How to Stop Your Warehouse from Plunging Profits
Your business loses money if your products can’t reach the stores in time. This part of the supply chain gains more significance as the holidays draw nearer. The New Zealand Herald reports retail spending spiked to $6 billion in December of the previous year, and Kiwis spent $397 million more last Christmas. Shame if your business were to miss this massive opportunity this year.
When Your Warehouse Goes ‘Bad’
Your warehouse is an integral component of the supply chain. It’s not just an area to drop off, store and distribute goods. When this part of the supply chain management lacks organisation, your customer service and profits will feel the impact.
Here are some warehousing problems your business needs to resolve:
Your warehouse has an inadequate layout
In some instances, a bigger space will not solve a cramped warehouse. Sometimes, a facility simply has a poor layout. When pallet racking systems do not have proper arrangement, your warehouse fails to optimise the space. Perhaps it’s not the arrangement, but rather the wrong type of racking for your goods. Either way, your storage racks are leading to ineffective use of the space.
Other than making sure you have the right pallets, arrange racks and goods according to their need; the highest-selling products should allow for easy access while the least-selling goods can take up space in the least accessible area.
You’re not certain which items sell more, and which sell least
Lack of inventory awareness creates a couple of problems. One, it hampers warehouse operations because employees do not know the location of the goods. Two, it can lead to redundant items and deterioration of the goods. Both will affect customer service due to delays with order fulfillment. They can also affect your bottom line when you spend more on goods you already have, but do not need.
Your warehouse is in a bad location
Location plays a crucial role in implementing efficient operations and reducing inventory errors. If your employees take more time processing orders and accessing goods, you may need to move to a better location.
Think of your warehouse as more than just an area for storing and distributing products. Consider the facility’s layout. Choose the right storage systems. Find a central location. With the right elements for this part of the supply chain, your business will never miss opportunities, all year round.