Common Issues In Warehousing And How to Solve Them

Feb 27, 2023Uncategorized

In today’s fast-paced society, the last thing anyone wants to deal with is a problem. Thus, proper warehouse management is crucial when it comes to creating a productive and efficient environment. As leaders in the industry, it is important to predict and understand the most common problems and the ways in which to combat them. Here we have outlined some of the top issues most warehouse managers face and the best practices to alleviate them.

Inaccurate Inventory

Nothing is more painful than realizing deep into your monthly reports that your inventory is incorrect. The realization that, suddenly, all your data may be wrong is definitely a blow to the chest. Let’s face it, manual processing of inventory is faulty as it can lead to improper stock information, the buildup of obsolete inventory, and individuals wasting precious time in physical checks and error correction. To fight this, we recommend investing in a comprehensive inventory management software because modern software has solutions that will rectify the issues caused by human error.

Inefficient Space Utilzation

Although it may not seem obvious, inefficient space utilization is one of the biggest challenges the warehousing industry faces today. Poorly configured warehouse spaces can cause problems such as unnecessary labor costs and incorrect inventory. With an optimized warehouse layout, managers can fully utilize their floor and vertical space to better house their products. But what happens when you’ve reorganized and cleaned your space, but you still do not have enough room? We recommend partnering with a 3PL warehousing specialist to assist with securing flex storage space.

High Labor Costs

Since the pandemic, labor shortages have impacted overall labor costs throughout many industries. Studies show that labor costs make up nearly 65% of the total warehouse budget. That is too big of a slice of pie for it not to be able to fit on your plate. In order to get the most out of your labor cost, we suggest the following.

  • Hiring Competent Employees: Take the necessary time and steps to find the right fit for your organization. If possible, have promising candidates participate in pre-trial interviews where they are tested on the skills they’ll need to perform the job.
  • Implement Training: Thorough training during and after onboarding allows for standards of operations to always be met. 
  • Provide Incentives: Show your staff that they aren’t just a number. Entice them with meaningful rewards to help boost morale. 
  • Give Feeback: Effective feedback improves the overall work environment and guides team members in the right direction.

Seasonal Demands

Seasonal peaks, economic cycles, and other factors can lead to fluctuations in customer demand for space. Don’t get caught off guard in these situations. It’s important to always be aware of the current market trends in order to be prepared to manage changes in your stock levels. We recommend always staying in contact with your sources within the industry, be it your manufacturers, distributors, or retailers, and keeping your finger on the pulse of what is happening next.


Challenges are inevitable, but they do not have to be permanent. Preparation is key in order to face them head-on. Constant evaluation and realignment will help alleviate these potential hardships before they get out of hand. When strategizing ways of improving your operation, do not forget that WarehousingIT provides solutions that can solve many of the challenges discussed in this article. Give us a call or send us an email if you’d like an in-depth analysis of how we can assist with all of your warehousing needs.

Author: warehousingit

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