10 warehousing mistakes and how to avoid them

Warehouse mistakes can easily occur, regardless of how much training is provided or how well-run an organisation is. The key, however, lies in how your organisation prevents and handles these errors. There are many factors to consider when it comes to avoiding warehousing mistakes, such as the role of excess inventory, inefficient picking, poor safety management, or understocking.

These warehousing mistakes not only affect profitability and revenue but can also impact worker health. However, choosing the right warehouse management system (WMS) can reduce the likelihood of these errors and in the process protect your organisation’s reputation and revenue.

Warehousing mistakes and how to avoid them

To effectively manage a warehouse, your organisation needs to adopt a nuanced approach that is shaped by the industry you operate in and the nature of the items you stock. However, while the intricacies of warehouse management may vary by organisation, there are core principles that can enhance operations across all warehouses regardless of industry.

Here are ten common warehouse mistakes to avoid, along with how a warehouse management system can be used to avoid them. By understanding these errors, you can streamline operations regardless of your industry.

Excess inventory

While holding excess inventory may appear to be a proactive measure, it can turn into a costly warehousing mistake. Though a stock of items may serve to meet spikes in demand, there is the potential for money to be tied in stock that either remains unsold, expires, or becomes obsolete – leading to missed opportunities. Beyond the financial implications, the practical impact of excess inventory on warehouse efficiency is also a cause for concern. An overcrowded warehouse not only makes it harder for employees to navigate but it can also hinder overall operational efficiency.

To address the causes of excess inventory and enhance warehouse efficiency a WMS can be used. This piece of software can track stock levels and encourage a demand-driven inventory. Additionally, receiving larger orders in small batches can minimise the reliance on the long-term viability of items.

Inefficient picking

In a well-organised warehouse, employees can find products easily, enhancing the efficiency of order fulfilment and reducing picking and packing errors.

Failing to optimise picking processes, such as not grouping commonly purchased items together or spreading the process over a large amount of space can reduce efficiency. Inefficient picking processes can reduce the order fulfilment rate and increase picking costs, ultimately harming your profitability.

One effective way to improve processes is to optimise picking pathways. Employ a WMS to analyse item locations and evaluate their picking speeds. Place items that are frequently purchased together near one another to reduce picking speeds and continuously use the WMS to assess picking pathway efficiency. With this data make real-time changes and don’t forget to consider evolving customer trends.

Poor safety management

Failing to comply with recommended health and safety guidelines is a warehouse mistake that can carry significant financial and personal consequences. In the event of an employee sustaining an injury on the job, not only do they require time to recover, but it may also result in legal repercussions for failing to uphold a safe working environment.

Take a proactive approach and guarantee the safety of your employees. Implement strict health and safety policies (if there are none) and be sure to schedule regular health and safety checks to continuously improve your practices.

If possible, use a WMS to automate physically demanding tasks or those that bring a potential risk of injury. Automation not only minimises the likelihood of workplace accidents but also shows your commitment to prioritising workplace safety.

Understocking items in demand

Effective inventory management is crucial; while excess stock can be problematic, understocking items also creates challenges. From a consumer standpoint, frequent unavailability of products due to inadequate management of stock can lead to frustration and may cause customers to purchase from competitors.

To prevent understocking, take advantage of the analytical capabilities of a WMS to track sales, monitor inventory levels, and reorder stock. Some warehouse management systems even offer automation features to ensure that stock is automatically reordered when it reaches a certain level. The automation of the reordering process, not only prevents understocking but also enhances customer satisfaction by maintaining product availability and reliability.

Lack of staff training

Neglecting to provide training for your staff can have a myriad of negative impacts. When workers feel unsupported by their employer, the likelihood of them leaving the organisation increases. Moreover, inadequately trained employees are prone to lower productivity due to a lack of proficiency. A lack of experience or knowledge can mean that employees are more at risk of experiencing workplace injuries as they do not know how to ‘properly’ carry out a particular task.

To overcome this ensure that each employee receives ongoing training. Work with them to create personalised training and development plans that are aligned with their individual goals. For a data-driven approach to training, use a WMS to track employee performance and highlight areas where additional training is required. A proactive approach not only creates a skilled workforce but also mitigates potential issues associated with inadequate training.

Inadequate planning

The warehousing industry is fast-paced and prone to changes. Failing to adapt to current trends can reduce your operational effectiveness as well as allow competitors to capitalise on opportunities that you have missed.

Don’t get complacent and stick to processes because they used to work: stay proactive and constantly look for ways to improve and adapt to new processes, procedures, trends, and technologies. 

To make this easier, a WMS can be used to analyse your current processes. This can help to highlight your strengths as well as identify areas where things can be improved. By staying flexible and responsive to changes, your warehouse can stay efficient and ahead of the competition in an ever-changing industry.

Poor warehouse layout

The layout of a warehouse needs to be considered: inadequate planning can impede productivity. For instance, if workers have to go to different locations to complete a single task then this can hinder the efficiency of a warehouse.

Leverage the capabilities of a WMS to analyse employee performance and make layout changes accordingly. Having dedicated spaces for different tasks can work well to ensure that employees can do their responsibilities with maximum efficiency and promote an optimised workflow.

Sub-par housekeeping

An untidy warehouse is not just an eye sore, but it can also lead to inefficient picking, reduced productivity, and compromised safety.

Adopt good housekeeping practices by encouraging employees to tidy up after themselves and ensure that the warehouse undergoes periodic deep cleaning. To reinforce this commitment and ensure these tasks are not overlooked, consider documenting these processes within a WMS.

Inaccurate inventory tracking

Failing to keep accurate inventory records is a straightforward, yet common warehousing mistake. However, by incorporating a WMS that integrates with various processes and technologies within your warehouse, you can ensure that you have access to real-time data about your inventory levels. Consequently, inaccuracies are prevented, and operational productivity and efficiency can improve, as less time is spent fixing the errors caused by poor inventory control.

In the twenty-first century, there is no need for a warehouse to rely on paper documentation to track processes. Using warehouse technology like a WMS makes it easy to efficiently manage your data and inventory. With this software, not only do you gain a clear view of your stock, but you can also use the data and insights provided to mitigate potential warehousing issues. Additionally, the automation capabilities of a WMS enable you to optimise warehouse productivity and ensure that your operations are streamlined and efficient.