Ways to Decrease Warehouse Management Challenges

02.27.23

Warehouses play a crucial role in product distribution, quality assurance, and customer satisfaction. Distribution centers manage a variety of tasks to ensure products reach consumers safely and in good condition. These steps include:

• Receiving goods from wholesalers or manufacturers.
• Organizing and storing products strategically.
• Picking, packing, and loading products to prevent damage and maintain their condition.
• Shipping products from the warehouse to their final destinations as quickly as possible.

With many critical responsibilities to handle each day, it's not uncommon for warehouses to encounter some challenges, errors, or oversights in the process. From inaccurate inventory records to improper space usage, several factors can compromise warehouse logistics and workflow.

Fortunately, distribution centers can implement certain methods and practices to prevent these obstacles as much as possible.

Read the full article or jump to a specific section:

• What Causes Warehouse Management Challenges?
• Tips for Fixing Distribution Center Challenges
• How Commercial Hail Structures Help With Warehouse Management
• Decrease Distribution Center Challenges with VPS 

What Causes Warehouse Management Challenges?

Various factors can interfere with warehouse management operations, such as ineffective space usage, inventory miscalculations, and inability to keep up with consumer demand. Below are six common issues affecting warehouse management orders and operations, along with tips to overcome them.

1. Inaccurate Inventory

When warehouses manually update and manage inventory data, it can lead to inaccurate stock information and obsolete inventory buildup. In turn, employees spend unnecessary amounts of time performing physical checks and correcting errors.

Here are some indicators of improperly updated and maintained inventory records:

• Expecting to find a product in a certain location but it's actually placed somewhere else.
• Trying to store stock but struggling to find a place for it.
• Accepting an order, then finding out later there isn't enough stock to fulfill it, resulting in a backorder. 
• Rejecting an order assuming there isn't enough stock to fulfill it, then finding out later there is.

Manual checks can cause miss-picks and delayed shipments, especially if workers visit a location that doesn't stock the product they need. These issues can also occur when storing products in an already full location. With growing standards and expectations from clients and customers — not to mention unsuccessful deliveries costing valuable time and profits — an automated inventory tracking system is more important than ever.

For instance, a solution might include a barcode scanner device that sends the information to specialized software, which stores and tracks inventory. This is incredibly helpful for supervising all inventory operations and logistics, ensuring timely deliveries, and minimizing human error, thus saving distribution centers from added stress, time, and costs.

2. Inefficient Space Utilization

An ineffective distribution center layout also interferes with deliveries and operations.

Just like inventory inaccuracies, a poorly organized storage center wastes time and revenue. The more time a picker takes to locate a product, the fewer orders they can fulfill. Without enough space, products continue to accumulate inadequately. This can result in work accidents, lost time searching for products, and diminishing merchandise quality.

Making the most of warehouse space, including storage systems, shelves, and selection routes, is essential to get items in and out efficiently. By optimizing layout and supply flow, staff and managers can better ascertain where products are coming from and going.

That way, they can reduce the risk of incidents caused by improperly stored products and traffic. They can also use their floor and space to store as much merchandise as possible.

3. Improper Labor Management

With various tasks like loading, product picking, forklift operating, handling materials, cleaning, and monitoring shipments, labor costs generally comprise 60-65% of the total warehouse budget. Managing an extensive labor force of associates and managers can be a challenge, especially with equipment expenses and availability to account for.

To make the most of the available workforce, warehouse managers should seek areas that could benefit from automated technology. They can start by reviewing all the tasks performed throughout the warehouse, then examining the systems and solutions they're currently using.

They can then try to increase their usage by automating more tasks. Doing so can reduce labor costs and fulfill orders more efficiently. This is assuming the warehouse has enough employees to perform tasks that can only be performed manually.

By incorporating more automation for repetitive, tedious, and manual tasks, employees can focus on more valuable and strategic responsibilities. Automated tasks might include following digital paths through the warehouse or loading and unloading boxes, pallets, and other containers.

4. Adapting to Seasonal Demand

Variables such as weather, seasonal changes, economic cycles, and trending goods can contribute to product demand. While some goods experience the same demand year-round, others are more sought-after during specific seasons.

Demand fluctuations can present some challenges for distribution centers. They may experience lower overall sales during some months, while demand exceeds their inventory levels during other periods. They might not have enough products in stock to fulfill abrupt demands, or they may not know where to store them on such short notice.

Warehouse managers should prepare their facilities for this influx of orders and deliveries. While they can't control shifting consumer demands, they should take the necessary measures to forecast them as much as possible. Being aware of demand changes and market trends can help managers prevent excess inventory, cut down storage costs, and avoid lost sales from a lack of inventory.

Here are some tips to equip a warehouse for particularly busy seasons:

• Use demand forecasting software. Implementing demand planning software can help warehouse teams determine which products they need during specific seasons and which ones they can cut back on.
• Communication is key. Distribution center managers should maintain strong communication with manufacturers, retailers, drivers, distributors, and any other team members. This ensures each group is up to date on demand patterns and can take the appropriate action.
• Sort through merchandise. Warehouse managers and staff should organize merchandise to push out seasonal products quicker. By storing these popular goods in the most convenient warehouse spaces, workers can easily pick them and put them away as needed.
• Use automated tools and equipment. Warehouse equipment like forklift trucks, pallet flow rack systems, and automated storage and retrieval systems helps ensure a more efficient flow during hectic seasons.

Ensuring a proper balance of supply and demand is vital for order fulfillment. By staying on top of market trends and demands, warehouse operators can order in-demand inventory early, properly store items, optimize the picking process, and adjust their transportation network accordingly.

5. Flawed Order Management

Customers use various methods for product ordering, such as e-commerce platforms, company websites, and offline sales mediums. This can make order management a complex, time-consuming undertaking. Order management entails every process from the minute a warehouse receives an order, including:

• Accepting the order.
• Picking and packing the item.
• Transporting, shipping, and delivering the product to the customer.
• Handling a return or refund if necessary.

While order management is a crucial component of warehouse operations, it can also encounter many errors. A flaw in any of these steps can compromise the entire process, often requiring a complete do-over. That means the customer will receive the order behind schedule, or they may end up canceling it. Both outcomes result in lost time and money.

Manual order fulfillment management methods, such as pen-and-paper or spreadsheets, can result in errors and occupy considerable amounts of time. There may be issues with storage capacity, pickers may retrieve incorrect orders, or a customer could receive the wrong product.

To ensure a smooth process and successful outcomes, warehouses can benefit from effective order management systems. These solutions help manage each element of the process, from shipping to customer notifications to inventory management, saving substantial time and labor.

6. Redundancies

Distribution centers typically perform several operations per item, collectively creating workflows. However, an unorganized or inefficient workflow can result in different actions, like sorting and picking, being repeated unintentionally. This leads to increased labor costs and lost time.

Investing in automation technology can help warehouses eliminate obsolete or unnecessary steps. A modern warehouse execution system can automate redundancies in tasks like order picking.

For example, a distribution center might use a barcode device to scan already-picked products, notifying the employee of any duplicates. These technologies help increase speed and efficiency, ultimately minimizing labor costs and improving overall customer experiences.

4 Tips for Fixing Distribution Center Challenges

Whether adjusting warehouse layout, ensuring a safe workplace, or protecting products from damage, various practices and strategies can improve distribution center operations.

1. Improve Layout Optimization

In an attempt to create more space and better organize products, vertically structured facilities may be optimal. A vertical building doesn't require additional land, which is why many distribution centers have opted to expand their storage vertically rather than horizontally.

This technique allows companies to increase their storage capacities and make their warehouses more visually pleasing. Another tip to enhance a warehouse layout is adjusting aisle widths. Warehouse aisles should be wide enough for workers to move through comfortably without compromising workflow efficiency. Forklift drivers and pedestrians should be able to pass each other safely and easily.

Distribution centers can also position fast-moving products closer to the shipping and packing areas. This technique can reduce cross-traffic and travel time.

2. Communicate Effectively

An effective storage system is only useful if workers know where to find everything. This is where proper communication comes in. After implementing an improved layout and system, managers should train all staff members on the correct places for equipment, vehicles, tools, and merchandise.

Warehouse departments commonly hold meetings at the start, middle, or end of shifts. During these meetings, leaders should discuss the current and future workload with employees, address important concerns or issues, and answer questions from the workforce.

Managers can also hold regular Gemba walks — facility tours to observe workflow, look for areas of improvement, and speak with employees about their progress and needs. Gemba walks may occur daily, weekly, or monthly depending on how well the organization adapts to these changes.

3. Improve Employee Safety

Warehouse work involves maneuvering large machinery, lifting and lowering heavy objects, and working in awkward postures. Naturally, these tasks can pose some risks to distribution center workers.

To put it into perspective, the United States warehousing and storage industry saw 46 work-related fatalities per 100 workers in 2021. Some common incidents include:

• Forklift turnovers.
• Chemical and hazardous material spills.
• Injuries from over-excursion or improper lifting.
• Falling objects.
• Charging station fires or explosions.
• Conveyor pinch point injuries.

Implementing proper safety practices is crucial for maintaining warehouse operations and saving lives. Here are some ways to do so:

• Perform inspections. Warehouse managers should thoroughly train employees in inspecting vehicles and equipment before use. This ensures workers operate everything safely and helps prevent machinery-related accidents.
• Integrate technology. Wearable technology can help monitor exhaustion- and heat-related conditions. That way, others can act promptly if a worker signals a need for help.
• Use proper equipment. All distribution center equipment should adhere to OSHA guidelines.
• Adjust traffic flow. Vehicle and pedestrian run-ins interrupt workflow and can be dangerous. As workforces and equipment fleets expand, managers should perform Gemba walks more often to examine traffic safety and efficiency.

4. Reduce Product Damage

With warehouses receiving hundreds of orders daily, quality control sometimes gets overlooked. When workers are under pressure to fulfill orders quickly, they may mistakenly gloss over crucial details during the picking, packing, or transportation process. This can result in delivering improperly packaged, incorrect, or damaged products to customers.

Damaged inventory compromises profits, company image, and customer satisfaction. Ensuring products maintain their safety, quality, and integrity is essential through every stage of the process, including receiving, storage, picking, packing, transportation, and delivery.

To ensure superb merchandise from the shelf to the customer's doorstep, warehouses should incorporate a proper quality control system. Here are three key areas to pay attention to:

1. Technology: Certain food products are susceptible to spoilage and require cold storage. Warehouses often use devices like accelerometers and temperature sensors. These technologies can indicate dips below recommended temperatures that may damage products, allowing workers to react quickly and accordingly.
2. Product handling: Proper merchandise handling plays a significant role in damage prevention. This includes inspecting items carefully, discarding damaged products before picking, and securing loaded pallets with stretch wrap. These practices should be incorporated into new hire training.
3. Storage: Many instances of product damage and loss result from improper storage. Warehouses should store products in a manner that accommodates their shape, weight, and structure, like metal or plastic containers. As mentioned earlier, high-priority or difficult-to-transport items should be easily accessible and close to shipping and packing stations.

How Commercial Hail Structures Can Help With Warehouse Management

Protecting equipment, facilities, and workers is an important part of successful warehouse management. At VPS, we aim to create safer, more efficient work environments for various organizations and industries. That's why we provide high-quality commercial shade structures for distribution centers and warehouses.

These solutions enable logistics teams to defend their property, equipment, and staff from overheating and harsh outdoor elements. That way, warehouse managers and personnel can focus on important tasks like packing, storing, shipping, and transporting items.

Our commercial shade structures can benefit warehouse management in the following ways.

1. Reduces Overheating

Prolonged sunlight exposure can damage storage trailers and products and overheat and exhaust workers. Our commercial shade and hail canopies can help prevent overheating and sunlight damage, helping protect valuable warehouse assets. They can also reduce the facility's heat island effect, minimizing dangerous temperature increases.

2. Lowers Costs and Improves Efficiency

Intense heat and humidity can damage merchandise like clothing, electronics, books, furniture, and home decor. By implementing our commercial shade structures, warehouses can avoid the cost and hassle of replacing these items. 

Additionally, these shelters can minimize the risk of heat sickness for workers, resulting in fewer missed days and productivity losses. Because our structures help provide more comfortable working conditions, distribution centers may also boost employee retention.

Furthermore, our photovoltaic panel-equipped structures can help decrease warehouses' energy reliance, thus reducing costly power grid electricity.

3. Optimizes Layout

VPS has a variety of commercial hail structures, each with unique features and benefits. Our numerous options make it easy for warehouses to find the right solution for their facility and needs.

For instance, our mass coverage hail canopies feature a modular package, allowing warehouses to customize them to their width and length specifications. They also include special configurations to accommodate their workplace layout.

4. Raises ESG Score

With businesses across many industries increasingly prioritizing sustainability and ethical practices, distribution centers can benefit from a higher environmental, social, and governance (ESG) score. This metric is used to evaluate a business's efforts in these areas and how they address risks like carbon emissions, pollution, waste, worker safety, and energy efficiency.

A higher ESG score indicates warehouses make a diligent effort to mitigate their risks. Installing a VPS commercial shade structure can improve a distribution center's ESG score, as it displays its commitment to effective risk management.

5. Resists Weather Extremities

Our loading dock canopies and warehouse shade structures are designed to withstand snow, wind, and cold temperatures. Extreme weather conditions can interfere with distribution centers' efficiency, output, and overall workflow, so it's important to have a solid defense mechanism for equipment, transportation, and workers.

We engineer our commercial shelters to meet local building codes for snow and wind. We also provide water-resistant fabrics for easier, quicker loading and unloading in the range. As a leader in hail protection structures and covered parking, warehouses can count on us to help them preserve their most valuable assets from heat, sun, and weather damage.

Decrease Distribution Center Challenges With VPS

Finding innovative ways to maximize layout, combat weather and overheating, lower costs, and improve efficiency is essential for successful warehouse and distribution center operations. Investing in a commercial hail protection structure from VPS is an excellent step in achieving these objectives.

Since 1991, we've designed and engineered covered parking structures protecting over 120,000 vehicles. Our extensive industry expertise allows us to consistently deliver projects upholding the highest quality standards. We stay up to date with hail prevention design and technology to provide successful results.

We have various hail protection shelter options and styles, including covered walkways, cantilever structures, solid membrane, solar hail protection, and more. Browse through our commercial shade structures to find the best fit. To inquire about our products and solutions or request a free quote, contact our team at any time!