Eight Challenges Faced By Warehouses Not Using a Warehouse Management System
It is no brainer to be operating a warehouse in modern day without having a proper solution to manage the processes of warehouses. The use of pen and paper and worksheets are also outdated and will not handle the demand in modern day consumer driven culture. We can see in current times – more and more people are turning to online shopping which in turn drives businesses to operate from larger warehouses to meet the demands of customers.
Almost every warehouse without a basic WMS (Warehouse Management System) is facing at least half of the below challenges on daily basis, which will have a direct affect on supply chain processes, business operations, higher costs, loss of goods and ultimately insignificant return on investment.
- Out-of-control stock management
- Overtime work between office and warehouse
- Inefficiencies in all inventory management tasks
- Flustered staff
- Consistently running out of stock
- Inability to monitor or manage warehouse processes
- Inability to forecast stock
- Reliance on staff memory and knowledge
Challenges associated with non existent inventory tracking
Below you can see the issues with poor inventory tracking and how a warehouse management system can easily overcome these issues. Not having inventory traceability can have serious implications on organizations and warehouses.
No more running around looking for stock. Staff can acuire the whereabouts of any inventory item and stock on hand by simply running a stock by location report.
If a random inventory is found anywhere in the warehouse, a simple barcode scan can reveal its status and history. Stock adjustments can also be done on the go.
A warehouse management system can track the movement and location of stock, forecast stock, alert when stock items have reached their minimum levels etc.
A modern warehouse management solution will allow you to set minimum, maximum and reorder quantities for your stock items. This allows businesses to ensure nothing becomes out of stock and with some systems, purchase orders can be sent automatically and directly to suppliers for items that have reached their min stock levels. This ensures seamless stock management and automation with minimal user interactions.
Not having an efficient ordering process can have serious implications and unnecessary costs on the business. Picking orders accurately will ensure you meet customer demands and expectations, reduce time and costs in labour trying to find who bought what.
Overstocking of inventory items
This goes hand in hand with forecasting your stock. Setting up every stock item to have its own reorder quantity helps ensure you always stock based on the supply and demand of each inventory item. Allows businesses to utilize every inch and space in the warehouse wisely and effectively.
A warehouse with a $5 million dollars worth of stock can have a $500K worth of overstock if forecasting is not implemented accordingly.