There’s about 2 months of mundane, global inventory lying anywhere around the world at any given moment. That’s approximately $12 trillion. Although, companies around the globe are constantly trying to improve their efficiency and performance, they often call it quits when it comes to warehousing despite understanding the fact that their warehouses aren’t optimal.
Reports claim that most of the mid-segment warehouses lose about 3,000 work hours in a year because of workforce inefficiency.
Each industry faces some challenges particular to its nature which can also vary from product to product. There are, however, some issues mutual to all the firms out there. In this post, we’ll talk about the complications customary to all the warehouses:
1. Inaccurate Inventory Tracking: The term ‘inventory management’ refers to the total control of inventory. Beginning at receiving, it only ends once the goods have been shipped and received by the customers. Not having a complete visibility of inventory would lead to excessive inventory pile-up or unexpected shortages. Now, both the scenarios are detrimental. Overstocking tends to decrease the cash flow and increase the expenses. The latter however possess a greater threat since it leads to unfulfilled orders and customer dissatisfaction. Use cycle counting and cycle count planning to achieve a better inventory accuracy.
2. Inefficient Space Utilization: A large expanse does not ensure smooth running. It is vital that you effectively plan the warehouse and optimize storage systems, racking and pallet patterns. This helps in avoiding unnecessary labour costs. Employ narrow aisle machinery instead of counterbalance equipment. Long load and multi-directional forklifts increase storage by up-to 40%. Also, make sure that the fast-moving and high-selling inventory is stocked at the warehouse front.
3. Slow Picking Process: Every extra minute spent on inventory can have a major impact on operating costs. Functioning on manual processes, many firms lack a common route that should be followed to pick the products for shipment. Also, since the inventory is disorganized, it takes longer to get through the rubbage to the desired product. With sequenced order picking and system-directed putaway, the routing gets automated and travel time is minimized. It also goes easy on workforce and machineries reducing their overall wear and tear.
A logistics company’s efficiency depends upon how well its warehouses are equipped. It’s exigent that you invest in cutting-edge technology. It is equally important to invest in workforce development. Doing so empowers them to do their job effectively and efficiently.
We, at TNL Cargo, have an outstanding network of global connections which guarantees safe and timely transfer of goods to multiple destinations. We live in an electronic world and have a competitive advantage over other businesses. Feel free to contact us if you’re facing difficulties managing your warehouses or if your logistic partner isn’t keeping pace with your business.