To begin with, right from suppliers to customers and inventory movements, a warehouse management system (WMS) optimizes all your warehousing operations. Usually, these systems have always been a part of much bigger and more complex distribution functions.
But now, even SMBs are recognizing the importance of a warehouse inventory management software in today’s scenario of integrated logistics, same-day delivery, and e-commerce fulfillment.
Execution of a warehouse management lets an organization to improve its competitive advantage by minimizing labor expenses, enhancing customer service, improving inventory accuracy, increasing flexibility, and responsiveness.
A warehouse management system allows a firm to manage inventory in real time, with data as existing as the latest order, shipment, or receipt and any movement in between. With help of mobility app solution, you will increase the level of tracking the flow of system at any place of world.
Here are some of the many benefits of a warehouse management system that you should consider for your logistics business.
Quicker inventory turns
A good warehouse management software can minimize your lead times by restricting inventory movement and enhancing the reliability of the inventory records, and hence supporting the just-in-time environment.
Therefore, the requirement for a safety stock will be minimized, which improves the overall inventory turnover and also the goal of the working capital management.
Effective utilization of warehouse space
Not just minimizing the safety stock needs, a warehouse management system also regularly improves available warehouse space by systematically and effectively locating the products in relation to receiving, packaging, and shipping areas.
This improved efficiency can indeed increase the productivity and cut the inventory holding expenses greatly.
Depletion on inventory paperwork
The execution of a real-time warehouse management system can greatly minimize the paperwork that is conventionally associated with warehouse functions and also makes sure timely and perfect flow of inventory and information.
All the information that is traditionally maintained as hard copies such as tickets, packaging lists, etc. can now be maintained digitally.
Enhanced cycle counting
Business can utilize a warehouse management system to note down relevant data such as particular locations, regularity of movement, etc. so that they can schedule the staff for the cycle counts in a proper and well-organized way.
Not only do these cycle counts increase the accuracy of the inventory records for future planning purposes, but also can greatly eradicate or minimize the requirement for expensive physical inventories.
Improved customer service
By optimizing the processes right from product order to shipment, businesses can more efficiently and accurately find the item availability and exact delivery dates.
In addition, it can automatically recognize and release if there are any back-ordered inventory.
Increased labor productivity
The system assists in optimizing the material flow, basically, by integrating various inventory picks into one by “Cross-docking” and also reduces returns as a result of improved shipment accuracy.
Here the comes the real part. Now that you have understood the importance and the role of a warehouse management system in the logistics business, it is now time for choosing the right system for your warehouse functions.
However, understanding the what features and functionalities to look for can actually help you choose the right one.
Do basic homework
The necessary things like your business size, distribution output, etc. you would like to offer to your customers are some of the parameters that will help you determine the kind of warehouse system you choose.
If you have friends in other businesses who implemented a warehouse management system, then ask them which systems they are utilizing for their businesses. Also, attend workshops and trade shows to understand the comprehensive range of systems that are available in your country.
The more knowledge you gain, the better for your business
Asking the right questions matters. Try these:
What can I expect during the installation process and what kind of materials will I and my business need to provide in order to ensure the perfect implementation?
What tools and techniques are available within the warehouse management system to assist me to expansion of Startup business and add value to the items and services my clients provide?
Is the system adaptable enough to grow as my business expands?
You can ask all your questions to the warehouse management system providers. Narrow the list to the suitable system providers. Meet each of them in person and clarify all your queries. This will help you choose the right one for your logistics business.
A complete guide to IoT in Logistics
A real-world example of how Smart Fleets make logistics operations a breeze to manage and supervise.
- What is smart logistics?
- What is the technology pool?
- The power of sensors and cloud
- Artificial Intelligence in logistics