There is no single way to manage a warehouse. It depends on the nature of the supply chain and the warehouse itself. However, there are certain common principles that exist, and that can and should be applied whenever necessary. Conversely, you must avoid errors in warehouse management that will weigh down the efficiency of your business.
To help you stay up-to-date on how your warehouse should be managed, and ensure that your facilities don’t generate undue costs in your supply chain, take note of the eight most common mistakes. If you can identify the signs that any of the existing problems exist, you can take the necessary steps to correct the direction that things are taking.
If, on the other hand, your warehouse does not suffer from any of these problems, it is always a good idea to take note and be alert.
1. Reduce excess inventory
Even though we all know that reducing inventory is a good practice, setting the minimum stock threshold, storing too much is often one of the most common mistakes made by supply chain companies around the world.
Of all companies, wholesalers are the most likely to fall into this trap, often as a result of buying too many units of a single product to take advantage of volume discounts.
However, reducing inventory levels as much as possible makes your supply chain more agile, and you don’t have money tied up in stock.
When you see “too good to pass up” discounts, try to work out agreements with vendors to deliver them in smaller batches as the merchandise is released like vendors who are handling an online eCommerce store for same day gifts delivery.
2. Do not optimise the selection paths
Another common warehouse management mistake is overlooking the importance of planning effective picking routes. As a consequence, your picking rate will be affected, which will affect your picking rate.
In turn, it can affect supply chain cycle times and lead to excessive labour costs.
Warehouse operators should be able to complete each picking action at a location that is close to the warehouse dispatch area. It is not always easy to plan this type of route within the warehouse, but it is definitely worth considering how to improve them.
3. Clinging to paper, another mistake in warehouse management
We live in the paperless era, so clinging to ineffective workflows is one of those common warehouse management mistakes in many smaller companies.
While it may seem like your business is better off keeping things as simple as possible with just a few paper processes, in reality, the effect is the opposite: it bogs down your operations and leaves you exposed to delays from lost or misplaced documents.
However, this does not mean that you have to invest in an expensive and overly complicated warehouse management system.
There are many simple but effective software applications. By eliminating your paper-based processes, you will save money on consumables and also help the environment.
4. Lack of attention to maintenance tasks
Cluttered loading docks, aisles full of unused pallets, and objects that disturb or even cause accidents. All these circumstances are signs of a warehouse that does not receive the maintenance care it deserves.
Aside from the security implications, a warehouse without proper maintenance is an inefficient warehouse. Clutter obstructs the flow of people and goods through the facility, reducing productivity.
To eliminate clutter and clutter, use strict cleaning routines at the end of each shift. This is the best time to tidy up and clean because it allows the next person to start their activity immediately without delay.
5. Inadequate security management
An orderly warehouse does not have to be a secure warehouse. Good safety management is about looking for hazards that may threaten employees. It is often thought that as long as employees have no accidents, nothing happens.
This is a common and often avoidable mistake because when someone is in an accident, the consequences can be fatal.
Warehouses are inherently dangerous work environments, so getting into the habit of analysing accidents and “near misses”, the causes and implementing the necessary actions to eliminate them, can reduce costs and probably save you several serious accidents for your employees.
6. Neglecting the goods receipt processes
When pressure increases for orders to be shipped on time, inbound operations can be neglected. In reality, the role of receiving goods is critical to efficient warehousing and should, therefore, not be overlooked.
To ensure that your goods receipt processes are efficient, use dedicated staff.
7. Ignore staff development
Tight budgets sometimes mean that training and development activities are not getting the priority they deserve. However, your employees are your most important asset. If we don’t identify development needs and provide opportunities for growth, the most likely result is increased staff turnover.
It costs much less to keep existing employees motivated and engaged than it does to recruit new professionals. Remember to spend some time and resources on employee staff training and development, even if it means hiring temporary staff so your regular employees can be properly trained. It’s one of those warehouse management mistakes that you should always avoid.
8. Not measuring the right things
Most companies today measure warehouse performance to some degree, but this has not always been the case. Despite heightened awareness of the need for meaningful KPIs, many organisations do not adequately measure their warehouse operations.
If you can avoid making this mistake, it will help you avoid some of the above issues.
When it comes to warehouse management, there are many things you can do to improve operations effectively.
You will need to pay close attention to the people, processes, and the warehouse environment itself. If you can avoid or prevent the eight mistakes mentioned, you will have a solid foundation for improving, until you achieve excellence.
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Author Bio; Vikram Rana is Marketing Manager at LiftnGift and has served as the Head of Conversion Marketing at Planet Web Solution. He’s an expert in inbound marketing and lead generation.