Effective warehouse management is crucial for companies in the FMCG and food service sectors, where maintaining stock accuracy, meeting stringent quality standards, and ensuring timely deliveries are key to operational success. This case study explores the challenges faced by a client managing warehouse operations for a prominent food and beverage brand, dealing with over 1,170 SKUs from a main warehouse. Operating in a B2B environment, the client’s goal was to streamline processes, enhance inventory control, and improve overall efficiency.
Challenges Faced in Warehouse Operations
Lack of a Warehouse Management System (WMS) The client initially did not have a dedicated Warehouse Management System in place. This led to a reliance on manual processes, causing inefficiencies and errors in stock management. The absence of a WMS made it difficult to monitor expiry dates, manufacturing batches, and the movement of goods, resulting in operational delays and increased costs.
Complexity of Managing Expiry and Non-Expiry Stocks Managing a wide range of products with varying shelf lives added another layer of complexity. The client needed to integrate both expiry and non-expiry stock management using methods like First Expiry, First Out (FEFO) to ensure that the oldest products were dispatched first. This was vital to reduce waste, meet regulatory requirements, and maintain product quality.
Inefficient Segregation of Stock The process of bulk picking followed by store-specific segregation was cumbersome and time-consuming. The lack of a structured approach to sorting and organizing inventory affected the speed and accuracy of order fulfillment, increasing labor costs and reducing overall efficiency.
Inadequate Bin and Location Management Without a proper bin and location management system, the client faced significant challenges in inventory organization. Manual handling and tracking led to frequent misplacement of items, further complicating the picking and packing process and impacting delivery timelines.
Quality Control and Process Discipline Issues The client experienced a lack of quality control during the inbound and return processes, resulting in frequent inaccuracies. There was a clear need to enforce discipline in handling inbound, outbound, and returns until the items were properly stored, ensuring compliance with quality standards and customer expectations.
Limited Real-Time Visibility and Tracking The absence of real-time visibility into order status and shipment tracking was another challenge. This gap hindered effective communication with stakeholders and created delays in fulfilling orders, affecting customer satisfaction.
Conclusion
The client’s warehouse operations faced significant challenges, including the lack of an effective WMS, complex stock management needs, and limited visibility into operations. To learn how these challenges were addressed and the solutions implemented, download the full case study now.
