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Overcoming Warehouse Management Challenges

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Top Warehouse Management Challenges - Warehouse Employee
Steve Thompson
Steve Thompson
April 8, 2022

The four main components that define modern warehouse management challenges are integration, operations, purchasing, and distribution. Brands with exceptional logistics tend to outperform competitors. Success in today's warehousing climate begins with the right technology and staffing.

Common Warehouse Management Challenges

Employee trying to organize a box

Some of the most common warehousing challenges today include streamlining warehouse operations to be more agile, scalable, and sustainable. Historically, one of the biggest problems facing warehouse managers was poor inventory organization. Inaccurate inventory counts can trigger a multitude of messy mistakes.

Digital technology can resolve warehouse issues. Automated systems can overcome inventory inaccuracies and worker fatigue from redundant tasks. Insufficient inventory information can lead to higher costs, wrong orders, and lower productivity. Reduced productivity and increased waste cut into profit margins and generate less revenue.

Choosing The Right Warehouse Management Software

The best way for any type of business to save time and money is to invest in digital technology. Without a modern database and computer networking, it's challenging to keep pace with competitors that invest in advanced technology such as AI and automation.

The warehouse management system you choose needs to meet your company's management challenges while streamlining your operation.

Innovative inventory management software reduces warehousing errors and low-demand issues that result in obsolete inventory. Your platform should integrate well with IoT technology so that you can collect data in real-time to make operational adjustments. Furthermore, the system should integrate with barcode technology so that you can locate any item in your inventory instantly. This automation tool utilizes RFID technology to find specific units and reduces redundant and time-consuming manual labor.

Labor Issues

Empty warehouse

In recent years, two major warehousing labor issues are labor costs and labor shortages. Automation provides solutions to both problems. Warehouse management software can help you schedule employees and send electronic notifications. But a warehouse should not rely on just technology. You still need to invest in knowledgeable talent contributing to your firm's productivity.

You should balance labor costs with concern for the well-being of your employees. If you don't pay workers a competitive wage, they'll be investing time in finding other work rather than helping you achieve your company's goals. It's better to have a thankful and upbeat workforce than one that's dissolving into negativity and burnout.

Smooth Order Processing and Fulfillment

The order management process includes entry, picking, packing, shipping, and returns. Accurate order processing and fulfillment are essential keys to customer satisfaction, which is a victory for logistics teams. Many logistics errors are associated with inaccurate order-taking, such as data entry mistakes or miscommunication by a sales representative.

Orders from your eCommerce website or other outlets can be processed accurately and rapidly with an automated system. Humans are still involved in the order management process, which means errors are always possible but can be limited with sufficient training.

Picking Process

Most warehousing problems originate with the picking process and relate to personnel receiving or storing items improperly. Inaccurate picking may create inventory confusion, slow down the picking process and lead to wasteful deliveries resulting in customer dissatisfaction. You can improve your operation by reviewing warehouse picking best practices.

Maximizing Vertical Space

Another big challenge involves warehouse layout, which might not be set up to allow for fast loading and unloading. Once again, digital technology can help you plan out a more efficient warehouse layout that maximizes floor space and vertical space. It will help create additional warehouse space to manage stock levels. It's common for warehouses to have plenty of unused open space toward the ceiling.

The layout relates closely to warehouse performance and output. You can make work easier for your team and facilitate greater productivity with an optimized configuration. Arranging and rearranging products when adjustments are needed will be more seamless.

Storage Strategies

One of the emerging storage strategies for warehouses to save space is cross-docking, which means shipping products directly from the manufacturer to the customer. Manufacturing products on-demand fits this model. Another space-saving technique is dynamic slotting, in which high-demand products are moved to a particular location in the warehouse, separated from low-demand items.

Dealing With Volatile Demand

Due to supply chain disruptions and economic uncertainties, frequent changes in customer demand due to supply chain disruptions can easily throw off demand projections made by warehouse analysts. If you order too little, it causes supply shortages and lost opportunities. On the other hand, ordering too much leads to surpluses that take up valuable space without meeting sales expectations. Warehouse management software that uses machine learning can help improve company forecasts.

Improving Quality Control

Warehouse workers doing quality control

Many warehouses employ people who wear many hats, such as picking, packing, and shipping, with quality control responsibilities mixed in. But diminishing returns are possible if workers are excellent at everything except quality control. Trying to do more work with fewer people is best performed by computers. Humans can do better than computers in evaluating the quality of a product.

The advent of IoT sensors and AI technology is reshaping the nature of warehousing in general. At some point, robots may become better judges of physical products than humans. For now, you should maximize your team's analytical abilities and emphasize quality control as a priority.


Digital technology and skilled personnel help overcome current warehouse management challenges. Manual processing can be a time-consuming process that is better replaced by automation. Selecting the right people and technology will steer your warehouse more efficiently. Find out how choosing the appropriate pallets adds to the sustainability of your warehouse.