Top Five Warehouse Optimization Problems and How to Solve Them Effectively

Warehouses today are expected to move products quickly and accurately. An automated warehouse system optimizes fulfillment processes, decreasing time and increasing profits. 

Optimization With an Automated Warehouse System

Once you decide to optimize your warehouse, it’s essential to know how to solve key challenges that will likely occur, such as inaccurate inventory, poor space utilization, and inefficient manual processes. When these issues are resolved, you can benefit from the maximum efficiency of your warehouse. An automated warehouse management software (WMS) system allows you to fix these common warehouse management problems.

Why you should optimize your warehouse

An optimized warehouse allows you to make the most efficient use of your space, labor, and equipment. The best optimization practices set your warehouse up to get orders out accurately, quickly, and inexpensively. You can boost your productivity levels by implementing an automated warehouse system, allowing you to grow rapidly and efficiently.

Increasing longevity through continuous optimization improvement

Continuous optimization improvement is the best strategy to increase the longevity and sustainability of your operation. Many facilities struggle to optimize their fulfillment practices, going through many different techniques and tools to find them ineffective. However, there’s a solution that will make continuous optimization efficient and straightforward. An automated warehouse system will continuously improve your practice by finding effective ways to save space, reduce wear on equipment, and boost your profits.

5 most common warehouse management and optimization problems

Today’s warehouse operations are more complex than ever with the increased demand for quick and accurate order fulfillment. Many facilities that still rely on manual management struggle to meet customer demands. If you want to keep up with today’s market, an automated warehouse system will be an essential addition to your processes. By automating your warehouse, you will be able to fulfill orders in less time and with higher levels of accuracy, meaning that your customer satisfaction level will significantly increase.

Automated processes can eliminate these common management and optimization issues:

  1. Inventory inaccuracy. 

Inaccurate inventory leads to issues with maintaining proper stock levels and mitigating buildups of unused inventory. Incorrect stock information leads to low productivity, increased costs, and lost revenue. Implementing warehouse inventory software means that you won’t order too much of an item or run out before your next shipment. If you want to fix your accuracy-related issues, warehouse inventory software is the best solution. The software provides real-time information about stock levels and inventory composition. 

  1. Manual inventory locating. 

Manual inventory locating wastes time, increases labor costs, and can lead to inaccurate inventory. Typically, employees handle an item several times due to the inefficiency of manual inventory locating. To fix this, you should implement an automated picking system and warehouse inventory software into your practice. You can find the best warehouse picking and software solutions here: An automated warehouse system will quickly scale to your operation as it grows and continuously improve your inventory locating method through features such as picking routes, inventory data, and barcode scanning. 

  1. Poor space utilization and warehouse layout. 

Efficient use of space makes or breaks a warehouse operation. Facilities with poor space utilization and layout commonly face a decrease in profits. This issue can be easily fixed by using a fully automated picking system and optimized inventory racking. If you are limited on space, the best solution is to move your inventory upwards by increasing the height of your racks. You can then implement a picking system to access the higher materials.

  1. Repeated redundant processes.

Warehouse employees typically handle an item multiple times when manual processes are used. A common example of this is when workers pass the same ticket to various other employees. These redundant processes are time-consuming and will significantly increase your labor expenses. An automated warehouse system such as barcode technology will remove these processes while optimizing resource utilization. 

  1. Inefficient picking strategy and processes. 

Picking is the cause of many warehouse issues because of mistakes made when receiving and putting away materials. Picking can easily cause inaccurate inventory because its tasks and decisions are completed in a hurry to satisfy the customer. Picking automation minimizes these common problems by tracking data, managing inventory, and standardizing processes. Automation ensures that you can maximize your units picked per hour while maintaining accuracy.

Final thoughts

Why is warehouse automation key to solving most management and optimization issues?

When you switch to an automated warehouse system, it will continuously optimize your warehouse as the technology scales your operation and practices. Additionally, a management system keeps you informed about changes and issues that need to be addressed so you can stay on top of any problems in your facility. Through automation, your operational productivity will significantly increase through accurately tracked and optimally completed processes. 

Benefits of automating your warehouse include:

  • Improved space utilization
  • Boosted productivity levels
  • Efficient material processing
  • Optimal picking processes
  • Safer operations
  • Decreased costs

An automated warehouse system can fix most management and optimization issues such as redundant processes, an unorganized layout, high labor costs, and inaccurate inventory data. Ultimately, leading to an optimized facility that will skyrocket your profits, ensuring that you will quickly make a high return on investment. 

How will improving automation in different warehouse operations help you to benefit from maximum efficiency?

Each warehouse automation tool has a different use that can help you improve your practices in all areas of your facility. Automation is an end-to-end solution that will fully optimize all of your warehouse’s resources. However, the key to maximizing each tool’s efficiency is to help them work together. A facility with all of its automation systems synthesized effectively utilizes all its assets while continuously optimizing its processes. 

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.