Common Warehousing and Distribution Issues

1. Common Warehousing and Distribution Issues and How Outsourcing Can Overcome Them

2. Introduction If you run a warehouse business, you must agree that it’s a crucial determiner of your profit-making prospects. Therefore, you have to take all the necessary measures to ensure that the distribution process is smooth. Of course, this means that your inventory has to be correctly arranged and that there are no delays during the distribution. As an integral part of your business, your warehouse highly influences your chances of growing. When the distribution process is smoother and the customers are able to get their orders fast, you are likely to attract more customers and make more money. This is because customers are likely to seek your services more often when they are assured of fast and secure shipment.

3. From the shipment to the organization, everything should be sorted to facilitate efficiency as well as productivity. This brings us to a concept called warehouse management. Essentially, warehouse management involves organizing and controlling every aspect in your warehouse—and ensuring that everything runs in the most optimal way possible. This implies that you need to invest in accuracy, operation efficiency, warehouse safety, sanitation, and cost management. In most cases, the issues that affect the running of a warehouse are related to these factors. Luckily, the issues are manageable and one of the best solutions is outsourcing. Without further ado, here are 12 common warehousing and distribution issues and how outsourcing can help you overcoming them:

4. Table of Contents • Inventory Inaccuracies. • Slow Picking. • Damaged Inventory. • Redundancy. • Slotting Discrepancies. • Incomplete Orders. • Labour Intensive.

5. Inaccessible Vertical Areas. • Sanitation Challenges. • Space Inefficiency. • Unsafe Practices. • Seasonality. • Final Thoughts.

6. Inventory Inaccuracies Gone are the days when all you needed to keep records of your inventory was a piece of paper and a pen. The shipping process has become so complicated these days that it’s necessary to switch from manual inventory management to digital solutions. However, without the right inventory management system, it’s hard to monitor what is shipped, where the specific orders for the customers are, and what items are out of stock. So, there are bound to be inaccuracies in your inventory. So often, inventory inaccuracy occurs due to the lack of an ideal automated system. Outsourcing expert allows you to access the right inventory management system that automates your operations. The system helps you to monitor all the stages of your warehousing business. Some of the key areas that the management system focuses on are: • Order management • Product tracking • Digital product identification • Shipping management

7. Slow Picking Every extra minute that is spent on organizing the inventory has a huge impact on your general operations. When the inventory is not well organized, there is bound to be discrepancies in the product picking process. Your manual pickers find it hard to locate most of the items and this is not good if you are looking to enjoy a faster shipping business. There are two promises that come with outsourcing and they are key to overcoming low picking. First, the professionals that you hire will suggest a sequence order picking process. This ensures that your employees always work with a packing list. With a better plan in place, they’ll be able to find items quickly and this saves time. Secondly, the experts will help you implement advanced monitoring systems such as bar code scanners and palate inverters that are crucial in facilitating a quick and efficient stocktaking process. The products will be accurately identified to facilitate a smoother shipping process.

8. Damaged Inventory When moving fragile inventory, there is the risk of them hitting hard surfaces in your warehouse and outside it. Likewise, shuffling and restacking boxes may also risk damaging the packed items. Not only is this an inconvenience to the customers but it’s also a worrying thing for your business since it’s tantamount to financial losses. Considering that damaged inventory is an issue associated with storage and packing difficulties, the company that you outsource will provide you with practical storage solutions for overcoming this risk. By helping you organize your warehouse, you’ll be able to protect your most valuable inventory from getting ruined. They’ll ensure that you have ample space in the warehouse. Therefore, you don’t have to force anything when packing or storing.

9. Redundancy A majority of warehousing problems are not that efficient because of redundancy. For example, it’s a common trend to see workers passing tickets among themselves before it can reach the intended target. Such handoffs are not really necessary since they call for manual tracking and this may slow the general operations in your warehouse. You need modern barcoding solutions and other automated wireless technologies that will eliminate the need for handoffs. This will ensure that very few workers get the opportunity to touch your products. When the handoffs are significantly minimized, you’ll be able to save on labour and time. Barcoding solutions can be outsourced, so you don’t have to do it alone.

10. Slotting Discrepancies When you employ forklifts in your warehouse without understanding how to properly place the items, they (the items) are likely to be slotted in the wrong places. This often results in inventory disorganization. Such discrepancies may consume your warehouse space unnecessarily. This makes it difficult to find enough space to store other items that are shipped later to your warehouse. For starters, outsourcing allows you to enjoy pre-planned advantages which guarantee you proper inventory organization. They look at the storage characteristics of your item and the supply needs. Additionally, outsourcing allows you to reconsider your racking system and to change if necessary. This depends on the layout and arrangement of your warehouse space. This will ensure that the correct items are slotted into the empty racks with space-saving goals in mind.

11. Incomplete Orders There are different ways to describe this common distribution problem. In one way, it may be a case of your stock running out without you realizing it. In such a case, you only notice it when it’s too late and since you don’t have any other option, you contemplate sending the wrong order or a low volume. In another way, it may be a case of sending damage products unknowingly. The good thing is that such problems are avoidable with outsourcing. Outsourcing helps you to put all your items in their proper places. By observing the best product handling practices, the experts will help you to minimize the risksof damages. Additionally, the experts will help you monitor your inventory using advanced technology. This reduces the likelihood of a customer getting an incomplete order. The professionals will also use technology to help you know when a given stock is nearly running out.

12. Labour Intensive With modern automation being key in the warehousing sector, there is no need for you to hire so many workers to handle the manual jobs. In automation, the need for manual labor is significantly reduced by robots and automated lifters and loaders. Unfortunately, not all warehouses are fully automated, and this means that they have to rely on human power to lift and load items. Such processes are bound to call for extra financial costs since workers need to be compensated. By outsourcing modern automation solutions, you’ll be able to tremendously reduce the need for manual lifters and loaders. This not only ensures a faster process but also guarantees labour saving benefits. Your products will be organized depending on your existing warehouse space. Of course, the lifting and loading speed will be much enhanced.

13. Inaccessible Vertical Areas When your staff wants to access high areas and you don’t have advanced lifters, they will be forced to overextend or bend. Other than slowing down your distribution process, there is the risk of them suffering injuries. You need to outsource the right professionals who understand safe loading and offloading. They’ll help you find the right equipment for accessing the raised areas. The solutions that they provide will minimize the probability of your workers stretching or bending trying to reach the high areas. A perfect example is lifting tables. The tables are adjusted depending on the weight of the workers or the items being packed or unpacked. The most popular options in this case are:

14. High-level scissors lifters: These are ideal for lifting both workers and products to elevated spaces. They do not only guarantee strength but stability too. • Floor-level lifting tables: These are meant to provide you with perfect side loading and body positioning. They are key to preventing workplace injuries. • Stainless steel lifting tables: These are ideal for cases where manual lifting is necessary. They are able to make it easy for your manual lifters.

15. Sanitation Challenges When dealing with food products and pharmaceuticals, you should be aware of possible contaminants. Some of them are very serious in the sense that they need professional handling. So, you need to think of a crucial bargain if you don’t want to ruin your products. This will cushion you against significant financial losses. While the tools for handling warehousing contaminants are expensive, it may not be economical to purchase some of them. The most reasonable thing is to outsource a company that has the tools and the expertise of handling the challenges. It’s cheaper and practical. They’ll use tools like plastic pallets which are meant to facilitate safe handling of warehousing contaminants. Other expensive tools that the company you outsource is likely to use are pallet washers and pallet inverters.

16. Space Inefficiency Space efficiency is a very important factor in running a warehouse. Issues such as insufficient storage space, poor layout, and improper organization are becoming so popular these days and may limit the potential of your warehouse. Generally, space inefficiency can impact negatively on your profits. Outsourcing will help you use your existing space maximally. The experts will look at factors such as floor cover and elevation to ensure that enough space is created in your warehouse. This will help you maximize the efficiency of existing labor and warehousing equipment. It’ll also ensure that the products in your warehouse are made accessible. This’ll be made possible by the introduction of machinery like forklifts that are meant to help you access items stored in high places.

17. Unsafe Practices Since a warehouse is a workplace, it has to be safe for the employees. However, this is not always the case. There are bound to be safety challenges such as incorrect item stacking, fire safety concerns, motion injuries, and improper use of PPE (personal protection equipment). By outsourcing, you’ll have an opportunity to consult experts who understand safe warehousing practices. They will help your workers understand how to properly exercise caution at the facility and during the distribution process. Furthermore, they’ll conduct safety assessments to improve workplace safety.

18. Seasonality A fluctuation in demand is a serious challenge to the operations and market relevancy of your warehouse. Situations like global financial meltdown may be unavoidable but it takes proper preparedness to cushion your warehouse business against it. You need the right information pertaining to the manufacturing and retailing sectors to be able to withstand seasonality. There are so many information gaps that exist between your facility and other relevant industrial entities. The gaps need to be filled if you are looking to beat seasonality. The company that you outsource is expected to have access to this kind of information. They’ll offer you accurate and timely industrial news that you can use to focus on demand and to overcome seasonality. They’ll also help you rearrange your products depending on current demand.

19. Final Thoughts When it comes to managing warehousing problems, it’s irrefutable that you need to outsource. From the acceptance of the shipment to the dispatch of the same, you need all the professional help that you can get to ensure productivity and efficiency. You can use the above guide as a starting point to address some of the issues that apply to your warehousing business. Reliable Transport Link understands the value of warehousing and distribution in the supply chain and has recently introduced these services to cater for the supply chain needs of their clientele. They offer any kind of cargo storage—from heavy cargo, small cargo, to hazardous materials or dangerous goods. What’s more, their warehousing facilities are fully secured all the time by guards and CCTV security system. For more information on warehousing services, feel free to contact them at warehousing@GoReliable.ca.

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