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.
