With supply chain management, there are always some issues that are hurting the bottom line. In other words, problems that are starting in the warehouses that are causing the supply chain management delays and problems in the long run. If you are able to make sure that you know what these challenges are, then it will be a lot easier to make sure that you are able to handle these issues and to even make sure that these issues won’t be a problem anymore. These are some of the most common supply chain management issues that hurt the bottom line.
When inventory isn’t visible
When inventory isn’t visible, you will not know how much stock you have available for each product. You will not know if you need to order more stock before you are completely run out of stock.
This is normally chaos when a warehouse isn’t packed correctly, and if all the stock isn’t visible. Then, you might not be able to deliver quality service and you will not be able to order new stock in time.
Poor warehouse layout
Another serious problem that can affect the service delivery and supply chain management, is when the warehouse is poorly laid out. Meaning that everything is a mess, and not packed orderly and neatly.
It is essential for the success of the warehouse that you are going to plan the warehouse layout carefully and that you are making sure that you are going to have a practical layout with everything in order. With serial numbers visible. Then, it will be easier to find a product and to take stock of the goods within the warehouse.
Outdated equipment
Even at a warehouse where there are such a large number of goods, you need to take stock of everything. And, it can be chaos, if you are still forcing your workers to use outdated equipment. Equipment that isn’t working anymore and that is causing a lot of problems.
It is always important to make sure that you are staying up to date with the latest equipment to use in a warehouse. This is just making the productivity of the workers a lot better.
Still using old technology
This is basically the same as the previous point. When a warehouse is still using old technology, it is delaying the whole running process of the warehouse. It doesn’t matter if you are tracing a product, or if you are doing stocktaking of everything in the warehouse.
The latest supply chain information technologies are making it easier to find and to run a warehouse on a daily basis. And, it is making the workers more productive and makes their work a bit easier.
Unexperienced warehouse workers
Unexperienced warehouse workers can also hurt the bottom line. They need to know how to use the equipment, how to keep the warehouse neat and tidy. And, how to do stock-take of such a large number of products.
The moment that they are only using cheap labor, there is always the risk to hurt the bottom line. To let workers make mistakes and to ensure that workers aren’t doing everything correctly.
There are many Supply Chain Management Issues That Hurt the Bottom Line if a warehouse isn’t run correctly and accurately. This is why you should make sure that if you are managing a warehouse, that you are always considering these points. Then, you will never have a problem with warehouses that aren’t run correctly, and that is losing money more than what it is gaining profit.
And, this can mean a lot of losses for the warehouse and the businesses that are using the warehouse. All reputable freight forwarding and third party logistics companies such as BCR Australia, offer a full range of supply chain services to help you manage and distribute your inventory more effectively.
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