Top 3 Silent Drains on Your Warehouse Profits

What you will learn in this blog

In today's rapidly evolving business landscape, the significance of warehouse operations in driving overall success cannot be overstated. Responsiveness, reliability, and costs within the supply chain are deeply influenced by efficient warehouse management. However, with the mounting complexities and pace of the modern market, ensuring seamless warehouse operations has become increasingly challenging.

Warehouse Profits

The Haunting of the Ghost Economy: A $1.75 Trillion Warning

According to the Retailwire, IHL's research report "Retailers and the Ghost Economy: $1.75 Trillion Reasons to be Afraid," unveils the alarming impact of overstocks, out-of-stocks, and preventable returns on the $14.5 trillion global retail economy.

The Price of Preventable Returns: $642.6 Billion Annually

Manual order fulfillment processes often lead to costly errors, wreaking havoc on your business's bottom line. Every time an inaccurate order is picked and shipped, it means wasted money on the original process. Sending a replacement order only adds to the expenses. The preventable returns haunt retailers, accounting for a staggering $642.6 billion in losses each year.

Solution: Precision and Perfection in Order Fulfillments

No more mixed-up orders! WMS comes to the rescue with barcode scanning and validation checks during order fulfillment. This nifty feature ensures that each order is picked and packed with utmost accuracy. Say hello to happy customers and fewer returns! A WMS can also create the most efficient pick paths for your warehouse staff, cutting down on unnecessary travel and reducing the chances of errors. Your orders will be processed seamlessly, and your team will work like a well-oiled machine.

Beware of the Ghosts: Overstocks and Out-of-Stocks

Overstocking and out-of-stocks, the ghouls of warehouse inefficiency, are a menace to businesses worldwide. Overstocks result in valuable products gathering dust on the shelves, while out-of-stocks leave customers unsatisfied and sales opportunities unfulfilled. The worldwide toll is alarming:

  • Out-of-stocks: A chilling $634.1 billion loss each year
  • Overstocks: A haunting $471.9 billion loss each year
  • The collective losses equate to a spine-chilling 11.7% of annual revenue for the average retailer.

Solution: Stay on Top of Inventory with Real-Time Tracking

With a Warehouse Management System, keeping tabs on your inventory becomes a breeze. Get real-time visibility into stock levels and track movements accurately. Say goodbye to over-stocking headaches! WMS can even automatically trigger replenishment orders when stocks are running low, ensuring your shelves are always stocked with what your customers need.

Unmasking Human Errors - A $259.1 Billion Menace

From innocent employee mistakes to training gaps and even fraudulent practices, human errors cast a dark shadow on warehouse performance. These avoidable missteps come at a high cost, amounting to a staggering $259.1 billion in annual losses.

Solution: Empower Your Team with Warehouse Management System 

Your team is your warehouse's backbone! WMS provides valuable performance data and metrics to supercharge your employees. With targeted training and clear accountability, your team members will thrive, delivering top-notch accuracy and efficiency in all operations. A motivated team is a winning team!

💡 Embracing the Light: Solutions for a Profitable Warehouse

The specters of the Ghost Economy and human errors may cast long shadows, but with the right tools and strategies, warehouses can shine through. By confronting overstocks, out-of-stocks, and preventable returns head-on, businesses can maximize profitability and ensure customer satisfaction. Embrace the light of innovation and let your warehouse operations thrive amidst the challenges of the modern market. There's no better time to rise above the shadows and achieve lasting success in the world of warehousing.



With PULPO WMS, you can manage your warehouse processes faster and easier than ever before.

Robust configuration options
Compatible with low-cost Android devices
Short training times for fast ROI


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PULPO WMS on Google play


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