Warehousing comprises of tedious routine and complex network of processes to fulfill orders and satisfy the needs and demands of customers. Issues and problems in warehouse management negatively impact the productivity and efficiency of the warehouses and disrupt the workflow. Today, we’ll discuss the top 10 challenges in warehouse operations and issues in warehouse management.
Top 10 Challenges in Warehouse Operations & Management
Let’s discuss the top 10 challenges in warehouse operations and warehouse management issues, and they’re as follows;
Poor Quality Control
It is difficult to maintain high quality when the company is dealing with hundreds of orders daily. They could easily overlook the key information while packing, picking, and shipping due to the high pressure of order processing. It results in the form of a poor shopping experience due to wrong or damaged products or poor packaging. However, proper and standard quality control processes would help the company to avoid the returned orders.
Diversified Stored Products
One of the top issues companies face is that 80% of the business sale comes from 20% of the warehousing inventory. It is challenging for businesses and companies to find 20% of the stock in the mass volume of diversified products; they have to shift the stock continuously. However, customer demand keeps on changing and warehouses need to store more stock to keep up with their changing demands.
Wrong and incorrect demand forecasting would result in the form of high product carrying costs and the stock would remain stuck on the shelves jeopardizing the company’s profitability. If the company maintains low stock, then it would lead to late order processing or unavailability of the stock.
Data Analysis & Management Issues
Warehouses deal with a lot of functions and processes and generate a significant amount of data and information. It is difficult to manage the process mass volume of data and gain valuable insight from it that could help the company to amplify its productivity and efficiency. However, SMEs don’t have enough budgets at their disposal to process data with sophisticated tools.
- Managing returned or damaged products
- Multiple delivery channels
- Dealing with logistical operations
- Tracking goods in the SC network
Poor Order Management
Customers have a lot of options while shopping online or offline with the latest technological developments. If the warehouse is integrated with an omnichannel sales network, then it is challenging for them to deal with customer orders coming from various sources. However, managing it manually with pen and paper or the Excel sheet, then it causes a plethora of errors.
- Offline sales channels
- E-commerce platform
- Company’s website
Weak Picking Method
Picking the ordered package in the warehouse is the most important step and it comprises various problems and errors. As soon as the customer places the order, the allocated person or robot has the obligation to pick the right package and fulfill the order. However, if there is a mistake or error in the picking stage, then it means that your order has gone to waste.
Roundabout 50% of the time is on the movement rather than picking the product. Warehouses should perform the picking process efficiently to decrease the time consumption and movement. A better warehouse automation system and inventory layout help you to amplify efficiency.
Warehouse management has no control over the changing customer demands and customer trends. Some factors that would impact customer demand is trending product, economic cycles, and seasonal changes. Changing customer demand poses a serious problem to the warehouses in terms of product order fulfillment. The sales would decline in some months and it would amplify the inventory level at other times.
Adapting Obsolete Methods
Digital warehouse management is trending, but many warehouses are still employing obsolete methods and processes. Some of the issues in warehouse management without outdated methods are as follows;
- Data entering manually
- Excessive product management
- Costly and time-consuming
Approximately 77% of businesses are serious about implementing automated warehousing systems and planning to amplify their performance and productivity. The latest technological tools and equipment would help you to streamline various warehousing processes and decrease the number of errors.
Wrong Employee Management
Approximately 65% of the warehousing budget goes to the labor cost. Employee management plays a key role in the efficient and effective management of warehouse operations to amplify overall growth and productivity. However, it is difficult to efficiently manage employees and the warehousing managers have to make a key decision about getting the maximum productivity from the workers.
Unproductive Space Utilization
Average warehouse space capacity utilization is roundabout 68% and it shows the inefficient utilization of warehouse spacing. Warehouses could employ floor space and vertical spacing to store maximum products with the optimum layout of the store. Poor warehouse management has a direct negative impact on the growth and productivity of the company.
Wrong Inventory Information
Wrong inventory information leads you to make series of problems and issues. There are like moving to pick the products from the place where it isn’t there; storing products in the wrong place that is out of space. Manual processes would cause wrong or inaccurate inventory information by building up obsolete inventory.
Conclusion: Challenges in Warehouse Management & Operations
After an in-depth study of the top 10 challenges in warehouse operations; we have realized that proper warehouse management is highly significant for companies. If you are learning about the issues in warehouse management; then you should keep in mind the abovementioned top 10 problems.
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