Table of Contents
5 Key Challenges in Warehouse Management Systems
Introduction
Managing warehouse operations is a critical task in the supply chain. It involves organizing inventory and maintaining stock for smooth forward and reverse logistics. Warehouse activities are carried out through mechanized processes, with operations supervised by warehouse managers leading professional teams. However, manual labor can be prone to errors due to the repetitive tasks involved and a lack of accuracy. These errors can slow down warehouse productivity and lead to poor inventory management.
Brands use warehouse management systems and automated solutions to make warehouse operations more efficient and track inventory with greater precision. While these systems are problem-solvers for businesses, they also come with common warehouse management challenges. Based on reports, the global WMS market size will expand from $4.0 billion in 2024 to $8.6 billion by 2029. This shows more businesses adapting WMS in the future. Here are the common warehouse management problems that cling to you when working with warehouse management systems.
What is a Warehouse Management System?
A warehouse management system (WMS) oversees warehouse processes and tasks within the warehouse or a storage facility. It keeps track of stored goods, maintains transparency in the procurement process, and offers supply chain visibility. More importantly, it helps meet customer expectations for accurate order fulfillment through efficient inventory management.
A WMS ensures that the stored items are in the right place, monitors inventory data to avoid stockpiling, and improves overall operational efficiency. You can reduce costs by replacing a significant manual workforce. Warehouse management systems have unique offerings from which businesses can make an ideal choice based on their needs.
Common Challenges While Using a Warehouse Management System
Despite the convenience and efficiency of a WMS, some hurdles still remain and impact your growth. Here are some common warehouse management challenges that brands face while using distribution center software.
1. Inability to Manage High-volume Orders
Businesses depend on a WMS to level up their supply chain processes. Some of these include picking, packing, organizing, and storing items optimally. Inventory control and setting up inventory checking processes are critical for timely processing and order fulfillment.
However, some warehouse management software cannot manage high-volume orders, particularly during peak seasonal demand. They often show miscalculations due to a lack of barcode technology and a lack of specialized storage solutions like pallet flow rack systems. Additionally, in the absence of proper automated systems and accurate algorithms, a WMS may mismanage inventory data leading to stockouts or returns.
The inability to manage large order volumes can lead to poor supply chain management and reduced customer satisfaction. It can disrupt warehouse space organization, delay warehouse staff in their picking tasks, and affect delivery times in the long run.
2. Adapting to Technological Advancements
Incompatibility with new and upcoming technology may also be a weak suit for some warehouse management software. It is a crucial factor that defines its flexibility and ease of use. However, business owners often face situations when a WMS is incompatible with Order Management System, Application Programming Interface, or Enterprise Resource Planning solutions. This can hinder overall supply chain efficiency and lack of WMS upgrades.
If a WMS is non-adaptive to robotics, AI, and IoT, it can put the brand at a competitive disadvantage. Outdated software can prevent eCommerce companies from fully utilizing automated storage and retrieval systems and vertical space. It also complicates integration with inventory management systems, worsening issues in receiving, putaway processes, and increasing labor costs.
3. Environmental Sustainability Challenges
More businesses are shifting to environment-friendly approaches and measures in their logistics. However, sustainability remains a challenge for many warehouses due to high capital investments and the integration of sustainable technologies. Small businesses also struggle to afford eco-friendly warehouse equipment because of high costs.
However, using energy-efficient equipment and automation solutions to reduce waste offers long-term benefits. Additionally, building storage shelves from sustainable materials and optimizing warehouse layouts for natural lighting can be implemented more easily.
4. Inability to Manage Hazardous Goods
Hazardous goods management is like trying to catch the wind in your hands. However, brands consider this kind of material handling when they have to fulfill customer needs. In warehouse operations, they face several challenges in handling dangerous materials like inflammable or fragile substances. Warehouse staff can face challenges with safety and storage requirements. The inexperience in handling such materials leads to regulatory fines, environmental harm, and accidents.
For example, warehouses that store chemicals are one of the riskiest distribution points, requiring prior experience and legal prerequisites that only robust warehouse management systems may have.
5. Inefficiencies in Reverse Logistics Management
A WMS solution eases both forward and reverse logistics, especially with managing inventory, optimizing manual processes, and maintaining accurate records. However, returns processes may be additionally challenging for several brands since it requires overall supply chain efficiency.
Returns management includes quality checks, product inspections, restocking, and repackaging of products. A feature-rich software can process returns more efficiently. However, a WMS that fails to automate the returns process can lead to warehouse problems such as inventory congestion, slowing down returns processing, and hampering the business’s reputation.
6. Complexities in Omnichannel Management
Omnichannel management or managing multiple channels is another key aspect that merchants should look for in a WMS. These channels can include, third-party marketplaces, in-store or online applications, and their prerequisites that often differ according to customer preference.
Managing several channels at the same time and offering visibility in warehouse operations is not easy. This is especially true when it comes to inventory tracking, order fulfillment, and meeting customer demand. Brands use WMS with a centralized platform for visibility across several channels and predictive analytics to forecast demand and store inventory efficiently.
Revamp Your Logistics Operations with ClickPost Automation
With ClickPost, brands can achieve overall operational efficiency and provide immense customer satisfaction. Its software solutions have delivery management, order creation, reverse logistics, and inventory control. You can integrate the ClickPost software into WMS, OMS, and ERPs. Also, it seamlessly connects with eCommerce platforms like Shopify and WooCommerce.
ClickPost offers several APIs for merchants to streamline their supply chain operations and track inventory. These offerings include Recommendation API, EDD API, Shipment Tracking API, Order Cancellation API, Pincode and Carrier Serviceability API, and several others. Plus, businesses can choose from 450+ carriers and go live with any of them in 24 hours. To learn more about ClickPost, you can visit their website or contact the team.
Bottom Line
Warehouse software is a crucial management tool that digitizes tasks in a warehouse and offers customer satisfaction. It allows supervisors to monitor operations and overcome warehouse challenges, increasing supply chain visibility. In this article, we’ve listed the most common challenges that merchants come across while operating with an intricate software solution in those storage spaces.
These six warehouse management challenges can slow down business operations in the long run. By overlooking them, one can lose time and money. Hence, businesses looking to manage their inventory and get tighter warehouse staff can choose from the advanced options that can overcome these challenges and offer the ultimate solutions.