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fuel surcharges each month. Amid rapidly soaring fuel prices, this was a big deal, but it wasn't until an audit of their shipping invoices more than a year later that the IT department realized the magnitude of this oversight. The cost to the company was approximately $100,000 in lost fuel surcharges. As a result, the company purchased shipping software that included automatic surcharge updates to help ensure the problem did not happen again, but only after a hit to the company's bottom line. Other Common Pitfalls to Avoid There are several other areas that can present potential challenges with warehouse modernization if they're not appropriately managed. Overlooking these details can spell disaster: • Data/Inventory Accuracy: Maintaining accurate inventory data is essential. Errors in data can lead to stockouts, excess inventory or mispicks. • System Scalability: As your business grows, your systems should be able to scale without major overhauls. Leaning into scalable solutions can help avoid the pain of constant system upgrades and replacements. • Mobile Device Compatibility: Ignoring the need for mobile compatibility can hinder warehouse ef ciency. Ensuring that your WMS and other systems are compatible with mobile devices can signi cantly streamline warehouse operations. • Time and Resources for Implementation: Underestimating the time and resources needed to implement new systems or equipment can delay bene ts and increase costs. Proper planning and resource allocation can help ensure a smooth transition. • Customization vs. Off-the-Shelf Solutions: Settling for off-the-shelf solutions without considering customizations can lead to mismatched processes and other inef ciencies. Tailoring solutions to meet your speci c needs can often provide better ROI and operational bene ts, delivering more immediate results. • Compliance and Security: Ignoring compliance and security requirements can result in legal issues or data breaches. Ensuring that your systems meet industry standards and regulations is yet another important aspect of warehouse modernization. How to Avoid Warehouse Modernization Pitfalls When looking to modernize your warehouse and address operations pain points, doing your due diligence is key. It is critical that an organization fully understands its current material handling and order ful lment requirements and the process steps in place to achieve them. Trying to solve problems – that may or may not exist – without fully understanding them rst is a recipe for wasting resources. My advice is to always seek expert input. Verify expert recommendations with on-site visits to material handling users who have worked through warehouse management issues and concerns to achieve the best performance in their hardware and software investments. Plan for future developments you foresee such as potential expansion, process changes and material handling recon guration as your business needs evolve. When modernizing your warehouse, avoid the all- too-common misstep of implementing blanket solutions without considering your unique requirements. Engage with experts, perform on-site validations and anticipate future needs to make informed decisions. Ultimately, a strategic approach, combined with expert insights, can guide your warehouse to enhanced ef ciency and productivity. Remember, the journey to modernization is ongoing — remain agile and adaptive to continually meet evolving business demands. ID About the Author: Eric Allais is the President and CEO of PathGuide Technologies. For more information, visit www.pathguide.com. www.inddist.com January/February 2025 | INDUSTRIAL DISTRIBUTION 33 iStock credit gorodenkoff

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