5 WAREHOUSE MANAGEMENT PROBLEMS ERP CAN FIX

As the 2021/2022 global supply chain events make their impact felt on local businesses, many are finding themselves in an increasing dynamic work environment. No matter your industry, dealing with warehouse problems can create a gridlock to operations. The best approach for improving the longevity and sustainability of your warehouse is to implement flexible and scalable processes.

In this blog we’ll discuss 5 of the most common warehouse problems distributors face and how utilizing a comprehensive ERP system will simplify your warehouse processes.

Inventory Accuracy… or lack thereof

The most important part of your distribution business is the inventory. We often see distributors struggling to maintain proper counts of their products; with the hustle and bustle of today’s never-ending demands, it’s difficult to keep up with. But maintaining accurate counts with fast turnarounds is a necessity for overall profitability.

Solution: Automated solutions offer real-time, accurate information about your stock levels and composition. Awareness of current stocks, dead stock, high demand items and seasonal products is made easy with today’s leading ERP systems and integrated WMS (Warehouse Management Systems). WMS eliminates hours of tracking misplaced products and inaccurate, paper-based inventory counts. Automatic inventory ranking system will rank your inventory according to industry leading business rules, providing a clear picture of what inventory items are important, not so important, and truly dead stock.

Optimizing Picking Efficiencies

Picking is where the majority of warehouse management problems happen. However, these common issues often occur during the receiving or put-away tasks, especially when they’re completed in a frenzy. Consequently, it takes too long to find an order and get it from the warehouse to the customer. Poor picking easily disrupts your inventory control system.

If you’re struggling to improve operational efficiency, a small change like tweaking your picking process could go a long way towards boosting both your productivity and your bottom line.

Solution: Using RF barcode readers, designed exclusively for wholesale distribution companies, speeds up this process, creates efficiencies and minimizes steps. Pickers know exactly where to go to get the product and the system assigns bins for put-away when new product arrives. Barcode scanners and ERP minimize human error and tell you what is on order, on the shelf, in a different warehouse or on the truck. Dedicated attention to master data will help to keep your system accurate and reliable.

Quality Control

More often than not, workers who are in charge of quality control are also responsible for the picking, packing, and shipping of inventory items. Thus, most error aren’t found until they arrived at the customers doorstep. This is especially prevalent in today’s work environment where warehouses are trying to ship more with less staff available.

Solution: Ideally, you need an independent level of quality control to ensure inventory management and supply chain issues. This separate level of authority will often provide the motivation to manage everyday inventory issues in a structured manner that encourages accountability.

However, an automated quality control function can record vendor accuracy, improve stock rotation, and reduce the need for manual processing of warehouse items. Quality control systems ensure that the rest of the warehouse management program is functioning as intended – the more transparent and accessible your data is, the more you can reduce these risks and have a consistent dependable warehouse that staff and customers can find maximum efficiency and trust in.

Redundant Processes are… Redundant

There is nothing worse than wasting time performing the same tasks multiple times. While necessary in some cases, these redundant processes are time-consuming and increase the cost of labor.

Solution: An ERP solution will streamline warehouse process, make data accessible to your entire team, and boost productivity by eliminating duplicate tasks and human errors and maximizing resource allocation. Automated systems are advancing rapidly, and global trends are compelling warehouse managers to maintain up-to-date systems to rapidly adapt to ensure they thrive, not merely survive. It’s important

Labor Costs

Warehouse managers are constantly striving to increase their productivity while minimizing their labor costs, in a labor-intensive environment. And like most, your warehouse is probably filled with expensive equipment and a large labor force to get the job done. It’s difficult adjust shifts, and account for fluctuations in logistics while managing a vulnerable workforce.

Solution: The two major strategies for addressing labor-related costs include maximizing your available labor and replacing labor with automated systems. And with the right combination of skills, motivation, excellent working conditions, training, and flexible hours, you’ll see an increase in employee productivity and the overall performance of your warehouse.

Make the Right Choices for your Business

You need a business management solution that will help you cut costs, while increasing revenues.

Learn how streamlining your distribution business to become more responsive to customer demands can give you an edge over your competition. Contact the ACC team to schedule your discovery call!