In the global economy, customers expect that companies will have everything they need to process an order and deliver it as quickly as possible. This presumption requires businesses to stay on top of their inventory needs despite space limitations in the warehouse or supply chain complexities. Keeping a robust inventory can help companies to remain competitive, but not every organization knows how to do it effectively. These challenges of product warehousing have solutions that businesses can implement to reduce costs and improve operations.
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Ineffective Inventory Management
Businesses need to know their inventory at a glance, with the ability to verify the accuracy of inventory counts. Many companies still rely on workers to handle inventory, which can create a number of problems. Employees are more likely to make mistakes when counting, and they may also fail to follow guidelines for inventory management. With little oversight and a significant burden on overworked employees, businesses may lose inventory due to theft or problematic stock. Implementing current practices for inventory management can cut down on the time spent handling inventory, which can speed order processing and fulfillment.
Space Limitations
Rising rents for warehouse space leave many businesses wondering how best to optimize inventory for the space. Companies that kept larger warehouses in the past may be running on smaller margins, which calls for finding room in the budget wherever possible. Space optimization can greatly increase a business’s ability to keep a just-in-time inventory that allows room for manufacturing and other functions. Without it, companies may find that they are constantly struggling to get the inventory they need to fill ongoing order requirements.
Supply Chain Disruption
Manufacturers, resellers and retailers rely on a supply chain that may face regular disruptions, depending on the region and the industry. Supply chain complications can lead to lost revenue, delays in production and a general drop in brand perception for the company. These problems come from a variety of sources, such as climate change, natural disasters or economic instability. Despite these obvious issues, nearly half of supply chain professionals still rely on spreadsheets to handle their supply needs. A dynamic supply chain management system can identify potential disruptions and generate alternatives that companies can use to keep running the business and filling orders.
Global Competition
With an increasingly online economy, businesses face more competition than they might have had to deal with before. Competing organizations must vie for limited access to supplies, contractors, equipment and customers. Global competition forces companies to increase efficiency and often cut their profit margins in order to survive. Businesses must be ready to adapt to changes in demand, supply chain or regulations, or else they will not be able to maintain a client base. In this environment, the company with the tightest system for supply chain and inventory management may be the one that comes out on top.
Outdated Systems
Many industries resist innovation, largely because it costs money to implement and optimize new tools. This hesitation leaves many companies using outdated systems that waste time and require more effort than necessary. For businesses that need to run with fewer employees and operational inefficiencies, system upgrades are crucial. Cloud-based systems simplify the work of ordering custom packaging equipmentprocessing a purchase or managing inventory. Most of the latest systems are designed to integrate with other tools so that businesses can have order processing, inventory management, logistics and financial services all working seamlessly together.
International Trade Complications
A global economy does not always lead to seamless trade between nations. Although many companies consider international engagement to be a major goal for the success of the organization, it can create additional complications. Days of delays at customs can cause businesses to lose vulnerable inventory or risk ruining customer relationships. Disruption of the supply chain for rare materials in a particular region could lead to delays in manufacturing and fulfillment worldwide. Companies can minimize risk by optimizing their supply chains and staying abreast of changes in trade regulations.
Operating a business that can handle the needs of a global customer base calls for careful planning at every stage. By considering these common challenges to product warehousing, companies can ensure that they have the goods they need to meet customer demand even when complications arise.
Author bio
Keith Jalichandra is a member of the Sales Support Team at PMI KYOTO Packaging Systems, a leading packaging machine manufacturer. He is also in charge of designing the graphic and online marketing and serves as a bilingual contact who extensively communicates with headquarters on behalf of the company’s sales team.
