Logistical Challenges in Warehouse Management

Logistics involve planning and coordination of people, facilities and supplies. In a warehouse, logistics can even include the movement of information and knowledge along with the rest. No doubt, logistical capabilities are becoming important for the survival of any business today.

In this blog post, we will take a look and tackle some common challenges emerging in a warehouse from a logistical point of view.

Proper tracking of items

Warehouses store a large number of items for a business at any given time. But if you don’t know what aisle or bin your items are stored in, then what’s the point? You might keep track using the more traditional ‘pen and paper’ style, but that will only go so far. It’s time that you streamline your operations. Barcode scanning and RFID technology offer easy solution to track your goods. Additionally, there’s a lot more you can do with a scan:

  • Receive and put-away goods as they come in
  • Perform cycle counts to verify the quantities in real-time
  • Automatically process orders and update your inventory levels

Warehouse space layout

The biggest challenge in a warehouse is to utilize the space in the most efficient way. The goal is to fulfill 85% of the floor space, leaving 15% for contingencies or new arrivals. Further, the primary areas of focus to optimize the warehouse layout are storage and inbound/outbound operations. If you don’t manage the floor properly, it can cost you both money and customers if their orders are not fulfilled in time. To optimize your space:

  • Track the goods that sell the most vs least
  • Place quick moving goods closer to the loading station

Benefit? Your employees will save time by not having to look for the goods every time an order is placed.

Inventory Management

Thirdly, a logistical challenge stemming from the warehouse is effective management of inventory. Worse than overstocking a product is stock-out of a given item. Your inventory management depends on the ability to forecast demand and then stock accordingly. Analyze your inventory numbers to learn what SKUs were picked the least. Try to reduce their stock quantity or otherwise  they will add to your expenditure as they occupy space and don’t move quick. Moreover, visibility of your inventory can offer you insights into when to replenish your stock and even set the minimum and maximum re-order points.

In conclusion, warehouse management is vital to any business. It’s a challenge but there are strategies in place to overcome them. If your business is able to improve the logistics of your warehouse, your business can avoid unnecessary costs and add to the bottom line.

Learn more about Clear Spider’s Warehouse management solutions. Click here.

 

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