Keeping your supplies and products organized in warehouses requires knowing what not to do. Here are warehousing mistakes and how businesses can avoid them.
Did you know the number of operating websites increased from 10.4% from 2013 to 2017?
With the warehouse industry booming, proper management is necessary to have a warehouse that runs smoothly. If you run a warehouse and are looking for more efficient ways to run it, you came to the right place.
Read on to learn about these common warehousing mistakes and how to fix them.
1. Inventory Accuracy
One of the most common warehouse mistakes is the lack of inventory accuracy. If you don’t get a handle on inventory accuracy from the start, it could be difficult to control in the long run.
Ensuring proper warehouse inventory management will help you facilitate the supply chain of the warehouse.
To solve this type of warehouse mistake, it’s essential to implement a warehouse inventory system. With the help of an inventory system, you will be able to electronically manage your inventory across all warehouse locations.
2. Excess Inventory
Even if you implement an inventory management system, holding excess inventory in your warehouse is another costly mistake.
Holding excess inventory means your money will be stuck in your warehouse for a longer period of time. If you don’t move products fast enough, or soon enough, it can get forgotten, and your profits will suffer.
To fix this issue, you must reduce your inventory levels consistently until you get your stock levels under control. If you have excess inventory, start by ordering small batches.
3. Paper Track
Although it’s great to have records of all the transactions taking place on your website, having physical paper records is not the way to go. Even if you’re organized, holding on to paper records allows for too many things to fall through the cracks.
If you want to eliminate paper trail and get more accurate records, it’s time you let technology give you a hand. Having electronic copies rather than paper trails should make it easier for you to locate and access records.
Imagine typing a few keywords and locating the record you want to see rather than looking through filing cabinets.
4. Efficient Picking Paths
Are your warehouse’s picking paths efficient enough? One of the most important things about running a warehouse is the picking paths.
Inefficient picking paths can cause delays that can hurt the supply chain. Not only do they cause delays, but they also hurt productivity and increase labor costs.
To solve this issue, you must take the time to outline the most effective picking path. Although it will take a lot of planning, all of your pickups should run smoothly once you create an efficient path.
Each pickup route should be close to the dispatch location of the warehouse.
5. Basic Housekeeping
Although internal operations might seem like the most important thing when running a warehouse, you cannot neglect housekeeping.
If you’ve noticed your warehouse is a bit more messy than usual with overfilled pallets, shrink-wrap, and packaging everywhere, your production will likely suffer. For once, employees won’t be as productive as they should.
To fix this issue, start by implementing housekeeping policies to ensure you clear the excess build-up and clutter. For example, all warehouse employees can start by cleaning their workspace after their shift.
Create a checklist to ensure everyone is held accountable. This way, employees working the next shift will have a clean space to start working.
6. Safety Policies
Another warehouse managing mistake is the lack of safety policies in your warehouse. There’s a bigger chance your employees can get hurt in a warehouse setting if they don’t follow the safety rules.
If you’ve had employees getting injured in the last six months, it’s time you take a look at your safety policies. Because your employees are the most important, you must review and implement those policies to prevent them from getting hurt.
Aside from protecting your employees, safety policies also help you save money. Every time an employee gets hurt, you will have to pay workman’s compensation and time off work.
Also, with employees out of work due to an injury, production will slow down.
Even if your employees have never gotten injured, make it a priority to review and revise safety policies as your team and warehouse grow.
7. Think of the Future
Another common warehouse management mistake is the lack of planning for the future. While your warehouse’s current size might serve your purposes now, would it prevent the growth of your business?
You have to keep the future of your warehouse in mind when choosing a location. Where do you see your warehouse in the next five years? How long until you outgrow your current location.
Although you want to have a space that accommodates your current production, you have to keep your website’s future growth in mind.
Growth rates vary from industry to industry, but you should get an idea of how fast your website will grow.
8. Facility Layout
If your warehouse has a poor layout, it can hurt your business. Without the proper shelving, you won’t be able to fit the proper stock levels, and your warehouse will be understocked.
For example, you could add aluminum rectangular tubing to create more shelving.
The best way to make the most out of your layout is to re-do the warehouse layout and design.
9. Employee Training
Employee turnover is an issue that affects many warehouses. Most of the time, employee turnover can be fixed if you take the time to invest in employee development and training.
By giving employees the tools necessary to do their jobs, they will appreciate you investing time in their development.
Also, by giving your employees the proper training, you will reduce mistakes and increase production.
Time to Fix These Warehousing Mistakes
Now that you know about these warehousing mistakes and how to fix them, you’re ready to take your website to the next level.
The most common warehouse mistakes include lack of employee training, inventory accuracy, safety policies, basic housekeeping, and more.
If you enjoyed this article and would like to learn more tips, check out the rest of our blog.
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