Managing a warehouse isn't a simple chore. You have to keep an eye on every workflow in the facility to always keep it up & running. A warehouse is only effective when it can manage all the tasks smoothly and efficiently.
Warehouse management is one of the most crucial parts of any supply chain. It involves organizing, maintaining & managing all the processes. Running a productive warehouse is based on six basic tenets i.e., accuracy, cost, control, efficiency, cleanliness, and safety. Every warehouse manager tries to carry out these tenets but it results in a huge amount of expenditure. Did you know according to a report by McKinsey & Company in 2019, about £300 billion (approximately $385 billion) is spent each year worldwide on overall warehousing costs? And that amount doesn’t include the additional costs of rectifying errors and mistakes.
Workflow operations are the lifeline of any facility. If it doesn't operate smoothly then it can affect the speed, efficiency& productivity of your business. At this current day, the supply chain industry especially those following the traditional supply chain method is suffering from a lot of damage that can only be identified after the process. And by then, it'll be too late to reduce the amount of damage.
Some of the major loopholes in the warehousing industry that requires attention are duplication of work processes where multiple times of operation is performed on each section. Every operation or activity in the facility requires some significant amount of cost to function which is known as activity-based costing. However, due to duplication in the processes, this activity-based costing doubles by two times and lead to mispending of money indirectly. Also, this redundancy makes operations time-consuming and leads to an increase in the cost of labor. This is more likely to happen in large warehouses than in smaller ones. However, from picking up an order from storage locations to fulfill the order. Every single step involves the risk of pilferage and can lead to a huge amount of money loss.
The next major concern is poor facility layout in which the warehouse managers face a lack of storage in the inventory because of ineffective usage of the area. A survey conducted by Logistics Management back in 2018 suggests that the average warehouse capacity utilized by manufacturers was only around 68%. Due to this poor facility layout, most of the warehouse managers face a major cause of worry. To make efficient use of space, a good layout makes the effective use of space and equipment which makes it more accessible and convenient.
The third major challenge the warehouse industry facing right now is High-labour cost. At this time when everything is manageable through ever-evolving technology most of the managers are still paying about 65% of the operating budgets to the labor. A traditional warehousing system uses expensive equipment and employs a large number of laborers instead of automating them which is one of the major failures of inventory management and also one of the reasons for lower productivity.
Now, last but not least is inaccurate inventory. Any mismanagement from picking up to accepting an order or trouble in finding, it is one of the major reasons your warehouse is not performing well. These problems indicate the bad management of your warehouse. Another survey by Peoplevox found that 34% of businesses have delayed shipping because the products mentioned in the order were not actually in stock. These little miscalculations lead to inaccurate records of inventory and running inconsistently.
However, to overcome these big challenges and to elevate your warehouse, Isourse has developed not only innovative but a highly functional solution that can help your business to achieve all inventory ideals in a very effective way. In addition to saving time, meet high order fulfillment, and increase in profitability, we built an application called 'Isopronto' a supply chain solution. This cutting-edge software promotes the tech process & reduces the chances of mismanagement and offers a completely customizable solution by automating them and assist in revolutionizing your business process in real-time. Also, It facilitates the management of the inventory, stock tracking and provides bin mapping to fix the accountability & pilferage.
These common warehouse problems require a robust system that Isopronto has. Moreover, It also keeps the managers updated about all the loopholes that require attention in the workflows. This one right solution has all the qualities to revamp your whole business process and take it to new heights.