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Read More About How To Organize Warehouses
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There are many kinds of issues regarding warehousing that businesses have to deal with, on a daily basis. These kinds of issues can result in mismanagement of inventory storage, write-offs due to losses, losing clients due to delayed order fulfillment etc.
You can read more about how to organize warehouses in the later part of this article, but before that we shall discuss the common problems associated with warehousing:
1. Inaccurate Quantities:
Many a times, there are errors in the total count of items stored in a warehouse. This can happen mainly due to inaccurate placement of a particular item/s, in an unassigned area. Because of this, the item is not accounted for and due to it not being ordered for, it gets neglected and forgotten. Examples of such, would be for those kinds of goods and materials that are usually not ordered on a daily, or monthly basis, rather they are rarely ordered by customers.
Capacity issues arise due to insufficient storage space and improper categorization and placement of goods in the warehouse. Due to improper arrangement of goods, they are misplaced and it becomes difficult to search and place them for transportation purposes. Also, due to inefficient arrangement of goods, many of them get damaged, lost, or mistook for other items. Thus, due to this capacity is not effectively utilized.
Many a times, the employees who work in such warehouses are unaware of how to handle storage items and goods. Such goods and items are always placed from one spot to another, thus changing hands several times in a day. Due to this, there is higher chance of increasing damage to the inventory. This means the company has to write-off such items, or that they sell off such items at heavily discounted price.
4. Product identification and categorization:
Many a times, the product packaging and labeling is incorrect. Due to negligent verification, such goods are categorized wrongly and placed at wrong sections of a warehouse. The problems associated with such issues can include wrong order placement and customer dissatisfaction, due to non-fulfillment of orders.
5. Slow picking process and stock discrepancies:
This usually happens, when inventory location is not organized properly. When a business does not store items that are frequently ordered, in an easily accessible location, more time is taken to lift and prepare the item for transportation. A minute of delay in shipment can mean a huge difference in the form of an entire day lost in transportation. Such is the value of time in inventory management.
These are the above issues that plague many warehouse managers and Business owners. You can find out more details on how to optimize inventory capacity and loss reduction below.
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