Warehouse management is a crucial task. Through it, processes such as organizing, managing, and maintenance are executed efficiently. This is the reason why according to a report, the overall warehousing costs each year are estimated to be $385 billion. While the amount is already high, warehouse management could be costlier, especially when errors that affect speed, efficiency, and productivity arise.
Warehouse management challenges must be dealt with accordingly as they can greatly impact overall processes. Fortunately, these issues can be avoided with the right logistics company.
6 Warehouse Management Challenges that You Need to Overcome
1. Redundancy
Large warehouses pose management challenges. One of them is performing multiple operations on a particular item which leads to redundancy. For instance, a one-person job like the pickup of an item for the same order is done by many persons. It creates inefficiency, increases labor costs, and takes up more time.
2. Inefficient Warehouse Layout
It is important to make the most of warehouse spaces. This will allow for proper organization, enough storage space, and facilitate better movement among warehouse employees.
3. Poor Inventory Management
There are many problems associated with poor inventory which can affect overall processes. Some of the problems related to inventory management include:
- Difficulty to locate a product
- Failure to identify products that are in stock and those that are out of stock
- Failure to update/organize stocks
4. Insufficient Preparation for Seasonal Demands
Peak seasons create busy times. You must be prepared to take on orders and meet requirements even with sudden influxes. It would be a mistake to end up not being able to fulfill orders because you failed to manage your stock and prepare for unexpected demands on short notice.
5. Improper Order Management
One of the most important functions of a warehouse is proper order management which covers receipt of orders from the customer, order picking, packing, shipping, and post-sale processes. When poorly done, this could result in wrong orders, delayed processes, and client dissatisfaction.
6. Huge Labor Expenses
Warehouse management includes several operations and for each, you’d need a staff to take on the job. According to research, the majority, or 50% to 70% of the warehousing budget is spent on labor.
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Warehouse management comes with challenges. As a business owner, you need to make sure that you will be able to operate smoothly, use your employees efficiently, and save time, money, and resources. While there are already different types of technology that you can invest in to automate processes and avoid crucial errors, the right logistics company offers a better option.
With a logistics management company that also offers warehouse management services, you don’t have to invest in technology to streamline your processes. Everything you need to support productive and efficient operations will be available. You can ensure that errors will be avoided and customers are assisted from the time they reached out up to the post-sale phase.
If you are in search of warehouse management services, work with Worklink Services, Inc. The company has been providing efficient, effective, and reliable logistics management services to various domestic industries since 1999. Send us a message so we can discuss your requirements.