Warehouse managers have a never-ending task of ensuring storehouses run smoothly. However, their jobs are no easy task since every concern in warehouse management needs an in-depth solution. Besides, issues like security, cost control, and cleanliness affect operations in the warehouse.
That’s why most companies seek inventory management consulting services. These services handle inventory issues, ensuring the manager has control over records. As a result, running the warehouse becomes much easier. Below are the core concerns of warehouse management. Experts recommend learning about these issues to help develop solutions.
Fundamental Issues in Warehouse Management
Warehouse management touches on six factors. These include accuracy, cost control, security and safety and cleanliness. Each of these needs complex processes to run, thus presenting issues for warehouse managers. Here’s a breakdown for a better understanding:
- Redundant Warehouse Operations
Redundant processes are time and energy-consuming. For instance, if an employee has to pass a ticket through many other people, it wastes resources. While doing so streamlines processes, there are better ways to ensure seamless operations in warehouses. Fortunately, using systems like barcoding eliminates redundancy and maximises resources.
- Poor Warehouse Layouts
Managers must utilise warehouse space fully to prevent wastage and acquisition of third-party storage. In addition, a poorly organised storehouse often leads to reduced profits. It’s more difficult to utilise employees and equipment to make processes faster. To get the perfect layout, factor in the available floor and vertical space.
Manufacturing and retail industries face this challenge the most. They must stay updated on market trends to prevent losses. Doing so allows managers to move inventory around depending on supply and demand. Fluctuations in demand lead to losses if managers don’t plan properly. On the other hand, businesses can stay afloat by planning, forecasting and understanding the market. Also, rearranging products to accommodate demand changes helps prevent the negative impacts of seasonal demand.
- Labour Costs
Most warehouse processes are automatic. However, labour is unavoidable since machines cannot perform all tasks. Statistics show that 65% of warehouse operating budgets are linked to labour. For instance, moving goods from trucks into the warehouse needs employees. So, warehouse managers cannot avoid hiring staff despite the high labour costs.
Handling inventory needs accuracy and efficiency. With these, operations are more effective in the warehouse. Besides, inaccurate inventories lead to improper stocking and picking issues. On top of that, having inaccurate stock information leads to the following:
- Increased expenses
- Low productivity
- Lost revenue and profits
Luckily, inaccuracy issues are solvable with the help of automated systems. These systems are more accurate and offer real-time information about stock levels. So, get high-quality machines to make processes easier in warehouses.
The Benefits of Warehouse Management Systems
Warehouse management systems make it easier to run a warehouse. In addition, managers are less concerned about passing warehouse inspections since the systems handle most processes. More benefits include:
- Improved traceability
- Reduced operating costs
- Improved employee morale
- Improved demand forecasts
- Enhanced item visibility
The problems in warehouse management are easier to handle with proper systems. Moreover, inaccuracies and demand fluctuations will be avoidable if managers plan accordingly.