Signs of Inefficiency in Warehouse Operations

A warehouse should operate like a well-oiled machine.. Even in times of high product demands, such as the upcoming holiday season, a warehouse should still function with maximum efficiency. Source of inefficiency in a warehouse aren't always easy to detect, but their side effects are. Let's take a look at some indicators to look for in warehouse operations.

Returns from Order Errors

If orders are constantly being sent back for errors, that's a sign of inefficiency in warehouse operations. Errors are going to happen from time to time, but they shouldn't be the same errors over and over again. This creates more work in the long run because you have to redo a task that has already been completed. Sometimes the error is from lagging inventory management systems, and other times it's from mislabeling or miscommunication. Whatever the case may be, it's important to take care of this issue as soon as you notice it.

Increased Labor Costs

Increased labor costs indicate that workers are having to stay longer to complete their tasks. There is some sort of inefficiency in the warehouse operations that would cause that. Of course, it's also possible that workers are trying to stay on the clock longer so they can get paid more. The managers within the warehouse should monitor that and prevent employees from abusing the system. If the laborers are genuinely staying to complete their work though, you need to figure out why the work is taking longer than it should.

Missing Inventory

Unfortunately, theft can happen in a warehouse. There should be security procedures in place to prevent that, but even the most secure facilities may see products go missing from time to time. This creates an issue with inventory levels because the computer thinks there are more products available than their actually are.

Correcting inventory shrinkage isn't easy, but the best thing to do is cross-check inventory data. If there are consistent discrepancies in a certain area, you may need new security measures to prevent theft or damage.

Extra Footsteps

Warehouse workers spend a lot of time just walking around the building. Every extra step they take is another step aware from the core warehouse operations. Mobile workstations can drastically reduce the number of steps taken and help workers get through their jobs much faster. Re-organizing inventory may also help with this issue because product demands change seasonally. Move items around so they can be accessed when they are most needed, and employees will have less work to do for each task.

Watch for signs of inefficiency in warehouse operations and address them as they arise. This is the best way to keep workers, clients and customers happy all at once.

For more information about warehousing, Contact Overflo at 1-800-626-0616

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