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8 Warehouse Management Problems That Often Occur and Their Solutions

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8 Warehouse Management Problems That Often Occur and Their Solutions

The pandemic will slowly become endemic with the distribution of the vaccines that have been given. However, it is undeniable that the corona (Covid-19) has hit the economy and business in Indonesia. One of the sectors is logistics. 

Implementing the "new normal" policy will not be easy to revive the logistics business that has dropped deep enough. 

Today's main problem is the very sharp decline in people's purchasing power. The goods already in the warehouse did not move much. 

Therefore, during a pandemic like today, the problem of warehouse management can be a severe problem for business actors.

Any company with a stock storage warehouse or inventory of goods certainly needs proper warehouse management.

The goal is that the distribution of production goods can be done routinely and not damaged or lost.

For that, you need structured and effective management. Why? Because poor inventory management will have a destructive and detrimental impact on business actors.

As a business actor, suppose you do not know what problems are threatening and how to overcome warehouse management during this pandemic. 

8 Warehouse Management Problems That Often Occur and Their Solutions 

In that case, it will have a fatal impact on the business that you have been fighting for so far. Here are eight problems that often occur in warehouse operations in general:

1. Difference in Stock of Goods

One warehouse asset that should manage carefully is the stock of goods. 

Because the company that manages the stock of goods in the warehouse is the same as operating the operational costs of a company, managing the supply of this item is not easy because the company has written notes. The stock in the warehouse must be appropriate. 

Many things cause the difference in system data with actual in the warehouse. One of them is the lack of physical stock checks, manual stock management, etc.

These things can cause the loss of goods when stored.

2. Stock Management is Still Manual

There are still some companies that use conventional methods to manage their goods. Manually managing goods is considered inefficient and can cause many problems due to human error that can cause differences in the stock of goods in the warehouse. 

For this reason, companies need to implement digital management to be more efficient and maximize. One way to reduce the risk of manual input errors is to use a barcode system (scanning data with a barcode is much faster than typing). 

In addition, it should also pay attention to the ordering and release of stock by the FIFO or FEFO method.

That makes it possible to transfer stock from one location to another or between warehouses.

3. Less Careful During the Process of Receiving and Sending Goods

Receipts of goods which not recorded correctly will impact the accuracy of the stock of goods. As a result, the company can run into serious problems. 

We do not know how many items are currently available in the warehouse.

On the contrary, this also applies if the delivery of goods is also not recorded correctly. 

The number of items in stock could be minus because it recorded that the things that came out were more significant than those that came in. For the company to manage the inventory of goods properly, it is necessary to have regular and orderly records.

4. Poor Management of Inventory Locations

Placement of goods in warehouses is also a severe problem if not taken care of properly. The reason is that this will impact warehouse efficiency and neatness. The company should have a spacious, clean, and safe warehouse that can position the goods in strategic places. 

And to make it easier to find items in the warehouse, you should put a label on the storage area. Companies should provide high shelves so that space in the warehouse can be more efficient.

A messy and disorganized inventory room will undoubtedly slow down the process of storing or retrieving goods and causing problems in stock management.

Therefore, it is crucial to make a good warehouse arrangement to find goods easily.

And it can also reduce the risk of goods mixed with other items. 

You can try to separate items and place them according to their characteristics. For example, the most frequently sold products should be on the front shelf, easily accessible for quick pick-up and delivery.

5. Expired Products Mixed with Other Products

Mixing new and old stock will create confusion when recording and checking stock items. 

When there are these two items, it's a good idea to separate old stock and new stock to make it easier to calculate the amount of old stock sold and unsold. You can also provide a special place for a new store to avoid mixing up new and old stock.

6. Rarely Counting Stock

8 Warehouse Management Problems That Often Occur and Their Solutions

Mistakes that often occur in warehouse management are errors in calculating warehouse stock. And this results in a difference between the amount of stock and the availability of goods in the warehouse. 

This problem is crucial because if it happens, the business owner cannot fulfill the customer's order. And it causes customers to lose confidence in the business you run.

Therefore, it is essential always to check the stock of goods in the warehouse regularly and periodically. Do not let there be differences in recording the goods available in the warehouse.

7. Poor Planning System for Stock Goods

A poor planning system for stock items can make warehousing activities not run properly. It takes a careful planning concept to control the inventory of goods in the warehouse and the distribution of goods. 

You can do this by creating a well-structured planning system.

The goal is to minimize errors so that they don't impact the smooth running of your business. 

8. Incompetent Human Resources 

Incompetent human resources are also often a problem in warehousing activities. Why? Because warehouse staff plays a significant role in the smooth warehouse management. Suppose the warehouse staff is not competent with their work, of course. In that case, this will hamper the activity process in the warehouse.

In many cases, warehouse staff is also responsible for multiple jobs. A lack of knowledge about the warehouse will increase the risk of human error or errors in taking goods, packing, and shipping goods. One way that companies can do this is to select candidates for warehouse staff who are competent in their fields.

You can quickly solve the eight problems above to manage the stock of goods in the warehouse. Also, make sure you have used a recording system appropriate to the scale and needs of your business. A good plan will be an asset to your company because it can secure stock and profit.

How to Solve Frequent Problems in the Warehouse

8 Warehouse Management Problems That Often Occur and Their Solutions

Problems that occur in the warehouse can hamper the activities of the warehousing system and have an impact on losses in a business. Therefore, it is crucial to know the right way to solve problems that often occur in warehouses. Here are some ways that you can apply to overcome issues that arise in the warehouse, including:

1. Timely in Reordering Inventory

One of the right ways to overcome warehousing problems is to pay attention to the schedule for restocking inventories and inventories. Do not let the process of entering and leaving goods from the warehouse late and not according to the scheduled time. 

If this happens, there will be a build-up of goods or vacancies that impact sales and the smooth running of the business.

Therefore, it is essential to pay attention to the time and schedule for each warehousing activity. One way that can do this is to use a digital system. A digital strategy will make it easier for warehouse staff to manage incoming and outgoing goods on time.

In addition, the digital system will also help to shorten the time in the warehouse management process so that the ordering and inventory process can run smoothly.

2. Making a List and Stock Information

Making a list and stock information can be a solution when problems arise in packing and storing goods. This way also prevents the occurrence of discrepancies in the calculation of stock items. It helps warehouse staff pick up goods or track every item entering or leaving the warehouse. 

3. Maintain Tidiness of the Storage of Goods

A neat and organized storage area will undoubtedly make the tracking and retrieval of goods run more efficiently. It can also shorten the time and improve the performance of warehouse staff.

The way to maintain the neatness of the stock storage area is to place the most sold items on easily accessible shelves.

The goal is that the packaging and distribution of goods can run smoothly.

4. Performing Stock Calculations Periodically

Calculating stock items or stocktaking can prevent errors in calculations and record differences that impact the stock of goods in the warehouse. Therefore, it is crucial to carry out stock calculations and record goods regularly to run smoothly for management and all warehousing activities.

5. Labeling Each Existing Container

Labeling each existing container can help maintain the neatness of the warehouse storage area. Can place labels according to the container or according to the category of each item to reduce displacement of objects and avoid mixed items with other things.

6. Using Containers or Containers to Put Goods

Using containers to put goods can also keep the warehouse neat. And it will make it easier for warehouse staff to carry out the process of picking up goods so that warehousing activities can run well.

7. Using Digital Systems in Managing Stock of Goods

One of the last and most effective ways to overcome all warehouse problems is to start switching to using digital systems to manage all warehousing activities.

Moreover, in today's era, technology systems are becoming increasingly sophisticated. They can manage warehouse management activities easily and automatically without manually managing them.

You can take advantage of a digital warehousing system or Warehouse Management System (WMS) offered by many vendors.

Those are 8 Warehouse Management Problems That Often Occur and Their Solutions. Hopefully, this information is valuable for you.

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