What is a potential outcome of not optimizing warehouse operations?

Not optimizing warehouse operations can lead to increased holding costs. This occurs because inefficient warehouse practices can result in excess inventory being stored for longer periods. When inventory is not managed effectively, it can accumulate, leading to higher costs associated with storage, insurance, and deterioration of goods. Additionally, resources may be wasted on maintaining inventory that is not moving, which further adds to holding costs.

In contrast, improving inventory visibility, ensuring accurate customer deliveries, and achieving speedy order fulfillment are all benefits that typically arise from well-optimized warehouse operations, mitigating the risks associated with increased holding costs.