When you run a warehouse, it’s tempting to ensure you always have everything you could possibly need on hand at all times. You pack your selective pallet rack system with all the inventory you can handle. That way you’ll never disappoint the customer by being out of stock, right? Think again. There are plenty of disadvantages to this system:
- You’ll drive up your costs. More inventory is more of your cash flow tied up on your selective pallet rack shelves. That can put your cash flow in a bind. You could end up with more waste, too, depending on your inventory type.
- You’ll slow down your production. Whether you are assembling products or picking them for orders, too much stuff will slow down your teams. They’ll have to constantly be reorganizing and searching through stacks to find the items they need for your customers.
- You’ll end up running out of room. The cost of moving your warehouse should be avoided. It’s not a fun thing to do, and it can put a stop to your outgoing orders for days or even weeks.
Lean inventory is a great model to consider. You’ll keep only the things you need right now on hand on your selective pallet rack system in your Wisconsin warehouse. Specialty products may need to be special ordered or even drop shipping to customers, but the advantages you get by not needing to handle these items yourself are enormous.
Lean inventory takes more planning, but it can be a huge benefit to yoru Wisconsin warehouse. If you’d like to learn more about lean inventory management or how you can use your selective pallet rack more efficiently, give us a call today!