Mistakes with warehouse storage are the leading cause of a high shrinkage. The reason is that employees take advantage of your poor inventory management system to steal from you. Besides, without proper stock records, it’s almost impossible to calculate inventory losses.
If you don’t take action soon, the high shrinkage will lead to massive business losses. So your business will struggle to survive, and the losses may lead to its demise. That’s why you must act now and curb these problems.
To help you out, here are six common mistakes with warehouse storage and how to avoid them.
1.Carrying Too Much Inventory
To avoid stockouts and miss out on sales, many businesses make the error of carrying excess inventory. It’s costly for these businesses to manage this high level of stock. Besides, they carry the risk of having obsolete and redundant stocks.
So, to overcome these challenges, you need to learn more about the optimal level of stocks to maintain. Besides, negotiate with your suppliers to reduce lead time, eliminating the need to store excess inventory. Also, look for resources that guide you on the best stock control methods to use.
2.Not Optimizing Picking Paths
Your company should also look for ways to create efficient picking paths in your warehouse. You want to make it easy and fast for your employees to access various items. So, see more here to learn how to establish an effective warehouse storage layout.
3.Manual Stock Management
Many small businesses are still using manual methods for stock management to save money. The problem is that these methods are tedious and prone to errors. That’s why your business should invest in the latest warehouse technology to overcome these problems.
4.Neglecting Warehousing Health and Safety Guidelines
Many companies tend to overlook the hazards warehouse employees face until something bad happens. These companies only act after an employee is seriously injured or gets sick due to poor warehouse conditions. To curb these problems, you need to keep up with the modern warehousing health and safety guidelines.
5.Ignoring Staff Development
Some business owners argue that warehousing staff development is a waste of money. The assumption is that these employees already have the right skillsets for the jobs. However, to boost efficiency, you must invest in the latest warehouse technology.
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6.Lack of Effective Performance Tracking Tools
Also, avoid the mistake of not having warehouse inventory management tracking tools. You need to have a means of checking your performance and finding inefficiencies. The idea is to get data that guides you on necessary warehousing improvements to undertake.
Avoid Losses by Avoiding the Common Mistakes with Warehouse Storage
To enhance efficiency and avoid losses, you must avoid the above common mistakes with warehouse storage. These are things that increase inventory holding costs and lower productivity. So, to avoid these mistakes, invest in the latest warehouse technology.
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