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Warehouse Management: 4 Ways Your Warehouse Is Wasting Money

How To Improve Warehouse Management: 4 Ways Your Warehouse Is Wasting Money

  1. Using paper-based tracking systems instead of barcodes
  2. Hand keying data in multiple databases or business systems
  3. Not using inventory control software
  4. Picking, packing or replenishing one task at a time


Warehouses are key components in the global supply chain. They clear the way for the movement of goods and products around the world. As such, warehouse management is key.

Outdated practices increase warehouse costs and can negatively effect productivity. As a result, this creates conditions which lead to a high cost to the bottom line.

Warehousing is an industry filled with razor-thin margins and expectations of expedient delivery. So, they must identify and end bottlenecks that raise the cost of production.

So, how can you improve warehouse management? Here are four ways your warehouse processes are wasting money.

Using paper-based tracking systems instead of barcodes

Inventory management the old-fashioned way is a hard habit to quit. Using pen and paper to carry out the business of a warehouse is a familiar process that almost anyone can do. Unfortunately, paper-based tracking systems leave serious room for error. Also, these practices make it impossible to account for inventory in real-time.

Barcode scanning technology removes guesswork and inaccuracy from the equation. With it, warehouses can scan items as they arrive and leave.

How do you make lost inventory becomes a costly relic of the past? Save money by ensuring your warehouse is tracking inventory with transparency and accountability.

Hand keying data in multiple databases or business systems

Warehouses often rely on more than one piece of software to coordinate activity. For example, everything from Excel spreadsheets to homegrown systems hold key data. As such, keeping information in sync is crucial for effective warehouse management.

But, many warehouses continue to run systems that don’t integrate to one another. As a result, manual data entry must happen across many separate platforms. While pen and paper can create inaccuracies, hand-keyed data adds even more uncertainty.

Business system integration reduces costs. It creates a single system of record, ending costly data errors. Also, it puts real-time data at your fingertips through dashboard views.

This allows managers to take action on key information while it still matters. Thus, achieving continuous improvement.

Not using inventory control software

Arranging inventory in a warehouse may seem like a straightforward process. But even a seemingly organized warehouse might not be operating at peak efficiency.

Inventory control software allows warehouses to maximize their productivity and increase accuracy. Armed with barcodes and scanners, software provides real-time data and creates efficient processes.

Picking, packing or replenishing one task at a time

Fulfilling orders is one of a warehouse’s most fundamental tasks. Also, it’s an area where expensive inefficiencies can creep in.

Every second counts when picking, sorting, and preparing items for shipment. The more time spent on each task, the longer a customer is stuck waiting. Not to mention the cost of inaccurate shipments in returns and re-ships.

The workflow of picking, packing, and replenishing often seen as separate tasks. Labor costs through deadheading, wait and wasted labor time. Instead, task management software combines these tasks into a logical sequence. This results in labor savings, as well as faster, more accurate order processing.

Taking action to prevent these wasteful warehouse practices leads to a more efficient and cost-effective warehouse. The first step is to upgrade your warehouse operations using software. Can you afford not to?

A complete warehouse management system (WMS) is one option. Another is scalable warehouse solutions from Radley Corporation. Contact a Radley product specialist today to learn more about how to improve warehouse management.



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