October 17, 2017 by Snupit
Managing a warehouse is tough work. You have to consider a number of factors, such as the level of inventory you have to maintain and the role of the warehouse in the supply chain, to keep the warehouse working efficiently. Warehousing and distribution services realize the importance of enhancing efficiency while keeping costs low. Maintaining this balance is tricky. However, a major reason why warehousing and distribution services aren’t able to achieve it is because of some common warehousing mistakes.
Let’s look at 6 warehousing mistakes and how you can avoid them:
1. Surplus Inventory
Managing the level of inventory is one of the most important tasks for warehouse managers. However, keeping surplus or excess inventory is the most prevalent warehousing mistake today. This is particularly true for warehousing and distribution services working with wholesalers. They purchase in bulk and stock the inventory for long periods. Keeping inventory down to a manageable level is the key to a lean supply chain.
Plus, you don’t want too much money tied up in inventory, do you? The solution is to purchase in small quantities rather than bulk orders.
2. Poor Picking Time
You have to allow sufficient space in the warehouse for effective picking paths. If you ignore picking paths when designing the warehouse, the picking rate will be low, and this will add to the time it takes you to complete the supply chain cycle. Not to mention, poor picking time can add to labor costs as well. You have to address this issue at the time you are setting up your warehouse. The closer your workers are to the loading area at the end of the picking path, the lower the picking time will be.
3. Paper-Based Workflows
Small warehousing and distribution services are often guilty of relying on paper-based workflows for running their business. The fact of the matter is that the absence of technology can hamper efficiency and productivity and lead to higher costs. There is also high risk of inefficiency and wastage by relying on paper. Hence, investing in technology is the smart solution.
4. Lack of Safety
Focusing on efficiency is important when running a warehouse. However, this shouldn’t be at the cost of safety. You have to provide optimal health and safety arrangements for your employees to reduce the risk of accidents and injuries. Make sure you log all accidents, identify their causes, and take steps to prevent them.
5. Inadequate Training and Development
Warehousing and distribution services face a challenge when it comes to keeping costs low. Hence, they are less inclined to invest on training and development. There will come a time when your employees’ skill sets will become obsolete. Providing adequate training and development pathways is crucial to optimizing productivity and efficiency.
6. Ignoring Goods-in-Processes
Goods-in-processes are the inventory you will receive, which can get ignored when you are busy handling current orders. You should have specific personnel for receiving goods-in-processes according to the optimal intake procedures.
Avoiding these 6 common warehousing mistakes can help warehousing & distribution services maximize their profits and lower costs without sacrificing efficiency. You can get in touch with professional warehousing specialists to help you implement the necessary measures to reduce picking time.