Do these warehouse management challenges sound familiar?
- Poorly planned layout
- Fuzzy visibility into inventory
- Inefficient use of space
- Manual, paper-based processes
- Inefficient picking processes
- Juggling omnichannel order management
- Misaligned compensation
These are common issues facing many distributors in good years and bad.
But now, layered on top of that: skyrocketing labor costs, a persistent labor shortage, growing expectations for immediate fulfillment and shipment of orders, and unprecedented supply chain issues resulting in unpredictable deliveries.
We recently surveyed distributors about how they currently manage warehouse operations – and what their plans are given these realities.
The results could be summed in one phrase: There’s room for improvement. Here’s a preview:
- Two-thirds are satisfied with their investments in warehouse technology – but the technology does not “come close to meeting our expectations.” Just 20% were very satisfied.
- More than 50% say that space is tight, or that a lack of space is hampering their operations.
- Nearly a third said they have a “moderate” amount of wasted space.
- Manual operations are still common, leaving room for leveraging technology to improve accuracy and productivity.
One of distributors’ biggest challenges right now is finding staff to support warehouse operations. Given that, how can technology help?
Despite their warehouses being a core part of their operations, most in the survey were not currently leveraging or planning to implement technologies like RFID scanning, drones and voice-picking systems. This is despite their potential for addressing many of the challenges distributors face today.
We’ll dive deeper into the topic of optimizing your warehouse operations in our upcoming webinar, featuring Jon and Matt Schreibfeder.
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Jonathan Bein, Ph.D. is Managing Partner at Distribution Strategy Group. He’s
developed customer-facing analytics approaches for customer segmentation,
customer lifecycle management, positioning and messaging, pricing and channel strategy for distributors that want to align their sales and marketing resources with how their customers want to shop and buy. If you’re ready to drive real ROI, reach out to Jonathan today at
jbein@distributionstrategy.com.