- There is now empty space in the warehouse.
- The salesperson will have to tell customers their purchases will not be delivered on time.
- Manufacturers have a time when orders will not be completed because required parts are not available.
Problems with traditional inventory and warehouse management systems
Technology has changed traditional warehouse management systems by altering the way companies send and receive orders. Traditional systems can be problematic because as a company’s volume order increases, the system of receiving and distributing orders becomes more complex. Companies often expand product offerings, meaning warehouse management systems must adapt to new inventory and the changing business. A poor warehouse management system drains a company’s money by not accurately keeping track of orders. Systems like Microsoft Dynamics NAV help improve inventory and warehouse management systems. This is because it streamlines the process of sending and receiving orders while accurately keeping track of inventory. These are some of the problems with traditional inventory and warehouse management systems: Predicting lead time Lead time affects inventory and warehouse management systems because it differs for many products. For example, a clothing company manufactures 80 percent of its products in the U.S. and 20 percent in Brazil. The lead time for the Brazilian-made clothes is longer than the U.S. clothes, creating situations where managers must predict estimated lead times. A wrong lead time prediction creates situations where products may not be delivered on time and to customers’ expectations. Difficulty customizing management practices Traditional warehouse management systems are not as customizable as today’s new technology. Companies can’t all have the same warehouse management practices because they do not all provide the same products or services. For example, two companies in Texas both produce and sell living room furniture. The first company has eight warehouses, and sells a variety of different couches, chairs and coffee tables. The second company has three warehouses and only sells couches. These two companies exist in the same market, but warehouse management practices need to be customized because they do not sell all of the same products. Microsoft Dynamics NAV allows for customized warehouse management applications including scaling operations to support business growth and increasing the reality of mobile workforce. Lack of communication in regards to inventory The list of supply chain employees is long. Some of the people involved include: warehouse workers, manufacturers, company managers and product salesmen. When one thing goes wrong in the supply chain, it affects all the different parts. For example, say a company manufactures and sells computers. One of the company’s computer chip delivery trucks breaks down and is unable to make its delivery on time. This incident affects different aspects of warehouse management and the inventory supply chain in the following ways: