Bottlenecks and Performance Dips: The Costs and Causes of Warehouse Downtime

Errors in inventory systems and failure of equipment can disrupt regular warehouse operations and lead to downtime. Unexpected downtime in warehouses can have a significant impact on companies, derailing their rates of productivity and turnover. In the worst cases, they create chronic bottlenecks in operations, causing production deficiencies, sporadic inventories and leading to increased pressure from clients.

Because of the unpredictable nature of downtime, company costs and resources are wasted. The company will have to spend not only on compensating for the lack of production, but also on diagnosing and addressing the causes of the problem.

Warehouse Performance

With the causes of downtime, warehouse performance suffers. One way to evaluate warehouse performance is by using measurements and benchmarks. Measurements focus on the efficiency of the company based only on its internal procedures and metrics; benchmarking focuses on a comparative analysis between companies with similar set-ups.

If the company’s internal metrics suggest that their production rate is trending down compared to previous months, the downtime is not just a temporary inconvenience but a hindrance to company success. Having a low fulfilment rate compared to other similar companies suggests the downtime is causing the company to lag behind its competition.

Here are some common warehouse practices to avoid:

Keeping Unreliable Inventory Data

Failure to keep track of inventory is not only a matter of data inaccuracy; it can also have a negative impact on warehouse operations by miscalculating supplies, shipments and deployments that lead to delays or stock problems that will take time to resolve.

In food storage warehouses, for example, the wrong estimation and oversupply of a food product can be costly. If the warehouse cannot accommodate the new delivery, it can lead to spoilage, making the product damaged or obsolete.

Using automated asset maintenance systems like predictive maintenance can help keep data clear, accessible and available.

Sticking with an Inefficient Warehouse Layout

The physical layout of any warehouse space can be improved, especially if the warehouse has recently added new products or services it did not originally plan to carry. Most companies tend to stick with the original layout plans of a warehouse, but change is necessary if there are bottlenecks in the operations.

For example, sharp corners and narrow pathways can cause small delays when transporting pallets. These small delays can accumulate to a lot of wasted time when added up over a month.

When reviewing the layout, consider readjusting racking systems to suit operations or making additional storage space such as the introduction of elevated floors and platforms at the mezzanine level.

Skimping on Storage Equipment

Proper utilisation of space is the basic requirement of any warehouse operation. Mismatching stock with storage equipment can lead not only to underutilisation of space but also to equipment damage and sometimes costly repairs. In severe cases, faulty storage can cause long delays because of the time needed for the procurement of new equipment.

Investing in comprehensive pallet systems and heavy-duty industrial cabinets for storage minimises the chances of underutilisation and the risk of damage.

Investing in Productive Warehouse Operations

At Containit Solutions, we provide an expansive catalogue of pallets, storage equipment and material handling systems suitable for a wide range of warehouse and industrial applications. We are a family-owned business with a reputation for well-designed and innovative products, including shelves, drawers, drums, trolleys, racks and other specialised equipment to match any industrial storage need. With Containit Solutions, we provide you the complete warehouse storage solution.

Invest in storage and operations now. Call us on 1300 603 110 or send us an enquiry at our contact page.