07 Apr 2023

Top 7 Challenges in Warehouse Management

As an integral unit of the supply chain, warehouse functioning can sometimes find itself in a bottleneck of challenges hindering overall efficiency & ultimately organization’s revenue targets.

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An active cog in the functioning of a supply chain, a warehouse manages an uninterrupted flow of functions, from the collection of raw materials to production to the delivery of the final product. Without a fully operational store system, a company might face an uphill task with pipeline delays in staying true to the manufacturing timeline and ensuring adherence to TAT for every process involved in the supply chain. So, while a fully functioning depot facility directly influences an end-to-end logistics workflow, warehouse management challenges can hinder a company's optimized workflow. This write-up highlights the crucial bottlenecks that can hamper an inventory daily procedure.

Table of Contents

  1. Inaccurate Inventory Data
  2. Space Constraints
  3. Stock Management
  4. Unaccountable Labor Management
  5. Lack of Transparency & Connectivity
  6. Improper Time Management
  7. Managing Damaged Products

What Are the Challenges in Warehouse Management?

  1. Inaccurate Inventory Data Untimely updates on inventory data can lead to poor workflow in a warehouse. For personnel working at the logistics center, the key operational requirement at the beginning of the picking process is to know the correct storing location of the product. Considering this step requires a lot of physical attention, with the workforce requiring time to track & trace the goods – the slightest error can cost a company crucial working hours translating into the loss of valuable capital. This occurrence generally happens due to inaccurate manual record keeping & lack of transparency amongst stakeholders.
  2. Space Constraints One of the most practical issues for any storeroom is space constraints or lack of space utilization, which can lead to scalability issues for an enterprise if & when customer demands arise. A poorly structured warehouse can result in unwarranted work accidents, a longer time for product location, and in some cases, damage to the stored inventory. Such bottlenecks can be solved with proper planning giving key focus to space optimization, eventually translating into efficient operations.
  3. Stock Management A warehouse principle focus is to house stock, though if not done correctly, it might result in lost revenue opportunity for the company. An organization cannot afford a shortage or excess supply in its storage, and both extremes point toward improper utilization of funds and lead to a bad balance sheet at the end of each quarter. Many companies now actively employ analytical processes to gauge seasonal customer demands for the foreseeable time, enabling them to be ready with proper stock at opportune sales prospect.
  4. Unaccountable Labor Management The fulcrum of daily operation at a warehouse, labor accountability lays out the blueprint for a company meeting its weekly, monthly, or quarterly targets. How well your labor is versed in business-as-usual activities defines the overall productivity metric of your enterprise. If left unchecked, improper utilization of workforce expenses can leave a big hole in the organization’s financial chart. An organization must have a proper reporting structure with in-line managers keeping a tab on the proceedings undertaken at a storage house. With the transparency of approach & workforce in place, a company will have a better rate of the order fulfillment process.
  5. Lack of Transparency & Connectivity Every process in the supply chain needs to be transparent with its stakeholders aligned, and warehouse operation is no stranger to this modus operandi as well. A storehouse needs the latest technological development to fast forward its daily targets quickly. Lack of such upgradation in infrastructure can result in poor work output and debilitated data cohesion, factors which prove to be a bane for an end-to-end supply chain. Having automation at the helm also minimizes manual effort while collaborating with other partners. With astute transparency & better networking, management can observe noteworthy improvements in key performance metrics.
  6. Improper Time Management Time is the most significant marker to judge the efficacy of any operable framework, and improper time management makes up one of the most major warehouse issues. For instance, an unoptimized inventory-picking process directly impacts the entire order life cycle, subsequently cascading the delivery schedule. Duration assigned to every stage in the supply chain must be followed to ensure near-perfect efficiency, output & complete optimization of resources and capital.
  7. Managing Damaged Products Reverse order flow for any organization is a cost-generating statement as it requires additional setup to carry forward transaction status (canceled or reordered). Considering such a framework is in place, any disturbance in reverse logistics, be it lack of additional labor or shipment wagon, directly impacts storehouse functioning, which is duly counted under the challenges of warehouse management.

In addition to the above-mentioned catch, a company sometimes faces head-on scenarios directly disrupting the regular business operation. Warehouse issues like poor quality control, inapt order management process, siloed data storage, unwanted excess procedures, and unsafe work environment can all result in unrewarding scenarios for a supply chain. Organizations employ Warehouse Management System (WMS) to nullify any potential aberrations in their supply chain's logistics leg to maintain fluency in daily storehouse functioning while focusing on revenue-generating metrics. If you want to keep your productivity high while keeping a tab on the investment, 3SC's WMS solutions will be the perfect aid for your organization. To know more, contact us now.

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