Now is the Time to Get Ready for the Next Peak Season
Final numbers aren’t in, but 2020 was a record setting year for shipments. Unfortunately, over 2 million packages did not arrive on time for Christmas, according to the Atlanta Journal. Although peak season brings in a welcome surplus in profits, it also highlights previously overlooked inefficiencies in the warehouse. Missed deliveries cause customer dissatisfaction and more returns resulting in lost profits.
The peak season may be over, but now is the time to start reviewing and updating common warehousing issues that could drain next year’s peak season profitability. By deploying leaner processes managed by real-time distribution software and warehouse execution and control systems, warehouses and distribution centers (DC’s) can realize improved operational efficiencies. These processes can help to streamline order volume and help handle volume growth in and out of peak season.
Seven Warehousing Pitfalls – What You Need to Avoid in 2021
Whether it be inaccurate order fulfillment or wasted labor efforts, inefficient warehousing can cost as much as $100,000 per hour in downtime, $20 per mis-shipped package, and lost client loyalty. While every warehouse faces unique challenges, there are a few warehousing issues every warehouse should avoid:
- Too much inventory — To avoid costly out-of-stock items during the busiest day of the year, many companies choose to overstock to keep up with surprise demands. However, a lack of an organized inventory management system can lead to overcrowding, creating confusing pick paths, wasted space, lost products, and small packing spaces. These ultimately contribute to elevated worker stress and missed or inaccurate orders.
- Unforgiving drop shipping — When shipping on behalf of other businesses such as Amazon or Walmart, shipping rules must be closely followed lest they turn your business away. Errors such as missed delivery dates or wrong shipping labels can lead to millions in lost revenue as companies may reject you and favor your competitors.
- High seasonal labor costs — Seasonal warehouse salaries average near $15 per hour, not accounting for training time, which also may take longer if other inefficiencies are present. Furthermore, as expected with the holidays, seasonal labor costs also include overtime, weekend pay, and holiday pay.
- Missed delivery dates — Labor shortage and lack of inventory transparency result in missed delivery dates as your workforce encounters more obstacles to pick, pack, and ship orders.
- Inadequate picking routes — Longer travel routes and manual data entry both lead to inaccurate orders, which drive up costs with QC time, inventory issues, return fees, and customer dissatisfaction.
- Missing paperwork — Every aspect of your warehouse operation is important, down to tiny labels. Labels that have been printed incorrectly can result in undeliverable packages or the wrong product being delivered to the wrong person, causing headaches for your customer service team, and possibly a dangerous situation depending on the product that was delivered.
- Overwhelmed delivery services — It is estimated that just over 3 billion packages were shipped between Thanksgiving and Christmas. Because every year brings an overwhelming increase in shipped orders, it is important to stay ahead of mailing dates stipulated by your courier service and avoid last-minute shipping at all costs.
If any of these problems sound painfully familiar, Numina Group can help. Our warehouse automation solutions help many of today’s industry-leading companies to increase their business efficiency and profitability. Contact us for an in-depth optimization plan for your operations.