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What Are the Main Challenges in E-commerce Warehousing & Fulfillment in 2022?

challenges of warehousing and logistics

What Are the Main Challenges in E-commerce Warehousing & Fulfillment in 2022?

The warehouses that process orders play a significant role in eCommerce fulfillment. Because of the unanticipated increase in demand, many warehouse managers are re-examining their operational processes to produce faster, more accurate, and more productive results to accommodate the volume.

According to a 2020 poll, 36% of warehouse and distribution center decision-makers reported increasing customer expectations for shipping, while 35% reported increasing e-commerce transactions. Thirty-four percent are under pressure to fulfil more orders faster and at a lesser cost.

Here are five product order fulfillment solutions issues they must investigate and handle if they are to succeed in this new economic environment:


Challenge #1: Optimizing Warehouse Picking

One of the most important aspects of warehouse operations is having excellent picking operations.

Picking is the process of collecting the correct item(s) for an online buyer once they have placed their order. It’s a crucial aspect of operations that consumes a large portion of a warehouse’s budget and is labor-intensive.

Why is it significant? At worst, an inefficient selection system can result in incorrect items being shipped, orders being delayed, and orders being returned. This could be due to:

  • Warehouse associates waste too much time traveling throughout the warehouse, picking up various products, and taking inefficient routes.
  • The absence of an efficient system allows warehouse managers to track operations and identify problems properly.
  • Equipment and manpower are underutilized.
  • Outdated processes or an excess of manual processes

Picking is an essential part of the fulfillment process. Having the necessary tools and processes to support this operation improves customer happiness and lowers operational expenses while decreasing the work and expense associated with returning items.


Challenge #2: Packing the Right Items in a Cost-efficient and Careful Manner

After selecting the appropriate commodities, warehouse employees must pack them in a cost-effective and safe manner before sending them. This is an essential phase because it is the final opportunity to correct any choosing mistakes. It’s also a challenging stage because products must be packed such that each package may accommodate as many items as possible without harming them or exceeding weight constraints. At the same time, things must be properly packed and have adequate shipping and delivery instructions.

Warehouses stretched to meet the increased eCommerce activity may resort to packing tactics that result in various ecommerce storage issues, such as the wrong item being shipped, needless shipping expenses, and receiving damaged items.

Order delivery issues eventually reduce customer confidence and satisfaction and can result in needless reverse logistics costs.


Challenge #3: Mismanaged Inventories

Few things irritate eCommerce customers more than learning that an ordered item is out of stock and will take longer to ship. Such encounters reduce consumer pleasure, urge purchasers to consider competitors, and harm a brand’s reputation.

Inventory turnover is faster when items are in high demand. Warehouses need help to keep up when inventory reports are erroneous, stocking up on slow-moving products is prioritized over in-demand commodities, products are difficult to identify, and restocking is done manually.


Challenge #4: Managing Orders Efficiently

Order management includes everything from accepting orders to processing and fulfilling them by warehouses. While it may appear simple to the customer, there are several behind-the-scenes phases where order management can go awry, especially when dealing with higher numbers.

There are many moving components that warehouses must keep track of, from ensuring that reported inventories are accurate to placing orders, verifying them with clients, selecting and packing, and shipping.

Multiple systems and reports, an order management system that needs to be integrated with the rest of the operations, unstructured order batching, and a lack of relevant performance statistics compound the situation.


Challenge #5: Having the Right Device Management System in Place

Companies with many locations inventories must rely substantially on their device management solutions. These systems assist warehouse managers in keeping track of all gear in the warehouse, such as scanners, cameras, material handling equipment, etc.

Device management systems are more crucial than ever for efficient warehouse operations. It helps managers stay on top of what’s happening inside and closely check on the functioning of the various equipment that feeds the system information. A strong device management system is essential for operations since it enables managers to:

  • Determine when it is necessary to repair or replace equipment.
  • Reduce operational expenses and improve efficiency by using a single centralized system across multiple sites rather than separate systems for each warehouse.
  • Reduce the requirement for on-site maintenance.
  • Instead of having multiple access points running on separate operating systems, use a mobile device to access the system.
  • Managers and IT can remotely configure hardware modifications.

With increased demand and competitiveness in ecommerce, warehouses must scale up their activities as efficiently and as quickly as feasible. This is possible with the proper device management system.