---
title: "Why Warehouse Rectification Is Hard to Implement, and How to Do It"
description: "As distributor companies grow, warehouse management issues such as inaccurate inventory, low shipping accuracy, and chaotic on-site management become apparent, leading to annual losses of 2-3% of sales. This article analyzes the resistance from owners and warehouse staff and provides practical steps to successfully implement warehouse rectification."
author: "New Distribution"
publisher: "New Distribution"
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telephone: "+8615854817671"
published: "2014-07-29"
language: "en"
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# Why Warehouse Rectification Is Hard to Implement, and How to Do It

> As distributor companies grow, warehouse management issues such as inaccurate inventory, low shipping accuracy, and chaotic on-site management become apparent, leading to annual losses of 2-3% of sales. This article analyzes the resistance from owners and warehouse staff and provides practical steps to successfully implement warehouse rectification.

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As distributor companies expand their business scale, some matching issues between the backend management system and the frontend sales system gradually emerge, the most direct being warehouse management problems. These include unclear inventory counts with significant discrepancies, low shipping accuracy, frequent disputes between delivery personnel and warehouse staff over accuracy, chaotic on-site warehouse management, lack of effective time management, and dead stock or inventory loss caused by internal reasons. On average, the comprehensive annual loss in a typical consumer goods distributor's warehouse amounts to about 2-3% of annual sales. That is, a mid-sized distributor with annual sales of around 50 million yuan loses roughly 100,000 to 150,000 yuan each year in the warehouse.

Should the warehouse be rectified? The answer seems clear: yes, it must be rectified!

The author has helped many distributors with warehouse rectification projects, but during the process, they invariably faced resistance from various sides. Overcoming this resistance has become the most time-consuming part of the work. So, where does this resistance come from?

First, the boss himself. Logically, the boss is the initiator of the rectification, so how could he become an obstacle?

1. The boss's psychological perception: Most bosses have a mental expectation of warehouse losses, thinking it's only a few tens of thousands of yuan per year (on the books). With tens of millions in annual business, such losses seem negligible. However, once rectification begins, the initial inventory check often reveals losses several times higher than imagined, and some bosses can't handle it. They prefer to bury their heads in the sand like ostriches, ignoring the problem.

2. For management improvement, dead stock and long-term slow-moving items should be cleared out, but some bosses are reluctant. They feel these goods were bought with their own money, and throwing them away is wasteful. Although these goods are like rotten meat with no value, cutting them off still hurts. Psychologically, as long as the goods remain in the warehouse, their book value exists, and maybe they can be used to offset payments to manufacturers or for other purposes. So they decide to keep them and skip the cleanup.

3. The cost of equipment: Improving warehouse efficiency relies heavily on tools and equipment such as pallets, forklifts, bulk turnover baskets, surveillance equipment, and sorting racks. These hardware items are often expensive and require real money. The boss hesitates... then thinks, "Without buying this equipment, the current state is still acceptable, so let's maintain the status quo."

Of course, the difficulty in promoting warehouse rectification is more often due to the warehouse staff. Warehouse managers in distributor companies are usually the boss's trusted confidants, often relatives or long-time employees, with long tenure and relatively high stability. However, very few have formal warehouse management training, and they rarely participate in professional technical learning later. They manage the warehouse based on experience and have formed their own systems. Additionally, warehouse loaders are the lowest-level employees in the company, with low income and limited growth opportunities, leading to a sense of inferiority. People with low self-esteem often display a cocky attitude on the surface. What objections do warehouse keepers and loaders typically raise?

1. "The current situation is fine; everyone is familiar with the work, no need for rectification."
2. "Boss, you've been fooled! There's no need for rectification; it's just a waste of time."
3. "It's too hot (or too cold) recently; let's wait for better weather."
4. "We're short-staffed lately; we can't even guarantee normal inbound and outbound, so how can we spare manpower for rectification?"
5. "Business is heavy now; can we wait until the off-season?"
6. "We're about to move to a new warehouse; should we wait until after the move?"

Of course, these are the stated reasons. The real reasons are:

1. "The boss doesn't trust me, suspects me, so he wants to rectify."
2. "My years of warehouse management experience are seen as worthless by the boss."
3. "I've developed specific work habits; introducing new standards and processes will disrupt my original way of working, which I find hard to accept."
4. "I'm already familiar with all the warehouse tasks; there's no need for rectification."
5. "I know there are many historical problems that have been covered up. Now rectification will expose all these old issues, and that could be disastrous."
6. "It affects my income. There are some extended benefits in the warehouse (like disposal of damaged goods, sale of cardboard, etc.) that have been distributed and balanced. Rectification will make things transparent and centralized, breaking the balance of interests."
7. "I've been involved in wrongdoing and fear being discovered during rectification."

So, if the warehouse rectification is to be carried out, several points need to be clarified in advance:

1. The boss must make up his mind: either don't start, or thoroughly clean up, and set a budget; money must be spent where needed.
2. The office internal rectification should come first, with warehouse rectification following or simultaneously, to show that this is a company-wide effort, not just targeting the warehouse.
3. Start with improving the living and working environment for warehouse staff, such as cleaning the office, adding wardrobes, water dispensers, disinfection equipment, microwaves, tables and chairs, vacuum cleaners, etc., to make things convenient and improve the living environment.
4. Establish a connection between the office and the warehouse, such as sharing order and arrival information from manufacturers, and ensure a monthly full inventory count and weekly spot checks.
5. The boss should increase the frequency of warehouse visits to at least twice a week.
6. Break the closed nature of the warehouse: new employees should work in the warehouse for one month upon joining, and business personnel should spend one week each year working in the warehouse. This ensures that outsiders are constantly entering the warehouse.

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