5 Warehouse Management Mistakes That Can Ruin Your Business

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Operating a business involves a whole range of complex challenges. To run a smooth warehouse operation, there are several major areas that you must address. Failure to do so, will inevitably lead to costly and potentially catastrophic consequences down the line. As a manager, it is your chief priority to keep a handle on any issues that may result in reduced output and efficiency throughout the workplace. All time and money spent on optimising warehouse performance will help ensure a safer work environment and ultimately, a more prosperous future for your business.

Here are 5 warehouse management mistakes that can ruin your business.

1) Failure to upgrade old and outdated machinery

Central to providing an efficient warehouse operation, is the usage of state-of-the-art tools and machinery. Not only does new technology help guarantee higher output levels, it ensures greater safety for personnel. Old equipment greatly increases the risk of workplace related injuries and enabling them to continue using inferior tools and operate old machines, results in a warehouse that will never reach its true operating potential. For help on selecting first class equipment for your warehouse, such as pallet racking systems, get in a touch with a trusted warehouse equipment supplier.

2) Not Stock-Taking On a Frequent Basis

All warehouse operations depend on precise inventory counts. Neglecting to do inventory checks creates a lot of headaches and will likely end up costing your business a lot of clients. While seen as a time consuming chore by those tasked with doing it, it’s essential for ensuring the running of a successful warehouse. Effective stock-taking means having a suitably robust software package in place, that can handle your warehouse demands.

This goes back to Mistake 1), where not upgrading equipment (including computers and software) on routine basis, will result in reduced output. With modern software that is geared towards your industry, the stock-taking process will be less stressful and completely accurate. Before committing yourself to an expensive software package, be sure to request a demo version (if possible) to see if the program satisfies your business requirements and isn’t overly complicated to use. An advanced software program that has a million different features, is of little value if it’s too complicated.

3) Neglecting to Define Appropriate Reorder Points (ROP)

Maintaining the correct amount of stock is a much simpler task when relevant reorder points have been defined, for each SKU (stockkeeping unit). As a warehouse manager, you must have an automated process in place that requests the products to be reordered, once the ROP has been reached. With an automated process in place, your warehouse will never be understocked on important items.

4) Allowing The Warehouse to Become Untidy

When your warehouse becomes dirty and unkempt, it slows everyone down and creates confusion among the workspace. Forklift operators who are unable to navigate the paths safely, put themselves, their warehouse equipment and their fellow workers at a heightened risk of injury. For this reason, it’s important that your warehouse has a strict cleaning schedule in place. A neat and tidy premise will help guarantee maximum worker efficiency and a safe working environment.

5) Not Implementing Necessary Safety Guidelines

Warehouses by nature, are a hive of activity, with workers and (often) dangerous equipment and machinery working in unison with each other. This means that a comprehensive set of safety guidelines must be drawn up. Rather than set about creating your own set of Occupational Health & Safety (OHS) policies, it’s strongly recommended that you seek out a qualified warehouse safety specialist, who can develop an appropriate set of guidelines for your business.

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