Common problems a warehouse manager faces everyday
In an Intermec study, we discovered an intriguing fact about warehouse managers. According to the study, one out of every six warehouse managers is unlikely to review their workflow processes unless a customer complaint is raised. That is not difficult to believe. However, contrary to popular belief, this is not always their fault.
Warehouse managers are frequently hampered by challenges such as tight budgets, lowering operational costs, multiple delivery channels, and so on. Fortunately, warehouse automation is already attempting to point us in the right direction.
Here are some logistical issues that warehouse managers frequently face:
1. There is always a budget constraint
A large budget is only a pipe dream when it comes to medium- or small-business warehouse management. Businesses believe that by cutting expenses in warehousing, they can save significantly. The scope is, in fact, enormous. Having said that, budgeting is something you will always struggle with, especially if you manage a warehouse in the manufacturing industry.
There is, in fact, a lot that can be accomplished by optimizing processes.
It will, however, take some foresight, planning, and discretion to develop processes that can fit within your limited budget.
2. Constant effort to reduce operational costs
You do not have control over your operations budget. Nonetheless, you will be responsible for overseeing your warehouse’s day-to-day operations.
Customer service has grown in importance as the supply chain has evolved. As a result, the constant effort now is to reduce operational costs while maximizing customer service.
Increasing productivity and maximizing asset utilization are the keys to lowering operational costs.
3. Ensure stock availability and shorter lead times in order to handle smaller, more frequent orders
Warehouse managers are now dealing with smaller orders at a higher frequency as e-commerce grows. This is true even for most manufacturing warehouses, as lead times must now be shorter as the economy is driven by supply rather than demand.
This necessitates greater stock availability and shorter lead times. This is why your bosses want you to increase stock availability, speed up pick-up, and shorten lead times.
The key is to improve your picking and packing strategies, which can also speed up delivery.
4. The impact of seasonal demand
Predictable sales are no longer a reality in today’s world. This is why markets place their bets on holiday season demand.
In that case, how much more space and time can you make available? This is a time when you must increase your resources. Data analysis and advanced insights into customer behavior may be able to get you there.
If you find that this post touches on some areas where you require assistance, please feel free to contact us to discuss relevant and strategic solutions.