0always ordered a specific amount of product, you may stay the course, even if you wind up with more products than needed.<\/p>\n<h3 id=\"4\">Inefficient Machinery<\/h3>\n<p>Some machines have long set-up times. Rather than addressing the underlying cause \u2014 the need for efficient machines \u2014 choosing \u00a0to maximize production while the machines are running to produce batch orders can cause over-production waste<\/p>\n<h3 id=\"5\">How Can You Combat Over-Production?<\/h3>\n<p>Over-production is one of the most pernicious forms of warehouse waste. It hides the underlying problems in your organization such as poor processes and old machinery, thereby creating operating costs that silently eat away at your bottom line. You can adopt the following strategies to limit over-production.<\/p>\n<h3 id=\"6\">Adopting a Data-Based Approach to Inventory Management<\/h3>\n<p>Many lean manufacturing proponents prefer a pull manufacturing strategy in which products are made based on orders, not forecasts.<\/p>\n<p>Not ready to adopt a full \u201cjust in time\u201d inventory strategy? Consider taking a math-based or data-based approach to your inventory management. Rather than playing it by ear, base your orders on a <a href=\"https:\/\/www.logiwa.com\/blog\/safety-stock\">safety stock formula<\/a> that incorporates your standard deviation in supplier lead time and demand averages. This will limit inventory costs without completely eliminating buffer stock. If you use a <a href=\"\/\" rel=\"noopener\">warehouse management system (WMS)<\/a>, this tool should automatically generate this information.<\/p>\n<h3 id=\"7\">Upgrade Set-Up Capabilities of Machinery<\/h3>\n<p>Instead of batch production, you can evaluate your existing machinery. This might include:<\/p>\n<ol>\n<li><strong>Replacing machinery altogether: <\/strong>You can detail its specifications, such as desired start-up time, and replace or upgrade equipment as needed.<\/li>\n<li><strong>Employing existing equipment more effectively:<\/strong> You can run existing machines more efficiently through upgrades or educating operators.<\/li>\n<li><strong>Increasing the amount of time existing equipment is used:<\/strong> Rather than replacing existing machines, you can limit over-production and allocate money for potential overtime to operate existing machines if demand unexpectedly rises. This may not be a good long-term strategy depending on how often this occurs.<\/li>\n<li><strong>Outsourcing manufacturing needs:<\/strong> Rather than blowing money on carrying costs, you can \u00a0consider outsourcing some of your manufacturing needs when demand fluctuates. This may not be a sustainable long-term strategy considering the urgency with which these orders may be needed.<\/li>\n<\/ol>\n<h3 id=\"8\">2. Over-Processing Waste<\/h3>\n<p>Over-processing is <a href=\"http:\/\/leanmanufacturingtools.org\/121\/waste-of-overprocessing-causes-symptoms-examples-and-solutions\/\" target=\"_blank\" rel=\"noopener\">doing more work than required<\/a>, such as painting a section of a product that the customer will never see. Unlike over-production or inventory waste, over-processing waste is a little harder to assess. It\u2019s sometimes difficult to gauge when a necessary task, such as quality checks, becomes over-processing, such as over-stringent company policies.<\/p>\n<p>Left unchecked, over-processing raises labor costs and leads to unneeded wear and tear to your \u00a0equipment. It also reduces your company\u2019s ability to add value in areas customers actually care about.<\/p>\n<h3 id=\"9\">What Are the Common Causes of Over-Processing Waste?<\/h3>\n<p>Oftentimes, over-processing waste arises from ambiguity. Poorly developed standards, processes, and specifications leave judgement about work and due diligence up to staff. Methods used by employees during different shifts vary, leading to fluctuations in productivity. In addition, poorly developed processes also increases the amount of repeated work.<\/p>\n<h3 id=\"10\">How Can You Combat Over-Processing?<\/h3>\n<p>To start, you can create <a href=\"https:\/\/www.template.net\/editable\/5807\/warehouse-standard-operating-procedure\" target=\"_blank\" rel=\"noopener\">Standard Operating Procedures (SOP)<\/a> that provide clear guidance to employees about your warehouse processes. You can develop your SOP by consulting with relevant stakeholders, such as your employees, understanding the scope of the SOP (multiple processes, multiple machinery, etc.), documenting the procedure, and brainstorming possible issues with the revised procedure before presenting a final version.<\/p>\n<p>Moreover, assess your current processes in terms of cost and compliance. Are you being overly cautious with your existing processes? Is there a cheaper alternative to a currently expensive process? Consider these elements as well while addressing over-processing waste.<\/p>\n<h3 id=\"11\">3. Transport Waste<\/h3>\n<p>When warehouses move products unnecessarily, they contribute to transport waste. Transport waste leads you to rent or purchase unneeded warehouse space and excessive inventory. You may also face increased energy costs and forklift operations, and more.<\/p>\n<p>Considering the many ways transport waste impacts your operating costs, it\u2019s no wonder it\u2019s taken so seriously by lean principles practitioners.<\/p>\n<h3 id=\"12\">What Are the Common Causes of Transport Waste?<\/h3>\n<p>The most common causes of transport waste are:<\/p>\n<ol>\n<li><strong>Poor <\/strong><a href=\"\/blog\/optimize-warehouse-layout\" rel=\" noopener\"><strong>warehouse layout<\/strong><\/a><strong>:<\/strong> Machines used sequentially aren\u2019t placed close to each other, resulting in unnecessarily long trips to and from.<\/li>\n<li><strong>Double handling:<\/strong> If you place new arriving stock in a buffer storage area with pallet racking (one trip) before moving that material to the pick face (a second trip). This results in double handling. Products with high customer demand, and therefore with higher pick face replenishment rates, exacerbate the problem.<\/li>\n<li><strong>Inventory shuffling for accessibility: <\/strong>Workers move inventory around to access other stock due to poorly organized sections.<\/li>\n<li><strong>Large batch sizes: <\/strong>Properly storing a large batch may require multiple trips, which is immensely wasteful if the large batch sizes contribute to other types of warehouse waste such as over-production, inventory, and motion waste.<\/li>\n<li><strong>Multiple storage locations:<\/strong> You store the same products in multiple locations.<\/li>\n<\/ol>\n<h2 id=\"13\">How Can Warehouse Owners Combat Transport Waste?<\/h2>\n<p>There are several ways to address transport waste. For starters, managers should rethink the layout and align it to warehouse processes so that a machine needed for Step 2 is located near the machine for Step 1. In addition, pallet flow racks may be a worthwhile investment.<\/p>\n<p>Pallet flow racks allows more stock to sit in the pick-face, limiting the amount sitting in buffer storage and thereby reducing double handling. Finally, a reorganization of storage can address inventory shuffling and the presence of multiple storage locations.<\/p>\n<p>[\/et_pb_text][et_pb_code _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; width=&#8221;auto&#8221; custom_margin=&#8221;15px|auto|15px|auto|false|false&#8221; custom_css_main_element=&#8221;.hbspt-form .legal-consent-container a {||    color: white !important;||}&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; global_module=&#8221;26788&#8243; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; use_background_color_gradient=&#8221;on&#8221; background_color_gradient_stops=&#8221;#481a96 0%|#200741 100%&#8221; custom_padding=&#8221;15px|35px|15px|35px|true|true&#8221; border_radii=&#8221;on|10px|10px|10px|10px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; header_3_text_color=&#8221;#ffffff&#8221; header_3_font_size=&#8221;30px&#8221; header_3_font_size_tablet=&#8221;30px&#8221; header_3_font_size_phone=&#8221;20px&#8221; header_3_font_size_last_edited=&#8221;on|phone&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 style=\"text-align: center;\">Request a free demo to learn more about Logiwa WMS.<\/h3>\n<p>[\/et_pb_text][et_pb_code _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; text_orientation=&#8221;center&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js.hsforms.net\/forms\/embed\/v2.js\"><\/script><!-- [et_pb_line_break_holder] --><script><!-- [et_pb_line_break_holder] -->  hbspt.forms.create({<!-- [et_pb_line_break_holder] -->    portalId: \"3469233\",<!-- [et_pb_line_break_holder] -->    formId: \"350e3ad2-eb09-46b1-9079-3f728ec2c0ea\",<!-- [et_pb_line_break_holder] -->    region: \"na1\"<!-- [et_pb_line_break_holder] -->  });<!-- [et_pb_line_break_holder] --><\/script>[\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=&#8221;row&#8221; _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;auto&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; locked=&#8221;off&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text ul_item_indent=&#8221;30px&#8221; _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 id=\"14\">4. Motion Waste<\/h3>\n<p>Think of all the people running around to keep a warehouse operational. Undoubtedly, these individuals work incredibly hard, but they often work harder than they need to. When people move more than necessary, this is known as <a href=\"\/blog\/motion-waste\">motion waste<\/a>.<\/p>\n<p>Motion waste is distinct from transport waste. While the former refers to the movement of <i>people, <\/i>the latter deals with the movement of <i>products. <\/i><\/p>\n<h3 id=\"15\">What Are the Common Causes of Motion Waste?<\/h3>\n<p>Ultimately, motion waste comes down to a poor layout, poor organization of products and tools, and limited space. Poor processes and work methods can also be the cause of motion waste if a specific task requires extensive manipulation of a particular tool or product.<\/p>\n<h3 id=\"16\">How Can You Combat Motion Waste?<\/h3>\n<p>Your employees can provide valuable insight into what is and isn\u2019t working, which tasks are needlessly taxing, and which processes are downright ridiculous. They can quickly identify which areas require reorganization and provide guidance on how to organize the warehouse more efficiently.<\/p>\n<p>You can invest time into a 5S training exercise in which workers apply the following steps towards improving processes:<\/p>\n<ol>\n<li>Sort<\/li>\n<li>Set in Order<\/li>\n<li>Shine<\/li>\n<li>Standardize<\/li>\n<li>Sustain<\/li>\n<\/ol>\n<p>You can use the 5S exercise to create an environment built around efficiency and continuous improvement. We found an example exercise you can look at here.<\/p>\n<h3 id=\"17\">5. Waiting Waste<\/h3>\n<p>Time is a precious resource and many warehouses casually waste it. Examples of waiting waste are:<\/p>\n<ul>\n<li>People waiting while a machine processes\/produces a specific product<\/li>\n<li>Products waiting to go through the next step in the assembly line<\/li>\n<li>Products waiting for shipping to a store, back to the customer, etc.<\/li>\n<li>Equipment sitting idly because of bottlenecks<\/li>\n<\/ul>\n<p>All of these examples can impact your ability to utilize people, processes, and technology effectively. Fortunately, experts have investigated the common causes of waiting waste and developed solutions for this problem.<\/p>\n<h3 id=\"18\">What Are the Common Causes of Waiting Waste?<\/h3>\n<p>Waiting waste occurs for a number of reasons such as:<\/p>\n<ul>\n<li>Unscheduled downtime<\/li>\n<li>Poor internal communications<\/li>\n<li>Production bottlenecks<\/li>\n<li>Long set up times<\/li>\n<li>Labor shortages<\/li>\n<li>Poorly developed processes<\/li>\n<li>Unscheduled employee absences<\/li>\n<\/ul>\n<p>A warehouse experiencing waiting waste rarely suffers from all these problems, but they\u2019ll certainly experience a couple. Once they identify the cause, it\u2019s easier to treat and eliminate the problem.<\/p>\n<h3 id=\"19\">How Can You \u00a0Combat Waiting Waste?<\/h3>\n<p>There are several strategies you can employ to eliminate waiting waste. Often, this means redesigning existing warehouse processes and workflows to ensure the continuous movement of product and activity of employees.<\/p>\n<p>Another common cause of \u201cwaiting waste\u201d is machine downtime. You can consider the following solutions to the downtime issue.<\/p>\n<h4>Practice Preventative Maintenance<\/h4>\n<p>Understand the cost and repair time for various equipment. Unbeknownst to you, a critical machine may require a part that is manufactured overseas, delaying a repair by weeks. Preparing for such scenarios is essential.<\/p>\n<p>You can prepare for such scenarios through preventative maintenance. Traditionally, preventative maintenance simply meant routine \u201ccheck ups.\u201d Today, <a href=\"\/blog\/reduce-costs-improve-warehouse-efficiency\" target=\"_blank\" rel=\"noopener\">warehouses employ low-cost <\/a> by analyzing variables such as temperature, vibration, heat, and light.<\/p>\n<h4>Standardize Training Across Your Team<\/h4>\n<p>Operator error is one of the <a href=\"https:\/\/www.fiixsoftware.com\/blog\/5-causes-of-equipment-failure-and-what-you-can-do-to-prevent-it\/\" target=\"_blank\" rel=\"noopener\">most common causes of machine failure<\/a>. Operators often receive extensive training on operating, maintaining, and troubleshooting specialized machinery, but there are times where labor shortages require you to shuffle the team. While the pinch hitter may be technically qualified, they may lack hands-on experience, increasing the likelihood of errors. Managers should consider cross-training employees to ensure they have ample experience operating critical machinery. In this way, almost any employee can replace an absent employee.<\/p>\n<h3 id=\"20\">6. Inventory Waste<\/h3>\n<p>Inventory waste is the unnecessary accumulation of everything from raw materials to work-in-progress (WIP) materials to finished products. Every piece of excessive inventory costs money, and this ties up cash, negatively impacting a warehouse\u2019s cash flow. If your business is already cash poor and using financing options to manage carrying costs, the accompanying interest payments bring further strain. Examples of carrying costs include, but are not limited to:<\/p>\n<ul>\n<li>Rent\/storage costs<\/li>\n<li>Insurance premiums<\/li>\n<li>Spoilage<\/li>\n<li>Interest payments<\/li>\n<\/ul>\n<p>Lean principles promote just in time (JIT) manufacturing, meaning companies limit the amount of time materials spend in production or final products sit on shelves. They produce what\u2019s needed, when it\u2019s needed, and produce minimal to no excessive inventory.<\/p>\n<p><!-- In-Page Optin Box --><\/p>\n<p class=\"in-content-optin\"><strong>BONUS:<\/strong> Before you read further, download our Warehouse Management Software Whitepaper to see <a href=\"\/resources\/whitepapers\/warehouse-management-software-whitepaper\" target=\"_blank\" rel=\"noopener\">how Logiwa uses real-time data to help you get up to 100% inventory accuracy and execute advanced fulfillment strategies like wave planning.<\/a><\/p>\n<h3 id=\"21\">What Are the Common Causes of Inventory Management Waste?<\/h3>\n<p>Over-production often causes inventory waste. When business owners stubbornly stick to gut-based <a href=\"\/blog\/forecasting\">forecasting<\/a> methods, fail to introduce efficiencies to limit bulk production, and lack faith in their suppliers, they create the conditions for over-production which in turn leads to inventory waste as well as motion and transport waste.<\/p>\n<h3 id=\"22\">How Can You Combat Inventory Management Waste?<\/h3>\n<p>Addressing over-production waste effectively reduces inventory waste. This means taking a data-driven approach to inventory management, improving the set-up times of machines or replacing them altogether, and building a stronger relationship with suppliers.<\/p>\n<p>Using a WMS that\u2019s fully integrated with your sales and shipping channels, not to mention your warehouse systems, can help you gather the data you need to get get rid of inventory management waste.<\/p>\n<h3 id=\"23\">7. Defects Waste<\/h3>\n<p>Defects waste occurs when warehouses make mistakes during processing or produce faulty products that need to be re-made or shipped back. In the event of a full recall, your warehouse may be unable to handle the surge of returned inventory. Even if your warehouse can manage it, it\u2019s a strain on your resources.<\/p>\n<p>Simply speaking, any mistakes during warehouse processes can fall into the category of defects waste. Examples of defects waste include:<\/p>\n<ul>\n<li>Incorrect data entry for orders<\/li>\n<li>Incorrect or missing deliveries<\/li>\n<li>Returned inventory without the appropriate paperwork<\/li>\n<\/ul>\n<h3 id=\"24\">What Are the Common Causes of Defects Waste?<\/h3>\n<p>Defects waste is usually caused by poor training, unclear procedures and warehouse processes, operating errors, and bad suppliers.<\/p>\n<h3 id=\"25\">How Can You Combat Defects?<\/h3>\n<p>Warehouses combat defects waste by taking the following steps:<\/p>\n<ul>\n<li>Assessing existing warehouse processes and improving them<\/li>\n<li>Assessing the training\/skills of current employees and re-training where necessary<\/li>\n<li>Evaluating current suppliers to ensure they are meeting agreed-upon service level agreements and ending the relationship with suppliers who fail to do so<\/li>\n<\/ul>\n<p>Reducing your defects waste can also limit other sources of warehouse waste such as excessive inventory.<\/p>\n<h3>Eliminating Warehouse Waste Leads to Efficient and Profitable Companies<\/h3>\n<p>Reducing and eliminating warehouse waste allows you \u00a0to focus on adding value in the right places, prioritize the right activities, and strive to perfect your manufacturing \u00a0processes. Indeed, eliminating one type of warehouse waste, such as over-production waste, often contributes to the reduction of others like waiting and inventory waste.<\/p>\n<p>The warehouse industry is booming. By using lean principles and continuous improvement strategies, you can build and grow an efficient and profitable company.<\/p>\n<p>Interested in learning about more <a href=\"https:\/\/www.logiwa.com\/industries\/ecommerce-inventory-management-software\" rel=\" noopener\">inventory management<\/a> best practices? Read our annual guide by clicking here.<\/p>\n<h2>FAQs: Warehouse Waste Management<\/h2>\n<p><strong>Q: What is warehouse waste management?<\/strong><\/p>\n<p>A: Warehouse waste management refers to the practice of minimizing waste and maximizing efficiency in the warehouse by focusing on key areas such as over-production, over-processing, transport, motion, and waiting times.<\/p>\n<p><strong>Q: Why is warehouse waste management important for business operations?<\/strong><\/p>\n<p>A: Efficient warehouse waste management is essential for businesses as it helps to reduce costs, improve efficiency, increase profitability, and decrease the environmental impact of operations.<\/p>\n<p><strong>Q: How does over-production contribute to warehouse waste?<\/strong><\/p>\n<p>A: Over-production in warehouse management means producing more goods than needed, leading to excess inventory. This results in capital tied up in unused stock, takes up valuable warehouse space, and may lead to waste due to products becoming obsolete or expired.<\/p>\n<p><strong>Q: What are some strategies for reducing over-processing waste in warehouse management?<\/strong><\/p>\n<p>A: Over-processing waste can be reduced by implementing Standard Operating Procedures (SOP) and conducting cost-benefit analyses of current processes. Streamlining operations and only processing what&#8217;s necessary for order fulfillment can help minimize this type of waste.<\/p>\n<p><strong>Q: How can transport waste be reduced in warehouse waste management?<\/strong><\/p>\n<p>A: Transport waste, resulting from inefficient warehouse layout and poor inventory organization, can be minimized by redesigning the layout for smoother flow of goods, utilizing pallet flow racks, and optimizing the picking process to reduce unnecessary movements.<\/p>\n<p><strong>Q: What steps can be taken to minimize motion waste in warehouse management?<\/strong><\/p>\n<p>A: To reduce motion waste, involve employees in deciding on warehouse organization and offer 5S training (Sort, Set in order, Shine, Standardize, Sustain). Making tools and goods easily accessible reduces unnecessary movement, boosting productivity.<\/p>\n<p><strong>Q: How can waiting waste be tackled in warehouse waste management?<\/strong><\/p>\n<p>A: Waiting waste occurs when staff or machinery are idly waiting due to inefficient processes or equipment failures. This can be minimized by redesigning processes for better flow, practicing preventative maintenance to reduce downtime, and standardizing training to ensure all team members can perform tasks efficiently.<\/p>\n<p><strong>Q: What is the environmental impact of effective warehouse waste management?<\/strong><\/p>\n<p>A: Effective warehouse waste management not only improves operational efficiency and profitability but also significantly reduces the environmental impact by minimizing waste production, lowering energy consumption, and decreasing the carbon footprint associated with warehouse operations.<\/p>\n<p><strong>Related Terms<\/strong><\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/effective-warehouse-reporting-the-key-to-competitive-warehousing\"><strong>Effective Warehouse Reporting<\/strong><\/a><\/p>\n<p>With the right reporting technology, you can have both the real-time data you need to optimize day-to-day warehouse operations and the intelligence you need for longer term decision making.<\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/peak-season-pitfalls-8-mistakes-brands-should-avoid\"><strong>Peak Season Pitfalls<\/strong><\/a><\/p>\n<p>Are you ready for peak season? We highlight eight common pitfalls ecommerce brands and 3PL providers face when preparing for the busiest time of year.<\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/best-practices-in-wms-software-implementation\"><strong>WMS Software Implementation<\/strong><\/a><\/p>\n<p>Proper planning, effective onboarding, and continuous improvement are the three keys to effective software implementation.<\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/b2b-commerce\"><strong>Ecommerce Partnerships: B2B Commerce<\/strong><\/a><\/p>\n<p>Business-to-business (B2B) commerce models allow businesses to sell products or services to other businesses using B2B ecommerce websites and B2B solutions.<\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/the-future-of-ecommerce-and-the-state-of-dtc-fulfillment\"><strong>The Future of Ecommerce and the State of DTC Fulfillment<\/strong><\/a><\/p>\n<p>What is the state of DTC fulfillment for 2023? We explore some of the biggest challenges and how to rise to the occasion.[\/et_pb_text][et_pb_code _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_code disabled_on=&#8221;on|on|on&#8221; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; disabled=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<script type=\"application\/ld+json\">{<!-- [et_pb_line_break_holder] -->  \"@context\": \"https:\/\/schema.org\/\",<!-- [et_pb_line_break_holder] -->  \"@type\": \"ItemList\",<!-- [et_pb_line_break_holder] -->  \"name\": \"The 7 Most Common Types of Warehouse Waste\",<!-- [et_pb_line_break_holder] -->  \"description\": \"This list identifies the seven most common types of waste found in warehouse operations.\",<!-- [et_pb_line_break_holder] -->  \"itemListElement\": [<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"ListItem\",<!-- [et_pb_line_break_holder] -->      \"position\": 1,<!-- [et_pb_line_break_holder] -->      \"name\": \"Over-Production Waste\"<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"ListItem\",<!-- [et_pb_line_break_holder] -->      \"position\": 2,<!-- [et_pb_line_break_holder] -->      \"name\": \"Over-Processing Waste\"<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"ListItem\",<!-- [et_pb_line_break_holder] -->      \"position\": 3,<!-- [et_pb_line_break_holder] -->      \"name\": \"Transport Waste\"<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"ListItem\",<!-- [et_pb_line_break_holder] -->      \"position\": 4,<!-- [et_pb_line_break_holder] -->      \"name\": \"Motion Waste\"<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"ListItem\",<!-- [et_pb_line_break_holder] -->      \"position\": 5,<!-- [et_pb_line_break_holder] -->      \"name\": \"Waiting Waste\"<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"ListItem\",<!-- [et_pb_line_break_holder] -->      \"position\": 6,<!-- [et_pb_line_break_holder] -->      \"name\": \"Inventory Waste\"<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"ListItem\",<!-- [et_pb_line_break_holder] -->      \"position\": 7,<!-- [et_pb_line_break_holder] -->      \"name\": \"Defects Waste\"<!-- [et_pb_line_break_holder] -->    }<!-- [et_pb_line_break_holder] -->  ]<!-- [et_pb_line_break_holder] -->}<\/script>[\/et_pb_code][et_pb_code _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is warehouse waste management?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Warehouse waste management refers to the practice of minimizing waste and maximizing efficiency in the warehouse by focusing on key areas such as over-production, over-processing, transport, motion, and waiting times.\"}},{\"@type\":\"Question\",\"name\":\"Why is warehouse waste management important for business operations?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Efficient warehouse waste management is essential for businesses as it helps to reduce costs, improve efficiency, increase profitability, and decrease the environmental impact of operations.\"}},{\"@type\":\"Question\",\"name\":\"How does over-production contribute to warehouse waste?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Over-production in warehouse management means producing more goods than needed, leading to excess inventory. 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background_color_gradient_stops=&#8221;#6717cd 0%|#2d6ef9 100%&#8221; background_color_gradient_start=&#8221;#63a2d9&#8243; background_color_gradient_end=&#8221;#3469b2&#8243; custom_margin=&#8221;0px||0px||false|false&#8221; custom_padding=&#8221;30px|30px|50px|30px|false|false&#8221; border_radii=&#8221;on|12px|12px|12px|12px&#8221; box_shadow_style=&#8221;preset1&#8243; box_shadow_vertical=&#8221;0px&#8221; box_shadow_blur=&#8221;10px&#8221; box_shadow_color=&#8221;rgba(74,75,109,0.09)&#8221; saved_tabs=&#8221;all&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; custom_margin=&#8221;||20px||false|false&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; header_2_text_align=&#8221;center&#8221; header_2_text_color=&#8221;#FFFFFF&#8221; header_2_line_height=&#8221;32px&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;||0px||false|false&#8221; custom_css_main_element=&#8221;text-align: center !important;&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h2 class=\"animated growIn slower go\" data-id=\"1\"><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Mobilize everything to understand how your employees move and operate in your warehouse&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:897,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:1,&quot;11&quot;:4,&quot;12&quot;:0}\">Mobilize everything to understand how your employees move and operate in your warehouse<\/span><\/h2>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_3,1_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;2&#8243; make_equal=&#8221;on&#8221; module_class=&#8221;blog-callout-tiles&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;three-pl&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#FFFFFF&#8221; custom_padding=&#8221;30px|10px|60px|10px|false|false&#8221; box_shadow_style=&#8221;preset1&#8243; box_shadow_vertical=&#8221;13px&#8221; box_shadow_blur=&#8221;30px&#8221; box_shadow_color=&#8221;rgba(74,75,109,0.37)&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_3_text_align=&#8221;center&#8221; header_3_text_color=&#8221;#413885&#8243; text_orientation=&#8221;center&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 style=\"text-align: center;\">3PL<\/h3>\n<p>Cloud 3PL software for high-volume fulfillment excellence<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"more\"><a class=\"read-more\" href=\"https:\/\/www.logiwa.com\/industries\/cloud-3pl-software\">Cloud Based<br \/>3PL Software<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;warehouse-management&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#FFFFFF&#8221; custom_padding=&#8221;30px|10px|60px|10px|false|false&#8221; box_shadow_style=&#8221;preset1&#8243; box_shadow_vertical=&#8221;13px&#8221; box_shadow_blur=&#8221;30px&#8221; box_shadow_color=&#8221;rgba(74,75,109,0.37)&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_3_text_align=&#8221;center&#8221; header_3_text_color=&#8221;#413885&#8243; text_orientation=&#8221;center&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 style=\"text-align: center;\">Warehouse Management<\/h3>\n<p>Modern digital WMS powers a modern fulfillment experience<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"more\"><a class=\"read-more\" href=\"https:\/\/www.logiwa.com\/solutions\/digital-warehouse-management-software\">Cloud Based<br \/>WMS Software<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;inventory-management&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#FFFFFF&#8221; custom_padding=&#8221;30px|10px|60px|10px|false|false&#8221; box_shadow_style=&#8221;preset1&#8243; box_shadow_vertical=&#8221;13px&#8221; box_shadow_blur=&#8221;30px&#8221; box_shadow_color=&#8221;rgba(74,75,109,0.37)&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_3_text_align=&#8221;center&#8221; header_3_text_color=&#8221;#413885&#8243; text_orientation=&#8221;center&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 style=\"text-align: center;\">Inventory Management<\/h3>\n<p>Improve your inventory across your supply chain.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"more\"><a class=\"read-more\" href=\"https:\/\/www.logiwa.com\/industries\/ecommerce-inventory-management-software\">Cloud Based<br \/>IMS Software<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Top 7 Warehouse Wastes and How to Eliminate Them In this article, we&#8217;ll explore the concept of warehouse waste, its detrimental impact on operational efficiency and profits, and strategies to mitigate it. Drawing on principles from lean manufacturing and continuous improvement, you&#8217;ll learn how to identify the seven most common types of warehouse waste [&hellip;]<\/p>\n","protected":false},"author":29,"featured_media":9759,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"Analysts expect the <a href=\"https:\/\/www.businesswire.com\/news\/home\/20180705005454\/en\/Global-Warehousing-Storage-Market-2018-2022-Key-Factors\" target=\"_blank\" rel=\"noopener\">global warehouse industry to grow at a compound annual growth rate of nearly 6% <\/a>\u00a0over the next four years. As consumer expectations around fulfillment rise, we will need more and more warehouses to meet them.\r\n\r\n<!--more-->\r\n\r\nThe warehouses that succeed will steadily grow their business while carefully managing their operating costs to remain profitable. To this end, lean principles and lean manufacturing have become a popular strategy for warehouses who wish to streamline their processes, practice continuous improvement, reduce excessive inventory, and eliminate warehouse waste.\r\n<h2>The Most Common Types of Warehouse Waste<\/h2>\r\n<h4>What is Lean Manufacturing?<\/h4>\r\nBefore we dive in, let\u2019s talk about lean manufacturing and what exactly it means. A management philosophy based on Toyota\u2019s innovative manufacturing system, the Toyota Production System (TPS), lean manufacturing became popular as companies prioritized \u201cmake to order\u201d versus \u201cmake to stock.\u201d Today, lean manufacturing also focuses on continuous improvement which is about constantly striving for perfection and refusing to accept inefficient or problematic methods.\r\n\r\n<!-- Table of Contents -->\r\n<div class=\"blog-toc\">\r\n\r\nLean manufacturing identifies 7 types of warehouse waste:\r\n<ol>\r\n \t<li><a href=\"#1\" rel=\" noopener\">Over-production<\/a>\r\n<ol style=\"list-style-type: upper-roman;\">\r\n \t<li><a href=\"#2\" rel=\"noopener\">What Are the Common Causes of Over-Production Waste?<\/a>\r\n<ul>\r\n \t<li><a href=\"#3\" rel=\"noopener\">A Stubborn Commitment to Historical Processes<\/a><\/li>\r\n \t<li><a href=\"#4\" rel=\"noopener\">Inefficient Machinery<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><a href=\"#5\" rel=\"noopener\">How Can You Combat Over-Production?<\/a>\r\n<ul>\r\n \t<li><a href=\"#6\" rel=\"noopener\">Adopting a Data-Based Approach to Inventory Management<\/a><\/li>\r\n \t<li><a href=\"#7\" rel=\"noopener\">Upgrade Set-Up Capabilities of Machinery<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ol>\r\n<\/li>\r\n \t<li><a href=\"#8\" rel=\" noopener\">Over-processing<\/a>\r\n<ol style=\"list-style-type: upper-roman;\">\r\n \t<li><a href=\"#9\" rel=\"noopener\">What Are the Common Causes of Over-Processing Waste?<\/a><\/li>\r\n \t<li><a href=\"#10\" rel=\"noopener\">How Can You Combat Over-Processing?<\/a><\/li>\r\n<\/ol>\r\n<\/li>\r\n \t<li><a href=\"#11\" rel=\" noopener\">Transport<\/a>\r\n<ol style=\"list-style-type: upper-roman;\">\r\n \t<li><a href=\"#12\" rel=\"noopener\">What Are the Common Causes of Transport Waste?<\/a><\/li>\r\n \t<li><a href=\"#13\" rel=\"noopener\">How Can Warehouse Owners Combat Transport Waste?<\/a><\/li>\r\n<\/ol>\r\n<\/li>\r\n \t<li><a href=\"#14\" rel=\" noopener\">Motion<\/a>\r\n<ol style=\"list-style-type: upper-roman;\">\r\n \t<li><a href=\"#15\" rel=\"noopener\">What Are the Common Causes of Motion Waste?<\/a><\/li>\r\n \t<li><a href=\"#16\" rel=\"noopener\">How Can You Combat Motion Waste?<\/a><\/li>\r\n<\/ol>\r\n<\/li>\r\n \t<li><a href=\"#17\" rel=\" noopener\">Waiting<\/a>\r\n<ol style=\"list-style-type: upper-roman;\">\r\n \t<li><a href=\"#18\" rel=\"noopener\">What Are the Common Causes of Waiting Waste?<\/a><\/li>\r\n \t<li><a href=\"#19\" rel=\"noopener\">How Can You \u00a0Combat Waiting Waste?<\/a><\/li>\r\n<\/ol>\r\n<\/li>\r\n \t<li><a href=\"#20\" rel=\"noopener\">Inventory<\/a>\r\n<ol style=\"list-style-type: upper-roman;\">\r\n \t<li><a href=\"#21\" rel=\"noopener\">What Are the Common Causes of Inventory Management Waste?<\/a><\/li>\r\n \t<li><a href=\"#22\" rel=\"noopener\">How Can You \u00a0Combat Inventory Management Waste?<\/a><\/li>\r\n<\/ol>\r\n<\/li>\r\n \t<li><a href=\"#23\" rel=\" noopener\">Defects<\/a>\r\n<ol>\r\n \t<li><a href=\"#24\" rel=\"noopener\">What Are the Common Causes of Defects Waste?<\/a><\/li>\r\n \t<li><a href=\"#25\" rel=\"noopener\">How Can You \u00a0Combat Defects?<\/a><\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n<\/div>\r\n<h3 id=\"1\">1. Over-Production Waste<\/h3>\r\nWhen you produce more products than your customers want or faster than they need them, you get over-production waste. It leads to excess inventory which raises the cost of managing stock.\r\n\r\n<img style=\"width: 728px;\" src=\"https:\/\/f.hubspotusercontent30.net\/hubfs\/3469233\/Website%20Assets\/Blog\/Stack-of-cardboard-delivery-730x548-tinified.png\" alt=\"Stack-of-cardboard-delivery-730x548-tinified\" width=\"728\" \/>\r\n\r\nIn addition, you may decide to limit production until clearing inventory, leading to reduced employment. While this may sound like a straightforward solution, reducing employee work in the short term can lead to attrition, effectively costing your company more money in recruitment efforts and last-minute hires.\r\n\r\n<!-- In-Page Optin Box -->\r\n<p class=\"in-content-optin\"><strong>Better Warehouse Performance = Higher Profit Margins:<\/strong> Logiwa syncs accurate data across your entire interface so the inventory numbers you see on your dashboard are what your employees see on their devices. <a href=\"\/resources\/whitepapers\/warehouse-management-software\" target=\"_blank\" rel=\"noopener\"> Learn how Logiwa uses real-time data to help you get up to 100% inventory accuracy and 2.5x shipments.<\/a><\/p>\r\n\r\n<h3 id=\"2\">What Are the Common Causes of Over-Production Waste?<\/h3>\r\n<h4 id=\"3\">A Stubborn Commitment to Historical Processes<\/h4>\r\nSkeptical managers often continue doing what they\u2019ve always done. If you've \u00a0always ordered a specific amount of product, you may stay the course, even if you wind up with more products than needed.\r\n<h4 id=\"4\">Inefficient Machinery<\/h4>\r\nSome machines have long set-up times. Rather than addressing the underlying cause \u2014 the need for efficient machines \u2014 choosing \u00a0to maximize production while the machines are running to produce batch orders can cause over-production waste\r\n<h3 id=\"5\">How Can You Combat Over-Production?<\/h3>\r\nOver-production is one of the most pernicious forms of warehouse waste. It hides the underlying problems in your organization such as poor processes and old machinery, thereby creating operating costs that silently eat away at your bottom line. You can adopt the following strategies to limit over-production.\r\n<h4 id=\"6\">Adopting a Data-Based Approach to Inventory Management<\/h4>\r\nMany lean manufacturing proponents prefer a pull manufacturing strategy in which products are made based on orders, not forecasts.\r\n\r\nNot ready to adopt a full \u201cjust in time\u201d inventory strategy? Consider taking a math-based or data-based approach to your inventory management. Rather than playing it by ear, base your orders on a <a href=\"https:\/\/www.logiwa.com\/blog\/safety-stock\">safety stock formula<\/a> that incorporates your standard deviation in supplier lead time and demand averages. This will limit inventory costs without completely eliminating buffer stock. If you use a <a href=\"\/\" rel=\"noopener\">warehouse management system (WMS)<\/a>, this tool should automatically generate this information.\r\n<h4 id=\"7\">Upgrade Set-Up Capabilities of Machinery<\/h4>\r\nInstead of batch production, you can evaluate your existing machinery. This might include:\r\n<ol>\r\n \t<li><strong>Replacing machinery altogether: <\/strong>You can detail its specifications, such as desired start-up time, and replace or upgrade equipment as needed.<\/li>\r\n \t<li><strong>Employing existing equipment more effectively:<\/strong> You can run existing machines more efficiently through upgrades or educating operators.<\/li>\r\n \t<li><strong>Increasing the amount of time existing equipment is used:<\/strong> Rather than replacing existing machines, you can limit over-production and allocate money for potential overtime to operate existing machines if demand unexpectedly rises. This may not be a good long-term strategy depending on how often this occurs.<\/li>\r\n \t<li><strong>Outsourcing manufacturing needs:<\/strong> Rather than blowing money on carrying costs, you can \u00a0consider outsourcing some of your manufacturing needs when demand fluctuates. This may not be a sustainable long-term strategy considering the urgency with which these orders may be needed.<\/li>\r\n<\/ol>\r\n<h3 id=\"8\">2. Over-Processing Waste<\/h3>\r\nOver-processing is <a href=\"http:\/\/leanmanufacturingtools.org\/121\/waste-of-overprocessing-causes-symptoms-examples-and-solutions\/\" target=\"_blank\" rel=\"noopener\">doing more work than required<\/a>, such as painting a section of a product that the customer will never see. Unlike over-production or inventory waste, over-processing waste is a little harder to assess. It\u2019s sometimes difficult to gauge when a necessary task, such as quality checks, becomes over-processing, such as over-stringent company policies.\r\n\r\nLeft unchecked, over-processing raises labor costs and leads to unneeded wear and tear to your \u00a0equipment. It also reduces your company\u2019s ability to add value in areas customers actually care about.\r\n<h3 id=\"9\">What Are the Common Causes of Over-Processing Waste?<\/h3>\r\nOftentimes, over-processing waste arises from ambiguity. Poorly developed standards, processes, and specifications leave judgement about work and due diligence up to staff. Methods used by employees during different shifts vary, leading to fluctuations in productivity. In addition, poorly developed processes also increases the amount of repeated work.\r\n<h3 id=\"10\">How Can You Combat Over-Processing?<\/h3>\r\nTo start, you can create <a href=\"https:\/\/www.template.net\/editable\/5807\/warehouse-standard-operating-procedure\" target=\"_blank\" rel=\"noopener\">Standard Operating Procedures (SOP)<\/a> that provide clear guidance to employees about your warehouse processes. You can develop your SOP by consulting with relevant stakeholders, such as your employees, understanding the scope of the SOP (multiple processes, multiple machinery, etc.), documenting the procedure, and brainstorming possible issues with the revised procedure before presenting a final version.\r\n\r\nMoreover, assess your current processes in terms of cost and compliance. Are you being overly cautious with your existing processes? Is there a cheaper alternative to a currently expensive process? Consider these elements as well while addressing over-processing waste.\r\n<h3 id=\"11\">3. Transport Waste<\/h3>\r\nWhen warehouses move products unnecessarily, they contribute to transport waste. Transport waste leads you to rent or purchase unneeded warehouse space and excessive inventory. You may also face increased energy costs and forklift operations, and more.\r\n\r\nConsidering the many ways transport waste impacts your operating costs, it\u2019s no wonder it\u2019s taken so seriously by lean principles practitioners.\r\n<h3 id=\"12\">What Are the Common Causes of Transport Waste?<\/h3>\r\nThe most common causes of transport waste are:\r\n<ol>\r\n \t<li><strong>Poor <\/strong><a href=\"\/blog\/optimize-warehouse-layout\" rel=\" noopener\"><strong>warehouse layout<\/strong><\/a><strong>:<\/strong> Machines used sequentially aren\u2019t placed close to each other, resulting in unnecessarily long trips to and from.<\/li>\r\n \t<li><strong>Double handling:<\/strong> If you place new arriving stock in a buffer storage area with pallet racking (one trip) before moving that material to the pick face (a second trip). This results in double handling. Products with high customer demand, and therefore with higher pick face replenishment rates, exacerbate the problem.<\/li>\r\n \t<li><strong>Inventory shuffling for accessibility: <\/strong>Workers move inventory around to access other stock due to poorly organized sections.<\/li>\r\n \t<li><strong>Large batch sizes: <\/strong>Properly storing a large batch may require multiple trips, which is immensely wasteful if the large batch sizes contribute to other types of warehouse waste such as over-production, inventory, and motion waste.<\/li>\r\n \t<li><strong>Multiple storage locations:<\/strong> You store the same products in multiple locations.<\/li>\r\n<\/ol>\r\n<p id=\"13\"><span style=\"color: inherit; font-family: inherit; font-size: 24px; font-weight: bold; background-color: transparent;\">How Can Warehouse Owners Combat Transport Waste?<\/span>\r\nThere are several ways to address transport waste. For starters, managers should rethink the layout and align it to warehouse processes so that a machine needed for Step 2 is located near the machine for Step 1. In addition, pallet flow racks may be a worthwhile investment.<\/p>\r\nPallet flow racks allows more stock to sit in the pick-face, limiting the amount sitting in buffer storage and thereby reducing double handling. Finally, a reorganization of storage can address inventory shuffling and the presence of multiple storage locations.\r\n\r\n<a href=\"https:\/\/www.logiwa.com\/resources\/guides\/order-picking-guide\" rel=\" noopener\"><img style=\"width: 730px;\" src=\"https:\/\/f.hubspotusercontent30.net\/hubfs\/3469233\/chub_backup\/Order%20Picking%20Methods%20Guide.png\" alt=\"Order Picking Methods Guide\" width=\"730\" \/><\/a>\r\n<h3 id=\"14\">4. Motion Waste<\/h3>\r\nThink of all the people running around to keep a warehouse operational. Undoubtedly, these individuals work incredibly hard, but they often work harder than they need to. When people move more than necessary, this is known as motion waste.\r\n\r\nMotion waste is distinct from transport waste. While the former refers to the movement of <i>people, <\/i>the latter deals with the movement of <i>products. <\/i>\r\n<h3 id=\"15\">What Are the Common Causes of Motion Waste?<\/h3>\r\nUltimately, motion waste comes down to a poor layout, poor organization of products and tools, and limited space. Poor processes and work methods can also be the cause of motion waste if a specific task requires extensive manipulation of a particular tool or product.\r\n<h3 id=\"16\">How Can You Combat Motion Waste?<\/h3>\r\nYour employees can provide valuable insight into what is and isn\u2019t working, which tasks are needlessly taxing, and which processes are downright ridiculous. They can quickly identify which areas require reorganization and provide guidance on how to organize the warehouse more efficiently.\r\n\r\nYou can invest time into a 5S training exercise in which workers apply the following steps towards improving processes:\r\n<ol>\r\n \t<li>Sort<\/li>\r\n \t<li>Set in Order<\/li>\r\n \t<li>Shine<\/li>\r\n \t<li>Standardize<\/li>\r\n \t<li>Sustain<\/li>\r\n<\/ol>\r\nYou can use the 5S exercise to create an environment built around efficiency and continuous improvement. We found an example exercise you can look at here.\r\n<h3 id=\"17\">5. Waiting Waste<\/h3>\r\nTime is a precious resource and many warehouses casually waste it. Examples of waiting waste are:\r\n<ul>\r\n \t<li>People waiting while a machine processes\/produces a specific product<\/li>\r\n \t<li>Products waiting to go through the next step in the assembly line<\/li>\r\n \t<li>Products waiting for shipping to a store, back to the customer, etc.<\/li>\r\n \t<li>Equipment sitting idly because of bottlenecks<\/li>\r\n<\/ul>\r\nAll of these examples can impact your ability to utilize people, processes, and technology effectively. Fortunately, experts have investigated the common causes of waiting waste and developed solutions for this problem.\r\n<h3 id=\"18\">What Are the Common Causes of Waiting Waste?<\/h3>\r\nWaiting waste occurs for a number of reasons such as:\r\n<ul>\r\n \t<li>Unscheduled downtime<\/li>\r\n \t<li>Poor internal communications<\/li>\r\n \t<li>Production bottlenecks<\/li>\r\n \t<li>Long set up times<\/li>\r\n \t<li>Labor shortages<\/li>\r\n \t<li>Poorly developed processes<\/li>\r\n \t<li>Unscheduled employee absences<\/li>\r\n<\/ul>\r\nA warehouse experiencing waiting waste rarely suffers from all these problems, but they\u2019ll certainly experience a couple. Once they identify the cause, it\u2019s easier to treat and eliminate the problem.\r\n<h3 id=\"19\">How Can You \u00a0Combat Waiting Waste?<\/h3>\r\nThere are several strategies you can employ to eliminate waiting waste. Often, this means redesigning existing warehouse processes and workflows to ensure the continuous movement of product and activity of employees.\r\n\r\nAnother common cause of \u201cwaiting waste\u201d is machine downtime. You can consider the following solutions to the downtime issue.\r\n<h4>Practice Preventative Maintenance<\/h4>\r\nUnderstand the cost and repair time for various equipment. Unbeknownst to you, a critical machine may require a part that is manufactured overseas, delaying a repair by weeks. Preparing for such scenarios is essential.\r\n\r\nYou can prepare for such scenarios through preventative maintenance. Traditionally, preventative maintenance simply meant routine \u201ccheck ups.\u201d Today, <a href=\"\/blog\/reduce-costs-improve-warehouse-efficiency\" target=\"_blank\" rel=\"noopener\">warehouses employ low-cost <\/a> by analyzing variables such as temperature, vibration, heat, and light.\r\n<h4>Standardize Training Across Your Team<\/h4>\r\nOperator error is one of the <a href=\"https:\/\/www.fiixsoftware.com\/blog\/3-causes-of-equipment-failure-and-what-you-can-do-to-prevent-it\/\" target=\"_blank\" rel=\"noopener\">most common causes of machine failure<\/a>. Operators often receive extensive training on operating, maintaining, and troubleshooting specialized machinery, but there are times where labor shortages require you to shuffle the team. While the pinch hitter may be technically qualified, they may lack hands-on experience, increasing the likelihood of errors. Managers should consider cross-training employees to ensure they have ample experience operating critical machinery. In this way, almost any employee can replace an absent employee.\r\n<h3 id=\"20\">6. Inventory Waste<\/h3>\r\nInventory waste is the unnecessary accumulation of everything from raw materials to work-in-progress (WIP) materials to finished products. Every piece of excessive inventory costs money, and this ties up cash, negatively impacting a warehouse\u2019s cash flow. If your business is already cash poor and using financing options to manage carrying costs, the accompanying interest payments bring further strain. Examples of carrying costs include, but are not limited to:\r\n<ul>\r\n \t<li>Rent\/storage costs<\/li>\r\n \t<li>Insurance premiums<\/li>\r\n \t<li>Spoilage<\/li>\r\n \t<li>Interest payments<\/li>\r\n<\/ul>\r\nLean principles promote just in time (JIT) manufacturing, meaning companies limit the amount of time materials spend in production or final products sit on shelves. They produce what\u2019s needed, when it\u2019s needed, and produce minimal to no excessive inventory.\r\n\r\n<!-- In-Page Optin Box -->\r\n<p class=\"in-content-optin\"><strong>BONUS:<\/strong> Before you read further, download our Warehouse Management Software Whitepaper to see <a href=\"\/resources\/whitepapers\/warehouse-management-software\" target=\"_blank\" rel=\"noopener\">how Logiwa uses real-time data to help you get up to 100% inventory accuracy and execute advanced fulfillment strategies like wave planning.<\/a><\/p>\r\n\r\n<h3 id=\"21\">What Are the Common Causes of Inventory Management Waste?<\/h3>\r\nOver-production often causes inventory waste. When business owners stubbornly stick to gut-based forecasting methods, fail to introduce efficiencies to limit bulk production, and lack faith in their suppliers, they create the conditions for over-production which in turn leads to inventory waste as well as motion and transport waste.\r\n<h3 id=\"22\">How Can You Combat Inventory Management Waste?<\/h3>\r\nAddressing over-production waste effectively reduces inventory waste. This means taking a data-driven approach to inventory management, improving the set-up times of machines or replacing them altogether, and building a stronger relationship with suppliers.\r\n\r\nUsing a WMS that\u2019s fully integrated with your sales and shipping channels, not to mention your warehouse systems, can help you gather the data you need to get get rid of inventory management waste.\r\n<h3 id=\"23\">7. Defects Waste<\/h3>\r\nDefects waste occurs when warehouses make mistakes during processing or produce faulty products that need to be re-made or shipped back. In the event of a full recall, your warehouse may be unable to handle the surge of returned inventory. Even if your warehouse can manage it, it\u2019s a strain on your resources.\r\n\r\nSimply speaking, any mistakes during warehouse processes can fall into the category of defects waste. Examples of defects waste include:\r\n<ul>\r\n \t<li>Incorrect data entry for orders<\/li>\r\n \t<li>Incorrect or missing deliveries<\/li>\r\n \t<li>Returned inventory without the appropriate paperwork<\/li>\r\n<\/ul>\r\n<h3 id=\"24\">What Are the Common Causes of Defects Waste?<\/h3>\r\nDefects waste is usually caused by poor training, unclear procedures and warehouse processes, operating errors, and bad suppliers.\r\n<h3 id=\"25\">How Can You Combat Defects?<\/h3>\r\nWarehouses combat defects waste by taking the following steps:\r\n<ul>\r\n \t<li>Assessing existing warehouse processes and improving them<\/li>\r\n \t<li>Assessing the training\/skills of current employees and re-training where necessary<\/li>\r\n \t<li>Evaluating current suppliers to ensure they are meeting agreed-upon service level agreements and ending the relationship with suppliers who fail to do so<\/li>\r\n<\/ul>\r\nReducing your defects waste can also limit other sources of warehouse waste such as excessive inventory.\r\n<h3>Eliminating Warehouse Waste Leads to Efficient and Profitable Companies<\/h3>\r\nReducing and eliminating warehouse waste allows you \u00a0to focus on adding value in the right places, prioritize the right activities, and strive to perfect your manufacturing \u00a0processes. Indeed, eliminating one type of warehouse waste, such as over-production waste, often contributes to the reduction of others like waiting and inventory waste.\r\n\r\nThe warehouse industry is booming. By using lean principles and continuous improvement strategies, you can build and grow an efficient and profitable company.\r\n\r\nInterested in learning about more <a href=\"\/inventory-management-software\" rel=\" noopener\">inventory management<\/a> best practices? Read our annual guide by clicking here.","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[34,33,36],"tags":[],"class_list":["post-1101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventory-management","category-warehouse-management","category-wms"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.1 (Yoast SEO v25.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Warehouse Wastes | Logiwa | WMS<\/title>\n<meta name=\"description\" content=\"Warehouse wastes hinder growth and profitability. 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