Have you ever asked yourself “ With the same a warehouse management method, but there are many high-efficiency businesses, the process of transporting goods quickly, but there are many enterprises inefficient warehouse management process?” The critical point of this problem is that the managers have to know how to control inventory activities well. In order to do this, managers need to avoid 8 serious mistakes in warehouse management.
So, what are these 8 mistakes?, please see the details in the article below
1. Excess inventory
This is the most common error in 8 warehouse management mistakes to avoid. The consequences are very serious, which can lead to many risks for businesses. If the inventory is too much, it will occupy the area of other items, costing more arrangement and management time. Seriously, the product will be out of date, old-fashioned and not consumed, leading to economic losses. The cause of this mistake is due to the management can’t identify the market demands as well as business opportunities or risks, which lead to excess supply and oversupply of goods.
2. No training of professional labor
In any environment, people are always the deciding factor in business success. Of course, do not expect your employees to be good without training, which is a critical point that leads to other mistakes in warehouse management. So, let’s arranging your employees to specialize in each stage of the supply chain. At each stage, training them, improving expertise and build a professional working spirit for them.
3. Do not plan before implementation
A significant mistake that many businesses are currently facing is that they do not plan inventory management. This is a big problem and will lead to many consequences, causing enterprises to face many risks in the following stages. A tight plan will help you manage goods better and avoid inventory risks. Through the plan, you will have a broader view, and easy to follow, to prevent excess inventory.
4. Unsafe warehouse management
The warehouse is a place to store a lot of products, and it is also a place where accidents often occur unexpectedly, this causes severe losses of the commercial business and more seriously, which can affect the health and lives of employees. Besides, your employees can focus on working better if they know that they are protected. Therefore, when building a warehouse, you need to equip fire prevention, fighting equipment and prepare uniforms, protective tools for employees. Of course, when designing the warehouse, you also need to pay attention to the appropriate layout to avoid the case of falling goods, affecting staff.
5. Unbalanced work cycle
Many managers are working in the way of consolidating orders, they spend the last two weeks of the month pushing orders for customers but ignoring the production of finished products. Leading to the beginning of next month, they will slow down the progress of orders at the beginning of the month, or produce in a hurry, resulting in inferior quality products. If you are in this situation, change it quickly to avoid unnecessary errors, Working in order of priority to balance the work cycle.
6. The process lacks automation
The manual methods are quite slow and can cause many mistakes. Compared to dealing with their consequences, investing in an automated software system will be less expensive. So, invest in data collection and management solutions early, they will help you improve the speed and ensure the accuracy of goods management.
7. Label quality is not guaranteed
This is a mistake that happens not only in small companies but also in large companies. It shows the subjective in managing and controlling goods. Many people may think that labels are only for a short time, so they use only ordinary materials. However, you know, products not only exist in the warehouse but also participate in the transport process and are affected by external factors. Hence, they are easy to tear and discolour.
Therefore, when making labels, you should pay attention to the type of paper and ink quality to minimize the label damage from external influences.
8. Do not measure work efficiency
The next mistake in 8 mistakes you need to avoid in warehouse management is not measuring performance. Without measurement, you will not be able to know if the work you are doing is sufficient or not. And then, the good points are not promoted, and the mistakes will continue to repeat.
Of course, to measure job performance, you need to set KPIs for each department when planning. When evaluating, you only need to compare the results obtained with the KPI to find out the effectiveness of the work you are doing and the issues that need to be changed.
Above are 8 mistakes that should be avoided in warehouse management. If you are having problems, change immediately. Of course, you may be afraid to change too much in a short time. But if these mistakes still exist, it will gradually break down the profit potential of your business, so please adjust to avoid these mistakes as soon as possible.