Tag Archives: Excess Inventory


The supply chain is a business’s lifeblood. Unfortunately, much like our own bodies, it’s possible for this system to become sluggish and lethargic through neglect. Just as a lack of exercise and a poor diet can cause our blood to become clogged with cholesterol and fat, inefficient warehouse management can lead to serious issues for your operation. This is why it’s so important to understand how to avoid bad habits that can lead to problems in your warehouse operation.

For example, one of the most common mistakes made in these environments is having too much inventory. A glut of products means the money spent producing them is just sitting on the shelf providing no return on investment. A strict SKU rationalization plan can ensure that nothing goes to waste, and that only those items that are sure to sell enter the supply chain.

Another frequent misstep is made when inventory management doesn’t include metrics. Without a clear idea of how well a facility is performing, it can become nearly impossible to make improvements. Measuring all the factors that matter to your operations is essential if you want to streamline them. Too many warehouse managers also forget about work in process as they rush to push end-of-month orders out the door. When there are no finished goods to fill orders at the start of the month, they’re always playing catch-up.

Taking care of your body is crucial if you want to live a longer, healthier life — and the same principle applies to your warehouse management. For more tips on how to avoid poor habits that can hurt your business, see the accompanying infographic.




Author bio: Don Amato is Vice President of Sales for Chicago Tag & Label, which manufactures form labels, labels and tags that deliver solutions to a broad range of industries including retail, industrial, manufacturing, distribution and medical environments.


Back to top ↑