Does your warehouse commit any of my 7 sins?
As a warehouse systems consultant there is nothing better than visiting a new warehouse and in my experience I have noticed there are 7 deadly sins, which all cost businesses money and are very simple to fix with the implementation of barcodes and a warehouse management system.
1. Low stock location accuracy
Typically 25% of picks staff are looking for the stock, however with the implementation of a warehouse management system the aim is to get the location of stock picked better than 99% finding and picking first time every time.
2. Regular stock takes
Businesses only need to conduct stock takes to correct errors because they are unsure of their stock levels, therefore the aim in to run perpetual stock taking.
3. Stock in the aisle of your store or warehouse
Often means the warehouse has a problem as the stock can’t be reached and can become a hazard. Stock may also need to be moved multiple times to reach various products, This makes picking errors easier to make as the wrong batch or product can easily be picked. It becomes easily confused and staff may not know if the stock is coming in, going out part of a consignment and your accounts software may not be aware of it.
4. High number of ‘stock adjustments’
Stock adjustments are usually only made to correct errors.
5. A number of miss-pickings and shipments
This often happens when all the stock looks the same or the product codes are very similar, businesses that suffer from this often have a high number of returns or credit notes. This can impact customer satisfaction and be very costly.
6. Lack of confidence in reports
No one in the business trusts the figures in the Sage system and does not know what is in stock without checking in the warehouse. This causes huge problems in today’s online ordering world!
7. Time delay in reports or lack of visibility
This can be caused by pieces of paper waiting for details to be uploaded; this upload if the paper is damaged, lost or illegible can cause errors as well as delays in updating records, therefore your accounts software transactions are always behind the product movement. This means the current status of products is often unknown – is it on the shelf, been picked, being packed, on a lorry or even with the customer?!
If your warehouse suffers from any of these read my article on ‘Why install a warehouse management system’ to see how you can resolve the warehousing sins and optimised the areas you require including the integration into your accounting software. For example Datalinx Computer Systems specialise in warehouse management solutions the integrated into various sage systems.