warehouse management challenges Archives – unicommerce.com

5 Key Warehouse Management Operational Challenges & Solutions

Team Unicommerce — Mon, 10 Apr 2023 08:49:03 +0000

E-commerce has always been a challenging sector, particularly when it comes to managing a large inventory. With customers expecting quick delivery and high levels of service, e-commerce businesses must be able to manage their operations to succeed efficiently.

One of the biggest challenges faced by e-commerce businesses is the management of their warehouses. A mismanaged warehouse can slow down operations, reduce efficiency, and hurt overall productivity. It can even stop the whole process chain. A report published by McKinsey & Company in 2019 estimated that around £300 billion is spent on warehousing costs alone, without considering the cost of correcting errors.

Managing a warehouse can be tedious and redundant if done manually. There are many challenges that can arise and cause problems later on. Here are some to watch out for and ways to overcome them!

5 Warehouse Management Operational Challenges

Managing a warehouse can be full of challenges, but we’ve shortlisted five of the most common ones your business should be aware of:

Challenge 1: Poor Inventory Management

A warehouse may contain tons of SKUs and a variety of products. Right placement plays a vital role in not just making it easier to pick but having lesser room for errors. Bad placement or lacking a systemized approach to inventory management can make a business face the following situations:

Difficulty in locating products when an order needs to be fulfilled. This can result in employees wasting time searching for the product and can lead to marketplace SLA breaches and, ultimately, delayed deliveries.
Accepting orders without knowing the current stock levels, and later missing out on the deliverables causing delayed deliveries, loss of customer trust, and negative reviews, damaging the brand’s reputation.
Denying orders on the assumption of lesser stock but later finding a few pieces left, leading to order loss and stock expiry.

Keeping a real-time record of the inventory is crucial to avoiding these problems and maintaining accuracy in fulfilling orders on time.

Challenge 2: Accidental Redundancy

One of the common challenges faced by larger warehouses is redundant operations. This refers to when the same operation is performed multiple times on the same item due to an improperly organized workflow. The operations in a warehouse are typically organized as workflows to streamline the process, but if these workflows are not systematically arranged, redundancies can occur.
These redundancies significantly shoot the labor costs and increase the order-to-ship time for a business. If the inefficiencies persist, it can result in more SLA breaches, where the promised delivery date is not met, which can ultimately lead to dissatisfied customers and a poor customer experience.

Challenge 3: Inefficient Space Utilization

Many warehouses are not being utilized to their full potential, with usage often only reaching 68% of capacity. This results in an inefficient use of space and a cluttered layout, which can make it difficult to store and manage inventory.
A messy and cluttered layout can also make it difficult for workers to find and access the needed products, leading to more time spent searching for items and potential delays in order fulfillment. To ensure an efficient and cost-effective warehouse operation, it’s important to make the most of the available space.

Challenge 4: No Preparation for Seasonal Demands

Staying attuned to market trends and customer demand is crucial for business like fashion, beauty and personal care, FMCG, particularly when it comes to product inventory. Some products may only have increased demand during a specific season, while others may be hot sellers year-round.
Proper inventory placement and management can help businesses keep up with demand and ensure that their most popular products are readily available. Staying informed about market trends and customer needs can help businesses keep their hot sellers in stock and within reach.

Challenge 5: Poor Damage Control

Damage is inevitable in a warehouse, though we can still take precautions to reduce it. When handling a large inventory and heavy-duty equipment, it’s important to take steps to minimize the risk of accidents such as slips, falls, breakage, and other incidents that can result in product loss. To help sail through, you must have all the safety measures taken in the warehouse and protect not just the products/inventory but keep your employees safe at the same time. By protecting both products and employees, businesses can help ensure a safe and efficient warehouse operation, minimize product loss, and maintain a positive working environment.

Sorting the Hassle: How to Overcome These Challenges

As poor inventory management is one of the significant challenges, the best way to overcome the challenge is to switch to inventory management software or overall warehouse management software. By using comprehensive warehouse management software, businesses can better manage their product stocks, streamline operations, and optimize inventory management.
Warehouse management is not an easy nut to crack; even well-established brands have been leveraging warehouse management systems to overcome the challenges on the way. For instance, Chumbak, a leading design-led home and lifestyle brand faced challenges in keeping up with rapidly increasing customer demands across online and offline channels.

The brand struggled to manage warehouse operations, leading to the following challenges:

Unaligned inventory visibility across offline and online sales channels
Difficulty in integrating their ERP system
Delayed order processing and fulfillment
Lack of full automation to manage warehouse operations for e-commerce
Inaccurate business reports and analytics

Unicommerce provided the brand with omni-enabled solutions, including inventory management and order management, to synchronize their inventory across all offline stores and warehouses. This helped the brand improve customer experience by increasing the fulfillment rate and meeting service level agreements (SLA).

If you’re looking to streamline your warehouse operations and drive business profitability, consider implementing a warehouse management system. It can help you overcome common challenges and provide a more efficient, integrated solution for managing your inventory, orders, and overall warehouse operations.

Healthcare Industry in India: Trends, Challenges, Opportunities & Solutions

Team Unicommerce — Thu, 06 Apr 2023 08:54:36 +0000

The Healthcare Industry in India is constantly evolving, and in recent years, it has experienced a significant transformation which is driven by technological advancements and shifts in consumer behavior. This has led to a wave of disruption and created new opportunities for healthcare brands and retailers. Let’s delve into the current scenario in healthcare sector and explore the challenges and opportunities faced by e-commerce healthcare sellers in India.

Healthcare Landscape: The Current Scenario

In today’s healthcare landscape, there are several notable trends and developments that are shaping the industry. One of the key drivers of change is the rapid growth of telemedicine and the widespread use of health and wellness apps. The online space has emerged as a powerful platform, enabling pharma, healthcare, and wellness brands to reach a wider audience across India. Notable players such as Netmeds, Healthkart, 1mg, PharmEasy, and many others have played an important role in this digital revolution.

The COVID-19 pandemic further accelerated the trend of people prioritizing their health and overall well-being; this led to the popularity of nutraceutical brands like Oziva, Kapiva, Plix, Power Gummies, Fast and Up, and more. According to Invest India, the Indian healthcare market is projected to reach US$ 50 bn by 2030 and is expected to expand further. This means it’s the right time for retailers to capitalize on this opportunity and streamline their operations.

Healthcare Industry in India: The Growth Drivers

Robotic Process Automation (RPA): Utilizing RPA in the Indian healthcare industry enhances workforce efficiency, drives cost reduction, and generates a compelling value proposition.
Shifting Disease Burden: The healthcare sector in India is facing a significant burden due to non-communicable diseases (NCDs), which account for 50% of the disease burden and 60% of all deaths. However, there are positive developments and initiatives aimed at addressing the challenges and driving growth in the industry.
Policy Support & Incentives: Policy support and incentives play a crucial role in promoting healthcare industry growth. The Indian government has allowed 100% foreign direct investment (FDI) in Greenfield and Brownfield projects, while also taking measures to correct unfavorable duty structures. Additionally, a single window clearance e-portal has been introduced to improve ease of doing business.
Atmanirbhar Bharat Abhiyaan – Self Reliant India: Under the Atmanirbhar Bharat Abhiyaan (Self-Reliant India), a comprehensive package of INR 20 lakh crore has been allocated to promote manufacturing in the country. This initiative aims to strengthen the healthcare industry and support its growth.
Insurance Coverage: Insurance coverage is gradually increasing in India, with 20% of the population currently covered. As incomes rise and urbanization continues, it is expected that more individuals will have access to insurance, further bolstering the healthcare market.
Emergence of Telemedicine: The emergence of telemedicine has been a game-changer, providing convenient and accessible healthcare services. Government initiatives like e-health, combined with tax benefits and incentives, are driving the adoption and growth of telemedicine in India.
Medical Infrastructure: Significant investments are being made in medical infrastructure, with over $200 billion expected to be spent by 2024. This investment will contribute to improving healthcare facilities and expanding access to quality care across the country.

Overall, with the integration of RPA, policy support, increasing insurance coverage, telemedicine advancements, and investments in medical infrastructure, the healthcare industry in India is poised for enhanced efficiency, reduced costs, and a promising value proposition.

However, e-commerce healthcare sellers in India face numerous challenges, particularly in the operational aspects of their business, such as warehouse management, inventory control, and the ability to sell seamlessly on multiple marketplaces. So let’s get started with the warehousing challenges and their solutions in the healthcare industry!

5 Major Warehouse Management Challenges in Healthcare Industry in India

Here are five significant challenges that the healthcare industry faces in terms of managing its warehouse:

1. Ensuring Optimal Stock Control: Inventory Management

Healthcare warehouses often deal with a wide range of products, including medications, medical supplies, equipment, and consumables. Each item has its own unique requirements, and failing to effectively monitor and control inventory can lead to stockouts, excess inventory, expired products, and increased costs. Striking the right balance between stock availability and minimizing excess inventory is crucial to avoid financial losses. Especially for the healthcare industry, where products have expiration dates and strict regulatory requirements, maintaining optimal stock control can be challenging.

Solution: Warehouse managers need to accurately forecast demand, monitor inventory levels, and implement efficient replenishment processes to prevent stockouts or excess inventory. With a well-designed inventory management system, you can effectively manage inventory and meet the demands of this dynamic industry.

2. Preserving Product Integrity: Storage and Temperature Management

The success of healthcare and wellness products heavily relies on their ability to maintain optimal quality throughout their lifecycle. Healthcare products are often sensitive to storage conditions, including temperature and humidity. Some drugs require specific storage conditions, such as refrigeration or controlled room temperature, to maintain their potency and efficacy. Maintaining appropriate storage conditions is essential to preserve product integrity and ensure patient safety.

Solution: Healthcare and wellness companies and distributors should establish robust storage management systems. For example, various products require specific storage conditions, such as room temperature or low-temperature environments. To effectively manage these requirements, a system should be implemented to quickly identify and segregate each batch based on its specific storage needs. The products should be stored in a way that allows for easy identification and access while minimizing the risk of temperature fluctuations.

3. Expiry Management: Ensuring Product Shelf Life

One of the significant challenges faced by healthcare brands is effectively managing product expiry dates. Healthcare products have limited shelf lives due to factors such as stability, potency, and regulatory requirements. Failing to monitor and address product expiry can lead to significant financial losses and potential risks to patient health if expired products are distributed.

Solution: Warehouse managers need to have a robust expiry management system that includes regular monitoring of product expiration dates, proper rotation of stock, and batch tracking for quick identification of expiration dates. Stock rotation methods like first-in, first-out (FIFO) or first-expired, first-out (FEFO) facilitate the timely removal and disposal of expired products. Also, implementing a batch-tracking system enables the association of specific products with their respective batches or lots. This allows for easy identification and traceability of products throughout their lifecycle.

4. Efficient Order Fulfillment: Pick, Pack, and Ship Processes

Accurate and efficient order fulfillment is crucial in healthcare warehouse management to ensure the timely delivery of products. This involves picking the right products from the inventory, packing them securely, and shipping them to the correct destinations. With a wide range of products and varying order volumes, optimizing these processes can be challenging.

Solution: A robust e-commerce order management system can help streamline the picking process by providing real-time visibility into inventory and automating order tracking. Dhani, a digital financial and healthcare services company, successfully tackled a similar issue by adopting a robust Unicommerce system, which helped them achieve an order fulfillment rate of over 99.99%.

5. Tracking Every Product: Traceability and Serialization

To ensure safety, combat damaged products, and comply with regulations, healthcare companies must track every product throughout the supply chain. Traceability involves documenting the movement of healthcare products from the moment they are received as goods until any potential returns, while serialization assigns a unique identification code to each product unit for traceability and authentication.

Solution: Implementing a robust warehouse management system (WMS) using technologies like barcode scanning and item-level traceability for product verification can provide real-time visibility and prevent the dispatch of damaged or expired products. Notable brands like Kapiva, PharmEasy, and Cureka are leveraging technology solutions like Warehouse Management Systems (WMS), Order Management Systems (OMS), and others to achieve operational excellence.

Let’s Conquer Healthcare Warehousing Excellence!

The healthcare industry is constantly evolving, presenting new challenges for effective warehousing operations. However, using a robust Warehouse Management System (WMS) solution can help healthcare companies effectively overcome the challenges they face in warehousing operations. These solutions not only provide powerful integrations but also simplifies order processing across multiple marketplaces, paving the way for warehousing excellence!

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