Challenges for Warehouse Managers

There is a lot of pressure on warehouse manager which comes from many different directions in terms of efficiency, sustainability, capacity, availability etc. These include both internal and external pressures. Some of the pressures and challenges to be faced by a warehouse manager are,

Pressure to reduce operating costs: Warehouse managers are pressurized to decrease the costs to survive the competition in the industry. This has resulted in companies evaluating outsourcing options and their own logistics operations

Achieving the perfect order: One of the recent key performance indicator (KPI) introduced into the supply chain is the perfect order metric. A perfect order is deemed to be one that has been delivered on time, in full, in perfect condition and accompanied with the correct paperwork. Thus, one of the major challenges of the manager is to achieve the perfect order.

Smaller more frequent order: Overstocking or under stocking, both can be dangerous, thus it is important to make frequent small orders as when the inventory is required so as to decrease wastage and costs. Just-in-time (JIT) concept works best these days for replenishing inventory.

Labor cost and availability: Working in a warehouse may not seem that glamorous yet it is the work of the manager to attract staff. Therefore a warehouse manager must find ways to get hold of the staff which may be done by providing healthy working conditions and flexible working hours.

Environment issues: Some of the environmental issues are energy consumption, affecting items such as lighting, mechanical handling equipment and heating. Other issue is waste material handling which includes stretch wrap, cardboard, tape and pallets, these needs to be closely controlled and where cost effective, should be recycled, reused and turned into energy.

Data and information transfer: These days supply chain produces a vast amount of data and it is up to the warehouse manager among others to analyze this data and use it effectively.