Top 10 Benefits of Warehouse Management System
A Warehouse Management System (WMS) is becoming critical to ensure that processes are carried out accurately and efficiently. Most tasks in warehouse management are linked; one small stock control problem can lead to late delivery to a customer. Poor inventory management, inadequate management information, error-prone documentation, high labour costs and seasonal fluctuations are all individual problems.
When two or more problems collide, they can derail warehouse operations. Poor inventory accuracy leads to stockouts, causes picking problems and can lead to failed deliveries and disappointing customers. Obsolete stock is costly and takes up space. How accurate is your current inventory system? Redundant processes waste time and money. They occur in the handling of incoming deliveries and returns, put-away, picking and packing processes. Space and labour can constitute up to 65% of the warehouse operating budget in a labour-intensive environment.
- Best Practices
- Benefits of Warehouse Management System
- Cloud-Powered WMS with Security
- Barcode and RFID Revolution
- Simplifying Goods Tracking
- Boosting Automation for Efficiency
- WMS Enhances Customer Service
- Space Savings through Inventory Management
- Efficiency Gains for Equipment and Workers
- Optimize Warehouse Processes with WMS
- Achieving Higher Volumes with Efficiency
- Leveraging Efficiency for Higher Volume
Warehouse management system requires a commitment to best practices and may seem complex, but it can lower expenses, improve customer service, and boost warehouse operational efficiency when done well. Adopting practical warehousing principles makes it simple to improve warehouse operations.
Efficient Warehouse Management
A warehouse management system (WMS) is the foundation for an efficient warehouse. An effective warehouse management system solution will improve all aspects of inventory management and order management, allowing for efficient warehouse operations around receiving/putaway/replenishments and order picking processes. In addition, it can connect to your ERP, TMS, and other systems to keep your inventory in sync; while boosting accuracy, lowering expenses, and enhancing customer satisfaction. The best-in-class approach to a WMS, means you have the best possible solution to meet warehouse requirements.
Impact of Warehouse Technology
Warehouse technology has lowered operational expenses by eliminating the need for paper operations (since enterprises don’t have to spend money on paper, related stationery, or the supply of pre-printed documents). It has also helped to improve sustainability (green), as warehousing operations now consume fewer forestry resources. Moving your warehouse to real-time operations improves all aspects of your business both in the warehouse and in the systems connected to the warehouse.
Data Recording for Productivity
Automatically recording data can boost productivity and accuracy while lowering personnel costs. Using barcodes and radio frequency identification tags to capture real-time information can help get products off the dock faster and eliminate human errors like counting and data entry from the tracking process.
Refining the Returns Process
Returns are an unavoidable element of running a company. For example, over 30% of all online orders are returned, and if not handled properly, they can affect your bottom line. That’s reason enough to refine your returns process. It is important for the WMS system to integrate into the return source (customer service system) for recording inventory disposition (i.e., damage, return-to-stock, etc.). Returned inventory needs to be handled efficiently and accurately.
Digital Records for Efficiency
Keeping records on paper and in files is a time-consuming activity that wastes space. All warehouse data and reports can be digitally saved on a remote location server or cloud-based storage for the same reason. It allows customers to create a backup of inventory, sales, billing, and other data that can be referred to at any time in the future. Also, this information can be used for re-warehousing, slotting, and other activities around warehouse space utilization.
Cost Efficiency through New Technologies
Over time, new technologies should lower your costs and increase efficiency and profits. Analyzing your profitability per customer account or product line is one of the finest techniques to measure cost efficiency.
Investing in Cost-Saving Technologies
If your analysis shows that a specific technology could help you save money while serving your clients, it may be wise to invest. Your ROI would improve tremendously once the cost of the program has been amortized.
Benefits of Warehouse Management System
Cloud-Powered WMS with Security
The latest benefits of warehouse management system software combine all the power of cloud technology with high levels of security. You can access inventories, track consignments, assign tasks and match up invoices from several different devices wherever you are. Not only do you get access to higher levels of integration, but it is much easier with intuitive systems to achieve what you need to make your storage business work better for you. That means there is less training for staff using the system while overall productivity is greatly improved.
Barcode and RFID Revolution
Other benefits of Warehouse Management System are the major transformations in the last five or six years with barcode and RFID technology. Combined with the latest technology, one of the benefits of warehouse management system gives you pinpoint accuracy when dealing with goods – you’ll know exactly where to find, pick and when to pack any inventory. That not only speeds processes up but can mean that your staff are almost always working at the height of efficiency at all times.
Simplifying Goods Tracking
Keeping track of goods coming in and out of your warehouse can be challenging without the appropriate software. Time spent trying to locate goods if there’s an order or finding the right storage place when something comes in from a client or supplier is much simpler with the WMS upgrades.
Boosting Automation for Efficiency
Automation is key for many busy warehouse operations and the more it can be achieved, the better the productivity and speed of your service. The latest WMS software again allows you to integrate almost fully with these processes while keeping you informed of what is going on.
WMS Enhances Customer Service
Other Benefits of Warehouse Management System is that it also promotes customer satisfaction and service by reducing errors in the order fulfilment process. Also, the system ensures customers receive undamaged products promptly. Thus, the number of customer complaints decreases and improves operations
Space Savings through Inventory Management
When inventory is managed correctly, warehouse space can be saved. In other words, it enables accurate stocking, slotting and pulling of orders, giving companies the opportunity to gain higher-level insights into how much of each item is truly needed. Therefore, they can reduce overstock and minimize understock simultaneously to save space.
Efficiency Gains for Equipment and Workers
Forklifts, trucks, pallet jacks and carts represent a fraction of the equipment used in warehousing. Unfortunately, this equipment tends to have a low life expectancy due to wear and tear from inefficient stocking, picking, and resetting processes. However, one of the benefits of Warehouse Management System is that it can improve efficiency, reducing redundancies in picking routes and decreasing the per-equipment cost of shipping and managing inventory.
Optimize Warehouse Processes with WMS
Similar to equipment improvements, a WMS can have significant benefits for workers as well. For example, workers that know exactly where products are shelved can reduce extra walking time, reducing the risk of overexertion and ensuring continued productivity in your warehouse. Moreover, workers can pick more orders in less time, increasing overall profit margins and efficiency in order fulfilment.
Achieving Higher Volumes with Efficiency
Choosing the correct WMS for your business will allow you to seamlessly optimize your processes within the warehouse. That means not only finding the right processes to suit your business itself but also those that fit the types of materials you manage. There are many ways to pick material based on those parameters, and an intelligent WMS selection will allow you to incorporate a variety of algorithms, including wave, zone, and batch picking
Leveraging Efficiency for Higher Volume
The more effective you can make your team and inventory oversight, the higher the volume you can achieve. The higher that volume, the fewer individuals you’ll need to be allocated to your supply chain node. It’s a self-fulfilling prophecy regarding lean operation, and it’s a goal well worth pursuing for the sake of your bottom line.
A Warehouse Management System (WMS) is becoming critical to ensure that processes are carried out accurately and efficiently. The latest benefits of warehouse management system software combine all the power of cloud technology with high levels of security.
Other benefits of Warehouse Management System are the major transformations in the last five or six years with barcode and RFID technology. Combined with the latest technology, one of the benefits of warehouse management system gives you pinpoint accuracy when dealing with goods – you’ll know exactly where to find, pick and when to pack any inventory.
Other Benefits of Warehouse Management System is that it also promotes customer satisfaction and service by reducing errors in the order fulfilment process. However, one of the benefits of Warehouse Management System is that it can improve efficiency, reducing redundancies in picking routes and decreasing the per-equipment cost of shipping and managing inventory.