Over the coming weeks, we’ll share lots of tips on how to set up your warehouse as a newcomer. You’ll get advice on structure, automation and the physical setup of your warehouse. Today is part 4 in the automation category.

Automate everything

Automate as many tasks and actions as possible. Anything that repeats regularly can be automated, so do it. And do it as soon as you can, even if your business is still small.

Many small webshops think they don’t need much automation yet. Things aren’t that busy, and it’s fine to do some things manually. But unfortunately, they often forget to automate later on. When things do get busy, they end up just hiring more people or outsourcing the warehouse because they can no longer keep up.

But as a small webshop, you actually stand to benefit the most from automation. Here’s why:

• Automation is much easier in a small warehouse.
• It’s cheaper and leaves less room for errors.
• You have time early on to figure out what works best for you, before things get really busy.
• You’ll be able to grow more easily and handle busy periods with less effort, because each order takes less time to process.
• As a small webshop, you probably work with a small team. Automation helps you focus your time on more valuable tasks, like sales and marketing, instead of manually copying addresses.

That’s why we always say: “Automate as much as possible, as soon as possible.”

Tip 4: Always know your stock levels

Make sure you always know how many units of each product you have in stock, how many are already reserved for customers, and how many are still incoming. You need this information to inform customers about product availability and to place purchase orders.

You could keep track of it in an Excel sheet, but that’s not ideal. Excel doesn’t let you track history, it’s hard to use with multiple people, and your stock can’t update automatically when an order comes in. That means your stock list is almost always outdated.

Keep track of your inventory in a structured database that updates automatically when an order arrives. Most webshop platforms can do this to some extent. But many only track “available stock,” which is immediately reduced when an order comes in. That means you won’t know how much is actually on the shelf or how many items still need to be shipped. You’ll also likely miss information about outstanding purchase orders.

If you want to do it properly, you need an easy-to-use WMS that connects directly to your webshop. We’ll talk more about that in the next tip. Or try out how Picqer can improve your warehouse in the meantime.

Our previous tips

• Tip 1: Make sure everyone knows the process
• Tip 2: Complete each order in one go
• Tip 3: Reduce exceptions

Over the coming weeks, we’ll share lots of tips on how to set up your warehouse as a newcomer. You’ll get advice on structure, automation and the physical setup of your warehouse. Today is part 3 in the structure category.

Tip 3: Reduce exceptions

Exceptions go wrong more often and can cost a lot of money. So make sure you have as few exceptions as possible in your warehouse. We often hear that exceptions are key to great service, but even then you can reduce the number of exceptions or standardize them. The goal is that everyone knows exactly what to do in any situation, with as little improvisation as possible.

Make sure, for example, that you have a fixed shipping carrier and fixed rates for every type of shipment you handle. That way you won’t need to start making calls if you suddenly have a pallet shipment. Only ship pallets once or twice a month? Then make sure that process is also standardized and everyone knows exactly what to do. This reduces the need for coordination, lowers the chance of mistakes, saves time, and provides clarity for your customers.

You can also think about reducing the number of box sizes. It’s cheaper and easier to work with four box sizes instead of eight. Of course, this depends on the products you ship, but take a look to see if you can manage with fewer sizes. Maybe even your current three are already too many...

Also read Tip 1 Make sure everyone knows the process and Tip 2 Complete each order in one go.

Over the coming weeks, we’ll share lots of tips on how to set up your warehouse as a newcomer. You’ll get advice on structure, automation and the physical setup of your warehouse. Today is part 2 in the structure category.

Tip 2: Complete each order in one go

Sometimes it seems convenient to do everything in batches: first print all picklists, then collect all products from the shelves, then pack everything in boxes, and only at the end of the day create the shipping labels.

Unfortunately, especially in small warehouses, this is a false sense of efficiency. You often handle the same products and boxes multiple times and need more space to lay out ongoing orders. You also have to read the same picklist over and over to see what needs to be done. These repeated steps and unnecessary movements end up costing more time than batching saves.

Set up your process so that you grab one picklist, collect the products, pack them in a box, mark the picklist as complete in the software, create the shipping label and stick it on the box. Make sure you complete the entire order in one go so you can immediately set it aside for the shipping carrier. We’ve introduced this method in many warehouses, and it has led to more calm and greater efficiency.

An added benefit is that your warehouse remains flexible. You can keep up with incoming orders throughout the day. And if something interrupts your work, only untouched orders pile up—many others will already be fully finished.

Also read Tip 1: Make sure everyone knows the process

Over the coming weeks, we’ll share lots of tips on how to set up your warehouse as a newcomer. You’ll get advice on structure, automation and the physical setup of your warehouse. Today is part 1 in the structure category.

Tip 1: Make sure everyone knows the process

In many small warehouses, there’s often one person who knows and does everything, while everyone else only handles specific tasks. This is a common source of stress and problems. The know-it-all gets constantly interrupted with unnecessary questions, and others are much less productive because they don’t understand the full process. And that’s not even mentioning what happens when the know-it-all is sick.

Make sure everyone who works in the warehouse, even occasionally, knows how the process works, how to use all the tools (both hardware and software), and where to find everything. This brings several benefits:

• It forces you to keep the process and tools relatively simple. Otherwise, you’ll never be able to explain it to everyone.
• It reduces stress, and your warehouse will run much more smoothly when everyone can work independently.
• You’ll be more flexible when handling busy periods or sick leave.

Also, write the process down. Writing helps you think things through more clearly, and it makes it easier for the team to review details when needed.

Extra tip: occasionally have someone from marketing or customer support spend time working in the warehouse. It’s a nice change of pace, and it helps them stay connected with the overall business process. They can also jump in to help during busy periods or sick leave.

What are product codes and how should they be structured? These are common questions when setting up a warehouse for the first time. In this blog, we answer those questions.

What is a product code?

A product code is a unique number that refers to a specific product. In English, it's often called an SKU, which stands for Stock Keeping Unit. There is no standard way to create product codes, so you're free to decide how to structure them. However, it’s important to think it through in advance because changing codes later can lead to confusion.

Product codes help prevent confusion

A product code or SKU should always refer to just one product, helping to avoid misunderstandings. For example, a single product might be a "Hema women's t-shirt blue size L." The product code should also cover all options like size and color. A customer should be able to place an order using just the product code, and you should instantly know which item they mean without asking follow-up questions.

The easy way: use manufacturer product codes

If the products you purchase already have clear product codes from the manufacturer, it’s often easiest to use those. You won’t have to invent codes yourself, and the manufacturer’s codes are already printed on packaging. It also makes purchasing easier.

If you choose to create your own codes, keep the following tips in mind:

Don’t start with a zero

Avoid product codes that begin with a zero (0). Many programs, such as Excel, remove leading zeros, which can result in inconsistencies like using 00876 in one place and 876 in another. Starting with a non-zero digit prevents this issue.

Choose a fixed length

For consistency and readability, it's helpful to make all your product codes the same length, for example always 8 characters. If you use separators, always place them in the same position, like 872.87-771 and 325.65-355.

Sequential or structured codes

Whether you start with something simple like 1 and increment by one, or use structured codes, depends on your preferences. Each approach has pros and cons.

Sequential codes

You might start with A000001 for your first product and continue with A000002 for the next. This keeps things simple and chronological, showing the relative age of a product. However, this method doesn't group similar products together in lists, so sorting is better done by product name. For example, a new red version of product A000119 might become A002162 simply because it's the next available number.

Structured codes

The more common method is to use structured sequences, where elements like product category, brand, color, and size are embedded in the code. For example:

• 2 digits for the product category (e.g. 12 for pants)
• 4 digits for the product model (e.g. 4322 for G-star 301 2013 EU version)
• 2 digits for size (e.g. 04 for Large)
• 2 letters for color (e.g. NB for navy blue)

This makes the product code 12432204NB, or with separators 12.4322.04NB, which refers to the “G-star 301 pants, 2013 EU version, size L in navy blue.” This method makes sorting easier and helps your team and customers recognize patterns—for instance, knowing that 12 means pants and 04 means Large.

One downside to fixed formats is the potential for outgrowing them. For example, you might start with just one digit for size, thinking you only need 7 values, but two years later you may need more. Make sure to leave enough room for future variations.

You define your own structure since every type of product has its own characteristics and will need a different format.

Picqer supports you

In Picqer, each product code must be unique. We support any product code you can think of, up to 250 characters long, including separators and leading zeros. You can also save the supplier's product code in Picqer, in case you use a different internal code.