Increased Warehouse Costs

  • You have high carrying costs.
  • Inventory is inaccurate.
  • Do you order items already in stock?
  • Uncertain how to determine what you purchase.
  • You often do a physical cycle count.
  • You have to shut down the warehouse.
  • It costs.
  • Uncertain where is the delta between actual inventory.
  • The system often says you have something that you don’t .
  • It is difficult to track time.
  • You need to identify specific inventory by lot or serial numbers.
  • You assign your own serial numbers.
  • Manually.
  • It takes much time.
  • It is error prone.
  • Uncertain what happens.
  • You carry inventory past its life cycle/expiration date.
  • Uncertain what are your write offs.
  • You are not ordering the correct items.
  • You cannot determine what to order.
  • Unknown average turn.
  • Uncertain how much does it cost to carry items that don’t move.
  • Uncertain to know what warehouse to have items shipped to.
  • You find you often transfer between warehouses.
  • Unknown costs.
  • The order desk takes orders for items that are out of stock or not enough inventory.
  • Uncertain how often.
  • Uncertain whether they can check across multiple warehouses.
  • Uncertain whether you can ship from alternate locations.
  • Uncertain what is in the warehouse but already committed.
  • Uncertain what is in transit.
  • Uncertain whether partial orders can be filled.
  • Uncertain whether it can be put on back order.
  • You are unable to offer substitutes.
  • Orders are canceled.
  • This causes inventory to remain in stock.
  • The order desk is unaware of promotions or special discounts for customers.
  • This costs your business.
  • This causes you to be overstocked on promotional items.

About the Author: AJ Amjad Khanmohamed

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