Rise of Ecommerce Demands Warehouse Efficiency

Consumers demand ecommerce. Thanks to the popularity of major retailers like Amazon, people are buying more goods online than ever before. One study conducted this year by eMarketer predicted that ecommerce sales would increase from $349 billion in 2015 to $548 billion by 2019. In order to keep up with this growth, businesses need more warehouses, as well as significant improvements to warehouse efficiency.

"Organization and layout are absolutely crucial for improving the movement of goods."

The latter is particularly important, as space is currently at a premium. About 97 percent is currently being rented, and rents rose by 9 percent in 2015, according to Business 2 Community.

Though there will certainly be a push to construct more warehouses, firms also know that they must use their existing spaces more efficiently if they are to meet demand.

Organization and layout are absolutely crucial for improving the movement of goods in and out of a warehouse. An article on Manufacturing Tomorrow argues that warehouses should be divided into sections so it is easy to determine where new arrivals should be stored.

In addition, color labeling improves inventory management and helps warehouse workers find the products that they need, even in a large space. In fact, it is hard to imagine any warehouse achieving significant efficiency gains without the use of color labeling and barcoding.

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