Common Warehouse Problems And Its Solutions
Time to time, warehouse managers have faced difficulties that come with the job.
Meaning common warehouse problems that happen often. So much so, that at times they get overlooked.
In the logistics and supply chain industry, having smooth warehouse operations is vital to successfully meet customer’s expectations. Thus, even simple and common troubles in the warehouse must not be ignored. When left unaddressed, some of these problems can snowball and cause bigger problems. Get things under control to balance trade-offs and maximize performance. Here are the common warehouse problems and it’s solutions.
Warehouses that have an optimal layout considers both the floor space and the available vertical space for use. Poor warehouse layout does not allow you to maximize the available storage space which results in inadequate storage, use of equipment and labor, and the accessibility and security of all items. This situation has inherent potential of negatively impacting profit.
The best solution to this common warehouse problem is ensuring that the highest-selling inventory is easily accessible and strategically placed at the most accessible point.
A bad tendency that still lingers on current warehousing practices is redundancy. Traditionally, this is due to employees likely handling a product several times because of the nature of the warehouse process. Passing the same ticket through multiple hands is one notable redundancy.
Although necessary at times, such redundant processes cause an increase in labor and are more time-consuming. One effective solution to this problem is to use arcode technology. This will eliminate the redundant tendency and while also maximizing resource utilization.
Inaccurate inventory is the root of problems such as maintaining improper stock levels and obsolete inventory buildup. Aside from that, it also contributes to higher expenses, loss of revenue, and low productivity.
Just like redundant processes, automation is key in solving this problem. Automated systems provide accurate information in real-time about stock levels and composition. On the other hand, a system of low quality retains the risks that come with an inaccurate inventory.
Fluctuations in Demand
Handling fluctuations in demand is a challenging task for warehousing managers. This is mainly because some of the factors that influence fluctuation cannot be controlled.
Tackling this challenge requires accurate and timely information about retailing, manufacturing, and the industry as a whole. Gaps in information between a warehouse and the industry limit the ability of distributors to monitor and respond to the changes in demand accordingly. The accuracy and timeliness of information are vital in planning and forecasting demand.
You can also consider rearranging products to match the change in demand. This helps in softening the blow that a warehouse takes when it fluctuates. Dealing with this problem also requires proper management of transportation networks and it’s strategic sourcing.
Lack of Communication
Warehouse facilities are managed and ran by teams wherein communication is imperative. Lack of communication can lead to commotion among team members and sometimes the customers.
Set regular meetings and be sure to maintain an open line of communication among all employees. Keep your customers updated regarding the latest information about your services, products, and policies.
The bottom line in solving these common warehouse problems is to have an effective system in place that will help you address them. Also, there is no one- size-fits-all solution. Approach any of these issues accordingly and think of a plan on how or what to do.
Angelo Castelda works as a contributor for a news magazine in Asia. On his free days, he likes to read books about the logistics industry, warehouse spaces, and warehouse management. He also gets frequently invited to schools and universities to hold talks about the supply chain system and warehouse operations.