Warehouses

Warehouses find themselves in increasingly dynamic environments as

remote events in the 2021 global supply chain make their impact felt on
local businesses. The best approach for longevity and sustainability for
your warehouse when dealing with these challenges is by ensuring you
have flexible and scalable processes in place that abide by industry best
practices.

Warehouse managers should monitor and track changes in the business

environment and adopt responsive solutions, but this is all much easier with
 the right information in your hands
 a handy solution.

Common warehouse problems in 2021 see erratic demand, varied labour

requirements and costs, and inaccurate inventory information, all requiring
robust systemic solutions to keep managers on top of changes and aware
gaps that require attention. Warehouse managers need to be able to juggle
maximizing performance while balancing trade-offs under uncertain
conditions.

Problems In Warehousing & Solution:

1) Inventory Inaccuracy
Accuracy and efficiency in handling inventory in warehousing go together,
but more so in a world that sees customers wildly buying all the toilet paper
in Australia overnight to South Africa shutting down the alcohol industry.
Inaccurate inventory causes problems such as maintaining improper stock
levels and buildups of obsolete inventory. These in turn lead to picking
problems when pickers rely on inaccurate information, leading to inefficient
processes. Other impacts of inaccurate inventory include lowered
productivity, increased expenses, and corresponding lost revenue.
Solution: Automated systems offer real-time, accurate information about
stock levels and composition. The technology employed in managing
inventory in a warehouse is critical to success because the value of the
automated system is just as good as the quality of the system itself.
2) Redundant Processes
Traditionally, warehouse employees have been likely to handle a product
several times due to the nature of the warehousing process… and then
Covid hit. Once a notable redundant process in warehouses is where
warehouse workers pass the same ticket through multiple hands, this has
suddenly become a health risk and needs rapid reassessment.
Solution: While necessary in some instances, such redundant procedures
are time-consuming and not only increase the cost of labour, but create a
health and safety risk. Using barcode technology streamlines the
warehousing process, removing redundant processes while maximising
resource utilisation. Automated systems are evolving fast, and global
trends are compelling warehouse managers to maintain up-to-date systems
to rapidly adapt to ensure they thrive, not merely survive.

3) Poor Warehouse Layout

Efficient use of space is a critical success factor in warehousing in 2021
where we are trying to do more with less. Inadequate storage space as well
as inefficient use of available spaces are common problems in warehouses
with poor facility layout. Undesirable warehouse design is a major concern
for managers as there is a direct correlation to a potential negative impact
on profits.
Solution: Optimal warehouse layout considers both the floor space and the
vertical space available for use. In addition to maximising the use of space,
a good layout maximises the use of equipment and labour, accessibility to
all items, the security of all items, and safety of staff. Employing forklifts
allows for a configuration that maximises both the total horizontal and
vertical space.
Complementary solutions include ensuring that your highest-selling
inventory is easily accessible, and streamlining dock-to-stock processes.
4) Erratic Demands
Fluctuations in demand are posing serious challenges for warehouse
managers. The dip in sales due to the recent global financial crisis resulted
in major cost problems for warehouses due to increased inventory levels on
some levels, while on others PPE suppliers suddenly found themselves
scrambling to fulfil.While this has not affected all industries equally, the
problem highlights the challenge of managing fluctuations in demand due
to external forces beyond the warehouse’s control.
Solution: Managing seasonality in demand requires timely and accurate
information about manufacturing, retailing and the industry. Information
gaps between the warehouse and other relevant entities or the industry
limit the ability of the distributor to monitor and respond to changes in
demand effectively.
Managing a pandemic requires intuition and a rapidly adjustable system! It
is necessary for warehouses to use timely and accurate information in
planning and forecasting demand as well as in providing supply chain
visibility.
Rearranging the products to match changes in demand helps minimise the
negative impacts of seasonal demand. Such a rearrangement involves
correct positioning of the items by placing the products with high demand
during the current season at the front of the picking aisle and at the correct
height.
Accommodating erratic demand, however, goes beyond just layout and
picking. The problem also requires proper management of transportation
networks and strategic sourcing of transportation services. These long-term
solutions build a lasting capability with strategic value for the distributor.

5) Labour Costs
Excellent warehouse managers strive to increase productivity while
minimising labour costs in a labour-intensive environment; these costs can
constitute about 65% of the operating budgets of most warehouses.
Typically warehouses use expensive equipment and employ large labour
forces, presenting a challenge that is for the most part unique to
warehousing operations. The staff ranges from cleaners and packers to
managers and administrative personnel.

Suddenly warehouses needed to adjust shifts, ensure social distancing,

AND account for fluctuations in logistics while managing a vulnerable
workforce.

Solution: Attempts to reduce the cost of labour should take into

consideration the impacts of the move on other costs. The two major
strategies for addressing labour-related problems include maximising
available labour and replacing labour with automated systems.
Developing the right mix of expertise through workforce planning helps
managers hone the skills necessary for successful labour force practices.

A combination of the right skills and motivation, through practices such as

excellent working conditions, training and flexible hours, enhances
employee productivity and the performance of the warehouse.

6. Picking Optimisation
Is your picking strategy holding you back? If you’re struggling to improve
operational efficiency, a small change like tweaking your picking process
could go a long way towards boosting both your productivity and your
bottom line.

Picking is where the majority of warehouse management problems occur,

but this issue is often a result of mistakes during receiving or put-away
tasks. Poor picking can easily disrupt an inventory control system when the
tasks and decisions engaged in on a daily basis are done in a hurry in
order to assist the urgent customer in a tense environment.

Solution: Radio frequency and voice-directed systems are becoming

widespread, but some small operations continue to rely on a paper-based
system. Regardless of which type is used, the important part is to ensure
full compliance with the system, even when circumstances arise that make
compliance seem counter-intuitive. Dedicated attention to master data will
help to keep the system accurate and reliable.

When exceptions occur in the system, such as offering an approved

substitute item or finding a wrong item in a slot, these exceptions must be
recorded to allow a full and accurate record of the inventory. A variety of
different types of errors can occur in picking, such as noting an abundant
amount of an item, but being unable to use it because it is already spoken
for on back orders.

7. Quality Control
In many cases, workers in charge of quality control also do the picking,
packing and shipping of inventory items, so many errors never get found
until they arrive at the customer. This is especially prevalent in a pandemic
environment where warehouses are trying to ship more with less staff
available.

Solution: Ideally you need a separate level of quality control to ensure

better inventory management and supply chain issues. This separate
level of authority can often provide the motivation to manage
everyday inventory issues in a structured manner that encourages
accountability.

A quality control function can record vendor accuracy, improve stock

rotation and reduce the need for manual processing of warehouse items.
Quality control systems ensure that the rest of the warehouse management
program is functioning as intended.

Warehouse management is commonly associated with four core elements.

However, the underlying processes are complex and dynamic, not to
mention the global politics at play. Combined, this unique environment has
presented major problems for warehouse managers across industries and
continents.

Distributors have had to deal with trade-offs due to resource and logistical
limitations, leading to poor performance in key functional areas and a fight
for both relevance and survival.

To ensure the flexibility required to navigate any storm you need to

consider a holistic system - the more updated your WMS technology, and
the more transparent and accessible your data is, the more you can reduce
these risks and have a consistent dependable warehouse that staff and
customers can find maximum efficiency and trust in