At the heart of any successful shipping and forwarding service lies a successful warehouse management team. Warehouse management services can make or break companies and paint brands in a positive or negative light. Bad warehouse management impacts vendor reputation. It can affect the entire supply chain network. Understanding the value of good management practices and the chain reaction that bad warehouse management practices can cause will make it easier for team members and third-party partners to give warehouse service and management the attention it deserves. When warehouse management goes wrong, many problems can arise. Let's take a look at 7 of those issues that arise when there is bad warehouse management practices in place.
It Limits Inventory Flow
Improper management of warehouse inventory and production can cause backlogs of orders and impact the flow of stock into and out of the supply chain. With limited visibility and reach, the difficulty in logically planning and managing proactively becomes painfully apparent for shippers and 3PLs.
Perishables May Go Bad
When perishable goods and materials come into play, bad warehouse management practices can present an even more significant challenge. Without good monitoring and logistical planning, items can go bad sitting on the shelf, or worse, spoiled goods can accidentally ship out to customers.
Improper Planning Leads to Errors in Distribution
Without a solid idea of what options stay available and what goes in and comes out of the warehouse on any given day, distribution logistics becomes more difficult. These kinds of mistakes can severely damage the reputation of the shipping provider and their partners in the eyes of their customers.
Poor Warehouse Leads to Driver Trouble
Improper management practices and bad warehouse management can also impact drivers when they are on the road. Delays in pulling inventory and filling orders can cause delays in transportation drop-offs and delivery deadlines. A delay early on at the warehouse can compound delays down the road.
It Creates Trouble Tracking Inventory
Tracking inventory and offering real-time monitoring are expected services these days. Bad warehouse management practices make it challenging to track order fulfillment and to keep customers up to date about when their items ship out. It also causes conflicts when delivery promises cannot be fulfilled.
Bad Warehouse Management Leads to Customer Service Challenges
Customers are the heart and soul of any business, especially those relying on e-commerce sales and shipping services. Improper warehouse management can create problems with keeping customers satisfied. This, in turn, can cause customers to go elsewhere for their shipping needs.
It leads to Overstocking and Wasted Profits
Inventory management should also include plans for how to successfully mitigate overstocking. Unfortunately, as highlighted by Shopify, poor management and monitoring of warehouse inventory represents a leading cause of excess stock, resulting in $1 trillion in unnecessary costs annually. Having stock that doesn’t sell equates to wasted money.
Improve Warehouse With Port City Logistics
Chances are, any warehouse management team will deal with at least one of these issues at some point. The key to dealing with bad warehouse management practices is recognizing the signs and breaking the cycle before things get out of hand. Bad warehouse management can cause a chain reaction of issues and problems that can affect the entire network. But improving day-to-day warehouse practices by working with a company that offers both drayage and warehouse services rolled into one will enable proactive management and help improve your brand image. Contact Port City Logistics today to learn more.