Xiada Intelligent Equipment: What are the shortcomings of warehousing?

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Publish Time:

2025-07-28

Warehousing, a crucial aspect of the logistics system, presents numerous shortcomings in practical operation, as detailed below:

 

Limitations of Traditional Warehousing

1. Single Functionality and Idle Resources: Only providing basic storage services, it fails to meet the demands of high-frequency, multi-variety order processing for e-commerce, resulting in low utilization of warehouse facilities. This is particularly problematic for small-batch production enterprises, where investments in automated equipment easily lead to redundant configurations and idle resources.

2. Manual Management and Low Efficiency: Using paper documents to record goods flow leads to a high risk of human error. As the volume of goods increases, manual operations struggle to cope with high-frequency inbound and outbound activities, resulting in decreased labor productivity and severe waste of human resources.

3. Lack of Flexibility and Adaptability: In the face of changing market demands (such as fluctuations in receiving and shipping tasks and adjustments to the types of goods), the equipment and management systems of traditional warehouses fail to upgrade promptly, gradually losing market competitiveness and becoming idle.

Challenges of Automated High-Bay Warehouses

1. High Construction Costs: Requires complex equipment such as high-bay racking, stacker cranes, and control systems, resulting in high infrastructure investment, long construction cycles, and high precision requirements.

2. Limited Goods Adaptability: Goods that are oversized, overweight, or require special storage conditions require individually designed storage systems, resulting in poor versatility.

3. Technical Barriers and Maintenance Pressure: Requires professional personnel to operate and maintain equipment and integrate deeply with procurement, sales, and other systems. High post-maintenance costs require long-term support from service providers.

4. Insufficient Scalability: Difficulty in coping with unexpected demand during seasonal peaks, with weak flexible adjustment capabilities.

 

Risks and Bottlenecks of Centralized Warehousing

1. Long Capital Recovery Cycle: The return on investment for large-scale infrastructure construction is slow; if business volume is unstable, it is difficult to maintain operational balance.

2. Concentrated Safety Risks: Natural disasters or man-made accidents may lead to the destruction of all inventory, resulting in weak risk resistance.

3. Management Complexity Increases with Scale: When the business volume is too large, the difficulty of coordination and scheduling increases, placing higher demands on the level of information technology and team collaboration.

 

Specific Pain Points of Overseas Warehouses

1. Inventory Pressure and Market Uncertainty: The advance stocking model easily leads to backlog or stockouts due to deviations in demand forecasting, increasing capital occupation costs.

2. Cross-Regional Management Challenges: Sellers cannot directly control overseas warehouses and rely on remote information systems, leading to communication delays and execution errors.

3. Inconsistent Service Provider Quality: Third-party overseas warehouses may experience logistics delays, inventory data errors, etc., requiring additional effort to screen partners.

 

Common Defects

1. Insufficient Space Utilization: Manual storage location planning leads to mainly flat stacking, failing to fully utilize vertical space; inconsistent container specifications further exacerbate waste.

2. Chaotic Material Flow: A mix of new and old materials affects the implementation of the FIFO principle; manual records make it difficult to locate goods, and disorderly line-side material management hinders production efficiency.

3. Information Silos: Poor integration between WMS and ERP systems, poor data real-time performance, and lagging decision-making basis; frequent manual entry errors and prominent discrepancies between accounts and actual inventory.

4. High Environmental Control Costs: Temperature and humidity sensitive goods (such as electronic components) require constant temperature and humidity equipment, and anti-static measures increase operating costs.

5. Difficult to Control Safety Stock: Large fluctuations in the supply chain lead to inaccurate demand forecasting, resulting in either excessive inventory tying up funds or stockouts affecting production continuity.

6. Lack of Systems and Blurred Responsibilities: Unclear division of departmental functions and non-standard operating procedures lead to long-term accumulation of problems such as chaotic accounts and stagnant material accumulation.

 

The above shortcomings indicate that the optimization of the warehousing system requires a combination of technological upgrades (such as intelligent scheduling), model innovation (such as hybrid layouts), and refined management (standardized processes) to break through traditional bottlenecks and adapt to dynamic market demands.

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