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Top Warehouse Management Problems & Solutions

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Warehouse Management Problems & Solutions - Man stressed inside a warehouse
Steve Thompson
Steve Thompson
June 10, 2022

Looking at today's warehouse management problems and solutions can be frustrating for an under-funded warehouse. But for those that can afford to pay for enhancements or get loans, here are some of the most important problems and solutions to think about for upgrading the warehouse environment.

Cluttered Space

Messy warehouse

Problem: When an excessive product comes in while inventory is stagnant, it's difficult for workers to put everything in its proper storage place in a timely manner. Pallets and carts stacked with products end up sitting in aisles, which can block or slow down pickers.

Solution: The use of vertical space can help maximize warehouse capacity, storing items on stacked pallets. The key is to invest in a sufficient amount of pallets, which can be easily moved when necessary. Keep aisles clear while making the warehouse safer for staff and easier to pick items quickly. Another solution to keeping traffic under control and maximizing space efficiency is drop trailer logistics.

Awkward Warehouse Layout

Problem: Even if a warehouse is kept tidy and uncluttered, it may still suffer from a poor warehouse layout. If you don't take into account that the layout should allow for efficient picking, your team will fall behind competitors in terms of productivity and agility.

Solution: Your warehouse should be organized so pickers don't have to walk or drive a forklift far to pick up items. The layout should be designed to save time and provide easy access to inventory, whether you store one type of product or multiple brands with multiple products. The more diverse your inventory is, the more you should divide the warehouse into specific areas where specific products are stored.

Disorganized Workflows Leading to Redundancy

Problem: Redundancy can happen by accident as a result of disorganized workflows. This problem manifests from several different workers handling the same product. Without proper communication, the problem can persist and reduce productivity while increasing wasted time and labor costs.

Solution: It's important to give each team member sufficient training on how to work as efficiently as possible in a fast-paced team environment. The use of barcode technology lets you know instantly the status of a product. Automation features in your warehouse management software can easily resolve various other redundancy problems.

Inventory Management Errors

Man confused with inventory

Problem: Accurate information is critical to warehousing, yet one of the biggest warehouse management problems that persist with firms that haven't invested in digital technology is inaccurate inventory. Slow product picking and lack of orderly order management are other problems that supervisors must prevent.

Solution: You can prevent various management problems in warehouses with the right inventory management system. These days managing warehouse activities best works with a sophistical software platform designed for the logistics industry. Going more digital will help reduce errors in all facets of warehousing, particularly with the adoption of AI and automation.

Unprepared for Seasonal Demand

Problem: Seasonal demands affect stock levels, which warehouse managers know they are responsible for. Failing to project seasonal demands properly or forgetting it matters until the last minute can create serious supply issues. Another problem is fluctuations in demand can lead to wasteful product ordering.

Solution: It's best to network with a seamless supply chain through digital communications and establish good relationships, so you can order supplies when you need them. It also helps to use multiple backup suppliers to overcome sudden shortages. Arranging inventory should take into account seasonal demand so that the most popular items are the easiest to pick.

Labor Costs and Shortages

Problem: Labor is an issue that affects productivity, agility, and costs. When labor becomes unproductive or when it's hard to fill positions, it leads to lost profits. Many people have quit the logistics industry in recent years due to increased pressure.

Solution: Automated systems can reduce both labor costs and shortages. Once you pay for the technology, you won't have to pay robots to do more accurate and productive work. Not all warehouse jobs, however, are resolved by automation, as you still need to be selective about the people you hire for manual tasks. Treating employees as valuable team members can reduce costly turnover and lift team spirit.

Failure to Invest in Digital Transformation

Problem: While many warehouses have adopted warehouse management software, the cloud, and IoT devices to streamline operations, there are still some that resist converting to digital infrastructure. Some of the main reasons for this hesitancy include insufficient funding and lack of knowledge about new technology.

Solution: Saving time is crucial in the warehousing business because the clock is always ticking toward product arrivals that take up more space and require time to move. Locating specific products in the warehouse can be done with barcode technology. Digital transformation is important to stay competitive in a fast-paced industry. It can help you resolve issues in real-time, making it worth the investment.

Poor Quality Control

Woman with a smashed box

Problem: Poor quality control can be the most devastating problem on this list if it's not fixed. When products keep being returned for the same reason and quality control doesn't catch it, profit margins will suffer. Throwing random people in quality control positions is where the problem starts. Individuals who lack the desire to protect the company's reputation and prefer socializing on the job should not be on the quality control team.

Solution: Like most warehouse management problems and solutions, poor quality control can only be improved with decisive management action. It otherwise doesn't just improve by itself. Hiring the right people to oversee quality control is essential since it's not a job you can trust giving to anyone on the team. It requires careful evaluation and critical thinking.


Use this checklist of warehouse management problems and solutions to compare with your warehouse. One way to cut costs and create greater space efficiency is to maximize the use of pallets. Organizing pallets strategically combined with the right personnel and technology will make your operation much more organized and efficient.