Warehouse operation is the thing that should be your main concern as a business owner. Sadly, there are companies that still unaware of how stock controlling can help their company. Thus resulting in various problems such as sub-par customer service quality and reduce the company profits.
If you currently having those problems, there may be a problem in how you carry your stock controlling. In this discussion, we will talk about the five most common problems that usually happen in your warehouse.
Keeping an accurate count of inventory items is the most challenging problem. In general, this problem in stock controlling happens due to human error. It’s not because your warehouse staff is not trained enough.
What usually happens is when there is a mismatch between the data and the actual amount of inventory in the warehouse, they generally ignore it in favor of facilitating delivery to the customer.
If this continues, in a few months you will see a significant data gap. This is dangerous and very detrimental to the company. There are several ways you can do to improve the stock controlling accuracy:
- Run intensive training for your warehouse staff. Regardless of the activities in the warehouse, data accuracy can still be maintained.
- Give training to every staff in your company about your warehouse management system. Thus, each worker can exchange information when a problem arises.
- Use inventory management software that is easy to use. Generally, this software can be adjusted to the needs of your company so it’ll be easier for everyone to manage inventory data.
- Increase the frequency of stock-taking. Generally, data errors are not caused by the item being lost but misplaced.
Inefficient warehouse layout
Every industry has its own way of managing their warehouse layout. The warehouse layout that suitable for a retail business doesn’t necessarily suitable for manufacturing or rental business. The downside is this will slow down the inventory flows in the warehouse. In the end, you will end up hurting your customer.
But there is one thing that you can do to improve your warehouse layout. The most popular item should be easily accessible to facilitate picking and shipment. Place the popular item in front of the facility so the picking team doesn’t have to go all the way to the end of the warehouse to pick it up.
Poor item location
The way you place and arrange goods in the warehouse also must be made as efficiently as possible. Leaving items in the wrong place does not only make the warehouse looks messy but also affecting your customer service quality. It’s because you have to spend more time searching in the warehouse.
This problem will get worse as time goes on. As new items added to the inventory and the available space is running low, problems will accumulate. A common way to deal with this problem is to reorganize your warehouse layout.
Like we previously stated, make sure popular items are easy to access. This is the most appropriate way to overcome the item location problem.
The demand fluctuations
There are many factors that can make this problem to occur. Not too long ago, the whole world suffers from global financial problems. As a result, a lot of retail companies unable to sell their items and ends up losing money.
Yes, this problem is hard to predict, but that doesn’t mean it can’t be avoided. The best way to anticipate this is by making a re-order point calculation. With re-order point, losses can be minimized and your company can survive longer.
In some company, quality control staff are getting involved in the picking, packing, and sending items to the customer. More often than not, this multi-tasking ends up making the staff unable to identify what’s wrong in the warehouse and the packing quality also degrades.
To overcome this, separate the staff whose job is to control quality with staff who carry out other work in the warehouse. Thus the item quality in the warehouse, the packaging quality, and the shipping quality can be maintained.