Costly Warehousing Mistakes New Businesses Owners Need To Avoid
Running a large warehouse is by no means an easy task. There’s usually so much going on that it makes your head spin.
However, sometimes things can go wrong. And when they do it can cause headaches for everyone, including your customers.
In this post, we take a look at some of the biggest warehousing mistakes newbie business owners make (and how you can avoid them).
Failing To Digitize
In the past, companies relied on paperwork to keep track of what they had in stock. But this method was costly and time-consuming. It always required somebody to manually stock-take and check inventory.
Digitization is now the preferred approach. Today, you can scan items in and out of your warehouse automatically, without writing anything down or filling out spreadsheets.
Holding Too Many Products In Stock
Here’s another common mistake that newbies make: holding too many products in stock – also called excess inventory.
Keeping a lot of products on hand seems like the safe option. But, unfortunately, it increases your storage costs and makes it hard for you to diversify your existing product portfolio.
If you’re struggling to figure out which products you need, use demand forecasting software. This allows you to see what type of demand you’re likely to face for specific lines in the future, allowing you to order only what you need.
Failing To Keep Spares On Hand
Over time, your plant and equipment will depreciate and, eventually, parts will wear out.
For example, forklift trucks don’t last forever. Eventually, they require replacement Nissan K25 engine parts to keep them up and running. The same goes for conveyor belt systems, sortation devices and robotic arms, if you’re using them.
Keeping spares on-site, therefore, allows you to keep your equipment up and running, without having to wait several days for the necessary parts to arrive. Spares also let you reduce equipment redundancy, lowering capital costs.
Not Optimizing Picking Paths
Picking path optimization is a big deal in warehouse management. It makes a tremendous difference to the overall productivity of your organization. Poorly optimized paths can increase your wage bill and, ultimately, make your enterprise less competitive.
If possible, make sure that warehouse operatives can complete picking runs close to your warehouse’s dispatch area. Also, try to combine conveyor systems with picking routes, minimizing walking time for human workers.
Failing To Implement Health And Safety Practices
Love it or loathe it, health and safety is a big part of effective warehouse management. Unfortunately, many firms still aren’t implementing it to the necessary degree. And that’s putting both their bottom line and colleague at risk.
The biggest health and safety hazard in warehouses is falling stock. Improperly placed boxes and pallets are a serious danger.
Forklift trucks are also a danger. There are many cases of workers getting crushed by these vehicles.
Failing To Develop Staff
Warehouse staff require training and development to keep their productivity levels high. Failing to provide this could put your firm at a disadvantage through high staff turnover and lack of engagement.