In warehousing, every time someone “touches” your inventory, be it, picking, scanning, moving, counting, relocating, etc., it costs you time, accuracy, and money.
The more touches your inventory experiences between inbound and outbound, the higher the chances of increasing the operational costs, labour requirements, and chances of error.
In fact, according to industry studies, each additional inventory touch can increase handling costs by 10–15% and compound error probabilities at every stage.
So, the golden rule of efficient warehousing? “Touch inventory as few times as possible.”
Let’s unpack what that really means — and how Warehouse Management Systems (WMS) help make it possible.
Top 5 Practical TOC Use Cases in Warehousing
1. The Packing Station That Controls Throughput
Pickers may be racing around with carts like F1 drivers. Still, if the pack bench is short of manpower or slow due to paperwork, everything stacks up. Cartons queue. Orders delay. TAT suffers.
Fix
More ergonomic packing setups, automation for labels, and auto-carton selection.
The moment the packing station moves faster, the whole warehouse output jumps.
2. Dock Doors Dictating Graceful Receiving
Inbound trucks often arrive in quick succession, much like buses at a busy depot. When only a couple of dock doors are available, pallets start piling up in the staging area. As a result, inventory updates slow down, replenishment takes longer, and overall fulfillment capacity drops.
Fix
Slot trucks in precise windows, cross-dock fast movers, and add temporary inflow zones. Receiving becomes the rhythm-keeper for the warehouse heartbeat.
3. MHE Shortages Turn Into Invisible Traffic Jams
There may be plenty of pickers on the floor, but only two reach trucks to go around. Soon, everyone’s waiting in line for the same equipment. Work slows, productivity stalls, and inventory remains stranded in the high bays.
Fix
Smart scheduling of high-reach activities, dedicated MHE for peak windows, and leasing during festival spikes. Suddenly, the aisles feel wide open again.
4. Replenishment Delays Break the Picking Flow
Pickers reach empty shelves and head to supervisors for help. A replenishment task gets raised, but by the time it’s executed, ten valuable minutes have already vanished into the warehouse void.
Fix
Predictive replenishment tied to order waves. The constraint moves back to actual order velocity instead of empty racks.
The goal: pickers never stop moving.
5. Slow Zones Drag Down the Whole Network
Broken racks, narrow aisles, and poor product slotting can turn one area into a productivity dead zone. Orders that enter seem to vanish for ages, slowing down the entire warehouse flow.
Fix
Re-slot based on velocity and cube movement. Shift your constraint from space inefficiency to meaningful productivity.
Why TOC Works So Well in Warehousing
Flywheel Effect
Fix constraint → Throughput increases → Revenue grows → More cash to upgrade the next constraint.
It becomes a winning loop where warehouses constantly level up.
Quick TOC Checklist for Warehouse Leaders
- Find the single biggest bottleneck
- Improve it with urgency
- Protect that constraint from disruptions
- Re-evaluate once the constraint shifts
- Celebrate the leap in performance
Nothing mystical here. Just a powerful mindset shift!
Conclusion
The baseline of Theory of Constraints in this industry space is that finding and fixing one constraint can unlock exponential potential for your business. With mindful planning and thoughtful execution, fixing the constraints are a sure-fire method for continued success.