Top 5 Warehouse Management Mistakes Brands Make When Scaling eCommerce Operations

As Henry Ford wisely said, “The only real mistake is the one from which we learn nothing.” This couldn’t be more true in the world of eCommerce. When your brand starts growing, so do the challenges of managing your warehouse. For any successful business, it is imperative to have efficient warehouse management that makes sure products flow smoothly from seller to customer.

But scaling your eCommerce operations isn’t as easy as it sounds. With great growth comes great responsibilities! It’s easy to stumble into operational hurdles that can hurt your profits. So it’s better to stay informed and identify common challenges that a business faces when scaling its operations.

So, let’s discover five major warehouse management mistakes to avoid!

Struggling to Keep Your Warehouse in Check as You Grow? Here Are 5 Mistakes to Avoid!

Whether you’re a growing business or an enterprise player in the market, knowing these mistakes and avoiding these mistakes can save you a ton of time, money, and headaches!

Mistake #1: Neglecting Warehouse Automation

As your business grows, so do your operations, and relying on manual processes can become a major setback. Imagine there is a sale, and you have an influx of orders, but your team is still using archaic methods and silos to manage inventory and every other aspect of your business.

Sounds like a nightmare, right?

How to avoid it: To escape this nightmare, you need to invest in an advanced Warehouse Management System (WMS) that automates repetitive tasks. A solution that comes with features like:

  • Automated Inventory Updates
  • Automated Inventory Sorting
  • Barcode Scanning
  • Automated Replenishment
  • Workflow Automation
  • Dynamic Inventory Slotting
  • Automated Shipping Labels
  • And more!

Mistake #2: Inadequate Inventory and Order Management

Do you also think that managing inventory is like walking a tightrope?

We do too! Maintaining a balanced inventory level is very important – because too much stock can tie up your capital, and too little stock can risk you to stockouts which will lead to missed sales and unhappy customers.

The same goes for order management. When scaling your operations, managing bulk orders can get tricky too. Without a proper order flow, your processes can become complex which leads to more SLA breaches and delays in order fulfillment.

So poor inventory and order management isn’t just a minor hiccup, it’s a major roadblock that can derail your entire eCommerce operation.

How to avoid it: If you want your eCommerce operations to run smoothly, you need to adopt a full-stack tech solution that offers an advanced inventory and order management system. These solutions will ensure that all your inventory levels are updated on multiple sales channels and you gain complete visibility of every order from a single dashboard.

Sounds too good to be true? Well, there isn’t any magic involved, it’s just smart technology that can streamline your business processes. So, invest in the right solution and reap the benefits!

Mistake #3: Poor Warehouse Layout and Space Utilization

Have you ever felt like your warehouse is a maze where even your best employee needs a map to find the right product? Imagine that with a poor layout, you’re scaling your operations and you need more warehouse space.

This will definitely make order picking and shipping a nightmare, leading to an increase in order-to-ship time. So how can you make things right? Let’s understand.

How to avoid it: For more warehouse space, implement a good WMS that can help you keep track of where everything is stored and provide functionalities like:

  • Create zones for different types of products. You can keep your best-selling items in a zone that’s easily accessible. This way, your team can quickly grab the most popular items improving the picking efficiency.
  • You wouldn’t want all your important SKUs scattered randomly across the warehouse, right? Instead, group similar products together on shelves. Map these shelves to specific areas so each shelf holds a category of products. This not only optimizes the warehouse space but also enhances the picker efficiency.
  • Make sure every zone and shelf is clearly labeled. Use large, readable signs that can be seen from a distance. This will cut down on time spent searching for items.

By implementing these functionalities, you’ll see fewer errors and a more productive team. Also, you’ll make the most out of your existing space, possibly delaying the need for expansion and saving operational costs.

Mistake #4: Lack of Integration Between Systems

So, now that your business is booming and you’re scaling up like never before. You now must be juggling across multiple systems. You have your own eCommerce platform, you’re selling across multiple marketplaces, and you’re using a host of other solutions like ERP, WMS, OMS, accounting, CRM, and finance.

But here’s the kicker, if these systems aren’t synced smoothly, you can be in a real challenge. If the flow of data between these systems is not streamlined, you will encounter major hurdles.

How to avoid it: You need seamless e-commerce integration. It is imperative for you to have an integrated ecosystem of growth. Invest in solutions that are designed to work together.

You can also use eCommerce integration tools that can help you bridge gaps between your systems and automate data transfer to cut down on manual errors. By getting your systems in sync, you’ll streamline your operations, boost accuracy, and keep things running smoothly.

Mistake #5: Overlooking Employee Training

Let’s talk about an important but often overlooked part of scaling up: employee training. Your warehouse staff is the DNA of your eCommerce operations. As your business grows and you introduce new systems, it’s easy to assume that your team will just figure things out on their own.

But here’s the catch: assuming they’ll seamlessly adapt can lead to serious SLA gaps. When new technology rolls out without proper training, your employees might find themselves struggling to keep up. This can cause frustration, slow down processes, and ultimately mess with your delivery timelines.

No one wants that, right?

How to avoid it: To avoid these situations, you need to prioritize training from the start. You need to invest in technologies that provide product training and support. This will fast-track the learning process. With that in mind, sellers also need to encourage continuous learning for their staff.

Wrapping Up!

Mistakes happen, and they’re part of the learning process. The real problem is when you keep repeating the same mistakes without learning from them. Now that you’re aware of these five major mistakes in scaling operations and how to avoid them, you’re ready to take your business to the next level!