Every company faces days when the warehouse struggles. Things break, go wrong, orders are canceled, or a stack of boxes is discovered in a corner, and now you’ve spent too much on your restock. Or, you find a giant box with only one product left inside, meaning new sales have to go on backorder.

These are everyday warehouse problems that managers deal with. Understanding these warehouse management challenges and how to fix them can make operations more predictable and far less costly.

Inaccurate inventory counts

Unsurprisingly, inaccurate inventory counts are the most common issue. They cause discrepancies between what orders you think you can take and fill and what actually gets out the door to customers. Having less product than you thought can lead to back orders and shipping delays, frustrated customers, and making you miss out on sales.

On the other hand, having more inventory than you thought can lead to unnecessary resupplies that force you to find room to store more than you needed. You’re just wasting money on space and goods without any need.

If you’re working with perishables, poor inventory control can also lead to product losses. It’ll eat into your cash on hand and limit your ability to gain revenue, essentially costing you twice. When you don’t have things like mobile support, you’re doing it all by hand.

The solution:

Introduce automation and checks to your counts. Look for WMS solutions that have you scan goods as they’re moved. Find something that tracks every step or change, including:

When goods are received
When you break down a pallet or carton into individual units
When you create a kit out of multiple SKUs
As goods are put away on shelves
As goods are picked from shelves and orders are filled
When an order moves to a pack station, scanning the entire order before the packing process starts
When items need to be returned to shelves under unusual circumstances, such as returns or canceled orders

Vendors want to make it easy for you to understand what you have and keep those counts accurate because when they save you money on storage and labor, you’re more likely to stick with their software.

Space utilization issues

Poor warehouse layout can cause inefficiencies in storage and retrieval, increasing labor costs and slowing down order fulfillment.

The solution:

You’ll want a WMS that’s smart enough to help you identify the fast-moving inventory so you can keep it located closest to your packing stations, reducing fill times on those small or standard orders. Systems can also highlight what products are purchased together often, allowing you to save some picking time by moving these items closer together in your warehouse.

If you’ve got items that are typically sold in large quantities or are unusually heavy, moving them to areas where lift truck drivers can easily access the goods and maneuver can cut down on pick time as well as reduce the likelihood of accidents.

Your system should also support you when an order currently being picked gets canceled. Find a solution that notifies pickers and has a clear process to get these products back on shelves and accurately counted. This mid-stream shift can be tricky, but it must be handled correctly to keep your inventory counts accurate. Knowing where you have extra space to temporarily store such canceled orders can help ensure things are kept separate until products are ready to go back on shelves.

Logistics issues

Logistics-related warehouse management challenges often come down to how well your warehouse connects with partners—suppliers, distributors, sales channels, and 3PLs.

In practice, these warehouse problems usually show up in software. eCommerce platforms, CRM systems, SCM tools, and ERPs all depend on accurate warehouse data. When integrations break or don’t align, teams fall back on manual work, creating delays, duplication, and costly errors.

The solution:

Select a WMS that integrates reliably with your existing systems and partners. Manufacturing-focused platforms tend to align with supply chain tools, while eCommerce-friendly WMS options connect more easily with platforms like Shopify or WooCommerce.

At its core, the warehouse is a central hub—and your software should connect every moving part without friction.

Transportation challenges

Transportation costs are usually right behind labor in the list of concerns your managers have. These costs encompass everything from delays in inventory and orders to maintenance and insurance, as well as touching on inventory control.

The issues typically come from areas where you’re focused on shipping and receiving goods, keeping everything on time and flowing.

The solution:

When you’ve got a tight operation, understanding transportation expectations makes it easy to cross-dock and streamline your putaway to make the most of your inventory and labor.

Another essential element is the relationships your warehouse has with carriers. You may have negotiated relationships to reduce costs for packages. However, there’s never a perfect carrier for every package. So, your WMS needs to be able to understand product differences for things like DIM weight and shipping zones in your country.

If you’re not using a WMS to select the best carrier, you could be overpaying based on package weight, size, volume, and delivery targets. For larger operations, this extends to shipping routes and lanes across modes, making a robust WMS even more essential.

Final thoughts

Across all these warehouse management challenges, one theme stands out: customer expectations. Fast delivery, accurate orders, and clear timelines all depend on how well your warehouse runs.

Every process feeds into that outcome, so when evaluating vendors, focus on how well their WMS solves your specific warehouse problems and supports your day-to-day operations.

About the author…

Geoff is an experienced journalist, writer, and business development consultant with a focus on enterprise technology, e-commerce, and supply chain development. Outside of the office he can be found toying with the latest in IoT, searching for classic radio broadcast recordings, and playing the perpetual tourist in his home of Washington D.C.

Geoff Whiting

Home

What are the most common warehouse management challenges in 2026?