30 November 2022 Even with expert management, there are some common mistakes in a warehouse. Find out which ones need to be eliminated! To manage a warehouse, it is necessary to plan, have strategies, and execute them effectively to keep all processes efficient, from receiving to the last mile. According to many managers, the biggest challenge is to reduce losses, increase profits, and maintain productivity. The task is not easy! Attention to the smallest details is required, as well as quick identification and response to adversities. And in your case? Can you manage the mistakes and learn from them? If you manage a distribution center and are looking for effective ways to handle it, you are in the right place. In this article, we list the 8 mistakes you should eliminate in your warehouse and provide tips to overcome them. Take a look below. Inadequate Slotting Slotting is a warehouse organization technique that aims to optimize space and make order picking more efficient. Improving product storage is very important for picking. Despite its importance, this is still one of the most common mistakes made in a warehouse that, if it has an inadequate layout, damages the entire logistics process of your business, causing problems such as: Receiving docks occupied while waiting for addresses to be released for storage; Deadlock of movements when an operation cannot be performed because it is waiting for another to complete; Overload in the use of high-cost equipment, such as forklifts; Picking at excess addresses; Excess memory in buffer addresses; Exhausted automatic systems. Inserted into your distribution center, in addition to making the most of your material and human resources, slotting brings advantages such as: Efficiency in order selection, as it prioritizes movement orders; Cost reduction with, for example, anticipation of movements during downtime; Greater efficiency by controlling the execution of movement orders; Balanced storage between excess lines, buffers, fixed, and picking areas. In other words, slotting helps ensure that goods are moved as little as necessary and as quickly as possible. Thus, by depositing the received product at the most appropriate address, you will achieve the desired operational and financial goals. You can count on perfect slotting when implementing a WMS system in your warehouse. The software has this solution, managing spaces automatically and ensuring that every square meter of your warehouse is well utilized and that stock organization allows maximum agility in carrying out activities. Neglected Accuracy If neglected, inventory accuracy can become a headache that directly affects warehouse efficiency and your business’s profitability, meaning it is crucial to correct this mistake in your warehouse. As a result, we can mention an increase in pending orders, poor customer service, a loss of productivity, and a high cost in the process, not to mention the losses resulting from discrepancies not identified in time to be corrected. In summary, having a high level of accuracy means having reliable and precise information about the products stored in a distribution center, that is, the exact proportion between what is recorded in the system and what actually appears in the physical warehouse. To increase the accuracy of your warehouse, you can implement an inventory management system, which brings the advantages of higher precision and total inventory visibility, resulting in reduced indirect costs, efficient process execution, and greater customer satisfaction. All these factors combined will greatly contribute to increasing the company’s revenue and profitability. 100% Paper-Based Processes One thing is certain: it is necessary and essential to have a record of all transactions. However, having physical paper documents is not the way to go. After all, even if you are organized, the use of paper increases the risk of errors and human mistakes. It also requires more hours of work to manage all the paperwork and materials, wasting precious time that could be used on another project. Moreover, by excessively using paper, your company is far from achieving green logistics, which is so important today. Having electronic records, instead of paper ones, makes them easier to find and access. Imagine typing a few keywords and finding the file you want to see? Your management and teamwork will definitely be facilitated. Additionally, the chances of errors in the warehouse are significantly reduced. By digitizing processes, you will increase your efficiency and accuracy, leading to an overall reduction in costs over time. Inefficient Picking How is the picking process in your warehouse? Inefficiency in this process is one of the main errors in a warehouse. Studies reveal that a single picking error can reduce the profitability of an order by up to 13%. The longer it takes, the higher the picking costs will be, and the more you will have to charge for products to compensate for the increase. Additionally, inefficiency causes delays and damages productivity. In all these situations, the customer will be dissatisfied and may not only stop buying from your company but also rate it negatively, influencing other potential buyers. To solve this problem, technology can be your best friend. Currently, there are several picking tools available on the market, from simple software to more modern machines. In short, they will support the identification, tracking, storage, location, classification, and handling of products. Processes Without Mapping Just like a car, a warehouse is made up of several parts that work separately. When there are failures and they are ignored, the consequences affect the functioning of the entire machine, regardless of which part “broke.” For proper identification and in a timely manner, mapping the entire logistics process is essential. It’s all about traceability control, but it offers the advantage of greater efficiency and accuracy throughout the warehouse. After all, just like in a car, in a distribution center, everyone must have the same rhythm and direction, to create an effective work environment and offer the best to the end consumer. Improperly Used or Ignored Technologies Are you using the full power of innovation in your warehouse? This is a mistake that needs to be corrected urgently. The failure to adopt technology and the failure to collect and analyze data not only cause unnecessary inefficiencies but also make your company less competitive as you are unable to detect trends, adapt, and respond promptly to market and customer changes. But how to change this situation? Basic tools such as a warehouse management system, computers, business intelligence dashboards, conveyors, barcode scanners, mobile printers, and dimensioning systems can immensely help you digitize your warehouse, achieve efficiency, and automate operations. Remember, you don’t need to go from 0 to 100, but it is important to start modernizing and automating warehouse operations. Moreover, if we consider the ROI of simple tools, it will far exceed the costs incurred in the absence of technology and relying on manual work. Lack of KPIs Not having KPIs is dangerous, as it is from them that you will see your distribution center’s performance. Similarly, using inappropriate indicators can be a trap for your company. With the right KPIs, measuring results and solving problems becomes a simpler task. An important advantage of technology is the amount of data it can provide to managers: today, there are intelligent software solutions that automatically provide various key performance indicators (KPIs) that help analyze processes and measure results. By automating data collection, you will have real-time numbers, which will greatly assist you in decision-making. With a WMS, you will be able to track all activities and know exactly your daily and monthly performance. For example, by measuring OTIF (On Time In Full), you will have a broader view of the level of service offered to the customer. If there are issues with delivery times, you can check for defects in stock organization, picking, shipping, or transportation. Identifying a high number of damaged orders may indicate a problem with a supplier, separation, or transportation, etc. Only when managers keep an eye on these KPIs can they address potential issues and resolve them as quickly as possible. Untrained or Poorly Trained Employees In general, employees feel more valued and empowered when they receive the right tools to perform their work. For a company to be productive, the involvement of its team and respect for processes and machines is necessary. Therefore, providing adequate training must be a priority, especially when new technology is implemented in the warehouse. Managers must plan in advance, ensuring that training times are included in the scheduled implementation of the new system. Additionally, it is necessary to consider staff training as something continuous. Periodic monitoring is essential to ensure that new tasks are performed correctly. It is also essential to implement procedures for training new employees or retraining when necessary. 8 Mistakes You Should Eliminate in Your Warehouse Deagor WMS per ecommerce può aiutarti!