4 Common Warehouse Mistakes and How to Avoid Them
                     4 Common Warehouse 
Mistakes and How to Avoid 
Them
Warehousing and distribution have 
never been as complex as they are 
today. With advances in technology 
and competitive delivery times, 
consumer expectations are at an 
all-time high. The pressure for 
businesses to meet high-speed 
delivery demands can put a strain 
on overall operations, so it’s 
extremely important to keep your 
warehouse logistics running 
smoothly.
While there is no one-size-fits-all approach when it comes to 
warehouse operations, there are a set of simple efficiency principles 
that should be applied. To help you stay on top of your warehouse 
management and ensure storage facilities don’t generate unnecessary 
costs, take a look at these four common warehousing mistakes:
1. Holding Excess Inventory
 
Holding excess inventory is one of the biggest mistakes 
warehouses often make. If you don’t have sufficient space and 
staffing support, excess inventory can be costly, hazardous and 
even slow down the supply chain. While it might be easier to buy 
stock at a wholesale price, it also leaves your money tied up in 
stock, which can be risky if the supply demand suddenly drops.
2. Poorly Planned Picking Paths & Space 
Another common mistake is failing to optimise picking paths. Efficient 
picking paths lead to more effective use of time for the staff preparing 
orders and requires less time moving around the warehouse. Failure to 
optimise picking paths can result in slower turnaround times and 
unnecessary labour costs.
To avoid this, consider the layout of 
your warehouse including the location 
of SKUs (Stock Keeping Unit) and 
shipping areas. Items that are often 
purchased together should be stored 
close together and the order packing 
process should also be linear so 
employees finish at a location closest to 
shipping area.
3. No Plan for Future Growth
Forgetting to plan for the future is a mistake that should always be 
avoided! Often warehouses are leased making them expensive to 
maintain, along with other expenses like insurance and climate 
control. While no one wants to pay for unnecessary space with no 
guarantee of expanding in the future – it’s sensible to plan for 
potential growth and avoid overcrowded inventory and poor 
operations.
 A good plan should anticipate changes in the market, seasonal effects 
on inventory and technological advances. It should outline contingency 
plans for when growth is needed – such as adding more pallet racks, 
managing overstock and rearranging picking paths.
4. Infrequent Audits
A lack of regular warehouse auditing can be easily overlooked especially 
during busy periods. However, regular audits will ensure that your 
warehouse is functioning efficiently, cost-effectively and safely.
Audits can be regularly implemented by a manager within the company 
or an external consultant. The purpose of the audit should be explained 
to any of the staff involved and results need to be communicated so that 
improvements can be made. The audit should consider:
• Housekeeping
• Hygiene & Cleanliness
• Hazardous Areas
• Cost & Quality Control
• Processing Times
Whether industrial warehousing, commercial 
storage or office, we have the products, 
expertise and experience to provide the right 
solution for your needs.
Improve Efficiencies, Optimise Your Existing Commercial 
Storage, or Update Your Corporate Office Space with Us
www.allstoragesystems.com.au