The supply chain has changed dramatically over the last 10 years in so many ways that it can be hard for some to keep up with. Increases in freight and transportation have made these costs higher than distribution center labor in many businesses.
One way to get ahead of this constantly changing landscape is using robust Warehouse Management Systems (WMS). Not all Warehouse Management Systems (WMS) are alike.
There is no one-size-fits-all approach to choosing warehouse management systems since every business will have different needs based on products, computer systems, and so on. Regardless of the type of WMS you use, however, the advantages it can bring will remain constant.
Benefits of Using the Right Warehouse Management Systems (WMS)
Warehouse management systems has many moving parts. From inventory and shipping to customer management and security, for many looking to optimize their operation overall, a warehouse management system (WMS) is key. By automating a variety of processes, this type of software can significantly reduce human error, maximize efficiency and productivity, and have a positive impact on the business overall.
Reduce Operating Expenses
A well-designed WMS reduces operating expenses in a variety of ways. This type of system determines the most effective use of labor and space, which reduces waste. Expiring and perishable items are picked first, and item locations are optimized to streamline picking and putting-away efforts. This all adds up to considerable savings over the course of a fiscal year.
Improve Customer Service
Your warehouse is integral to your customers’ buying experience. Will the products your customers need be in stock? Will customers get what they ordered, when and where they need it? For distributors using WMS, the answer is yes. By improving picking accuracy, shipments are done right the first time. Consistent error-free shipments mean happy and loyal customers.
Distributors using WMS have found that real-time warehouse management allows existing warehouse people to crank out more work in less time. The system also gives them better inventory control so they can stock more of what’s hot and less of what’s not.
They get more out of every dollar they spend on labor, and have a higher return on every square foot of warehouse space. New employees are significantly easier to train, and existing employees don’t want to look back.
Most warehouse management programs require employees to use individual user accounts when entering transactions. This creates an audit trail that connects specific employees to specific transactions, which improves accountability and reduces the risk of theft and other issues. It also allows employers to identify new training opportunities and other ways to improve employee practices.
A bad WMS can cost you in inventory, as well. Inventory, when stored in the proper environment and used in the best order, eliminates scrap, waste, and obsolescence.
With solid, trustworthy records, you’ll never have to worry about keeping too much safety stock on hand or shooting yourself in the foot by running short of a SKU during a “crunch” period. This supports your company achieving the cost and efficiency savings of a just-in-time strategy.
Warehouse management systems provide complete transparency for on-hand balances and inventory usage, which allows suppliers to more effectively map out their own processes. This results in reduced lead times and helps minimize the risk of ending up with costly excess inventory. Additionally, since employees have access to real-time data, they’re able to provide more accurate information to customers in a timely fashion.
Improve Relations with Customers and Suppliers
The benefits of warehouse managements systems extend beyond the organization itself. Supply and demand chains are optimized, which means fewer long waits for suppliers at docks and loading bays. Customers enjoy reduced delivery lead times and fewer order inaccuracies. The reputation of your business among customers and suppliers will improve under such a system.
We can perform all functions that a public warehouse company can. However, Nebraska Warehouse – Omaha 3PL Public Warehousing Company is more. As a member of the International Warehouse and Logistics Association, we hold ourselves to a higher standard.
3PLs offer expertise that manufacturers, distributors and shippers can tap into, allowing users to achieve supply chain solutions with their customers that minimize total delivered costs.
The efficiencies generated by outsourcing logistics has made it extremely popular. Recent studies show that fully 80 percent of Fortune 500 companies outsource at least one function – the largest such number in history.
Benefits of Using a 3PL
- Reduced total delivered cost for your customer
- Local expertise in new markets
- Improved customer service through shorter shipment times
- Reduced inventory costs through better management
- Cost benefits through volume shipping discounts
- Improved focus on core competency
- Increased shipment visibility
- More scalable logistics operation and cost model
- Improved variety of technology and service
- Risk reduction
- Increased expertise in supply chain security