Warehouse management organizes, maintains, and handles every process inside a facility to ensure it runs without a glitch. However, certain problems unexpectedly happen that may lead to costly errors and affect the productivity and efficiency of the entire warehouse operation.
Fortunately, your business can reduce, if not eliminate, the consequences of common logistics management issues in the facility. Identifying the challenges and implementing proper warehousing solutions can improve business operations. To guide you, here are 5 common logistics issues and the recommended measures to solve them.
5 Common Warehouse Management Issues and Their Solutions
1. Unsystematic Warehouse Layout
One of the most common logistics problems is the lack of storage space in the warehouse. It is not because the facility is small but due to the ineffective use of the area.
Finding an optimal layout can solve this problem. The warehousing solutions include:
- Maximizing the use of the floor and vertical spaces while having sufficient room for the employees to move around the warehouse.
- Utilizing automation equipment and technology to minimize labor costs, enhance accessibility to the items, and categorize and store the inventory safely. Technology like warehouse management systems offers 3D models that give the most suitable layout given the dimensions of your warehouse.
- Rearranging your goods manually by storing the most salable items in places that can be reached easily.
2. Unorganized Inventory Management
You are having inventory management problems if the records are not accurate.
- Products are located in the wrong place.
- The warehouse does not have enough stock to fulfill the orders.
- The facility turns out to have enough stock after declining an order.
- It is difficult to find a space where to store the newly-arrived stock.
Among the possible warehousing solutions to this is to use either a system that is exclusive for inventory management or a complete warehouse management software that contains real-time inventory management features. A typical system gathers all inventory data using a handheld or fixed machine like a barcode scanner. The information is sent to a software solution, which catalogs and traces your inventory. This is a good option if you are thinking of warehousing management solutions for your inventory concern.
3. Accidental Redundancy
Most warehouses carry out several operations on each item. These tasks are interrelated to create workflows. Problems arise due to disorganized workflow which results in two or more people doing the same task. Redundancy wastes time and increases labor costs. This logistics issue occurs more often in large warehouses because the space is bigger and there is more inventory to do.
One of the warehousing solutions is to invest in technology like the modern Warehouse Execution System (WES) that can automate processes that are susceptible to redundancy. Barcode technology can be used in order picking to scan and notify the user if there are duplicates.
4. Lack of Preparation For Seasonal Demands
Some products are salable the entire year while others are in demand during specific times. Your warehouse may not be ready to receive orders due to the sudden demand for the products. The reasons could be either you do not have enough stock or you do not know where to place the items on such short notice.
Here are some warehousing solutions to address the issue:
- Stay in touch with your manufacturers, retailers, distributors, and transporters who can give first-hand information about the present demands in the industry.
- Utilize demand forecasting techniques to know what products will be the most salable next season.
- Organize your goods and place seasonal products in the most accessible areas of your warehouse.
- Consider using automation tools and warehouse equipment for faster workflow.
5. Insufficient Order Management
Order management is one of the most important warehouse operations but also reports the most errors. It is responsible for monitoring all operations and processes from the minute an order is received. Any mistake in the process can cause a delay in delivery because the steps must be repeated from the start.
An order management system is one of the best warehousing solutions to keep your orders operating smoothly. This handles your whole order management and fulfillment processes like customer notifications and shipping of goods. Order fulfillment accuracy can increase your company’s profit and customer satisfaction.
Warehouse management ensures everything operates smoothly within a facility. However, logistics issues may arise that can result in costly errors and reduced productivity. Fortunately, there are warehousing solutions that can help address the problems. You can reduce or avoid the issues by knowing and implementing these solutions in your facility.
Worklink Services, Inc. (WSI) is a privately owned Filipino corporation that provides efficient, effective, and reliable courier, forwarding, trucking, and logistics services to various domestic industries. WSI offers warehousing solutions in the Philippines for your Just-In-Time programs and inventory control, especially during peak demands. We have an extensive network of dedicated and shared warehousing and distribution operations that can serve as branches of your business.
Do you need a warehouse management service for your business? WSI can help.