Do spikes in demand catch you off guard? Supply chain upheavals highlight the weaknesses in traditional warehousing systems. They included irregular demand, irregular shipping schedules, and inventory inaccuracies. In addition, it shows the need for transport flexibility and scalable warehousing storage solutions. What challenges can a good warehousing system help solve?
1. Erratic Demand
In the recent global health crisis, retail businesses saw erratic demand. Health goods spiked in demand, while fashion items saw a dip. This erratic demand can lead to business losses in some products and unhappy customers because of unfulfilled orders.
Robust warehousing solutions help reduce information gaps in the supply chain. A warehouse manager can stay ahead of spikes by communicating changes to the manufacturer on time. More accurate inventory data also enables better response to seasonal demand because the system provides better analysis of past intervals.
2. Redundancy in Processes
Traditional paper ticketing presents several risks. First, several people handling one ticket is a health risk because viruses and germs can pass. Second, inaccuracies in paper input can lead to inventory misplacement. Finally, paper tickets can be misplaced.
An automated warehousing storage system reduces redundancy in warehousing and improves efficiency. For example, barcode technology eliminates paper tickets and quickly passes inventory data from one stage to another.
3. Inventory Inaccuracy
Inaccuracies in the warehousing system lead to high costs, lowered productivity, and poor customer service since inaccurate data flows from one process to another. The business will also lose revenue since unhappy customers are unlikely to come back.
Automating a warehousing storage system increases accuracy, enabling the warehouse manager to see correct inventory levels for different goods. It raises productivity and customer service.
4. High Labor Costs
Manual labor accounts for a significant part of the operating expenses. There are packers, supervisors, administrative personnel, and the support staff. Sudden changes in shift coupled with erratic demand throw the whole operation in a spin. It lowers productivity, which translates to higher costs compared to the revenue.
A complete warehousing storage solution helps lower labor costs in two ways. It helps allocate labor more efficiently by showing warehouse areas with more activity. It also reduces manual paperwork and the staff needed for these tasks. Lowered labor costs translate into a more profitable warehousing operation.
Would you like to see higher efficiency and lowered costs in your warehousing operations? Then, prioritize deploying robust warehousing solutions.
For more information, contact a warehousing service like Flint Warehousing.Share