Many companies, regardless of their size or experience, have problems when it comes to managing their warehouses. There are many reasons for this, but it often stems from not having a proper plan in place. Below, you will find some of the biggest warehouse mistakes that so many companies are making. Understanding these issues will help you learn how to avoid them before they become a larger problem.

How to Avoid the Most Common Warehouse Mistakes

Overstocking the Wrong Items

You may find that you have some items that simply aren’t selling as fast as you had hoped. Don’t make the mistake of ordering more of these items if they are not selling. Overstocking items is a big mistake that many companies make, and it can be a large problem. It means that you are using up space in your warehouse that would be better suited to other items that will sell.
Make sure that you have an understanding of the supply and demand of the various products in the warehouse. This helps to ensure that you aren’t wasting warehouse space.

Understocking Popular Items

On the opposite end of the spectrum, there is a danger when it comes to understocking. It could mean that you don’t have enough of a certain item that customers demand. When they aren’t able to buy what they need from your company, there’s a good chance they will simply head to a competitor to buy the same product or something similar.

Just as you need to check the popularity and demand of items to ensure you aren’t stocking too much, you need to do the same to ensure you aren’t stocking too little. Warehouse management systems can make it easier to find the information you need to ensure you are stocking the correct amount of each item.

Not Keeping Organized

Another common warehouse mistake is not keeping things organized. Warehouses can become disorganized faster than you might realize. If you allow this to happen with your warehouse, it can create a host of problems. For starters, it will mean that your employees are slowed down when they are searching for the products they need to retrieve for customers. This has the potential to frustrate customers, and it could mean that you don’t have a true understanding of your inventory. A well-organized warehouse will always be ordered, organized, and efficient.

Not Following Safety Protocols

Another potentially costly warehouse mistake is not following the health and safety procedures that are required. Even when your warehouse is organized, it doesn’t mean that it’s operating safely. If there is an accident where an employee falls from a ladder, something topples onto them, or they are injured by an errant forklift drive, it will cause serious problems.

Not only is there a risk of serious injury, but the employee may also be unable to work, and they could sue the company. Your business could also face fines from OSHA. Make sure the staff knows, understands, and follows the safety protocols.

Not Training Staff Properly

Staff training doesn’t always get the attention it deserves, but it could affect your warehouse more than you realize. If your staff doesn’t know how to use the tools provided to them properly and can’t find products on the shelves, they will be inefficient at their job. Your staff needs to have training on how to be as effective and efficient as possible in their role.

Additionally, managers in warehouses need to ensure the employees know that they are valued and appreciated. It will cost less to keep your employees well-trained, happy, and motivated than it will to hire and training new employees. When you spend time on training and improvement for the employees, they will feel more motivated to work hard.

Not Using a Quality Warehouse Management System

Some companies still cling to the idea of paper management of their warehouse. This is an outdated method that simply doesn’t work today. Too much of the world is digital to make this an effective way of managing a warehouse or just about any other part of your business, for that matter. Paperless processes through the use of a warehouse management system will help to speed up tasks and make the process more efficient overall. Don’t let the fear of a new system keep your warehouse in the Dark Ages.

Now that you have a better understanding of the most common warehouse mistakes, it should be much easier for you to avoid making them for your company’s warehouse. You’ll find that having a great WMS will help you to avoid making most of these errors, so make sure you choose the right warehouse management system.

Warehouse Management System for SAP Business One and Macola Software

WiSys has re-invented how ERP systems create value for customers. To meet the business challenges of a new economy, companies need to focus on reducing reaction time to maintain customer loyalties and improve supply chain operations; from receiving through production to delivery. WiSys Agility products have been designed to achieve efficient Warehouse Management (WMS), Supply Chain Management (SCM) and Business Intelligence (BI), all from one software publisher. Contact us to learn more.