subject: Warehouse Management Systems – 5 Ways to Make Your Business More Efficient and More Profitable [print this page] Warehouse Management Systems 5 Ways to Make Your Business More Efficient and More Profitable
Now more than ever, it's essential for you to find ways to make your business operate more efficiently. Given today's business environment, your very survival may depend upon your ability to reduce costs and increase productivity.
This article will show you how an electronic warehouse management system can help your business thrive.
Warehouse Management Systems Background
Warehouse management systems (WMS) electronically track and record the movement and storage of inventory and materials within your warehouse. This allows you to streamline your business processes.
WMS capture data electronically using barcode and RFID technologies. You gain real-time visibility and control over supply chain processes like picking, packing and shipping.
How this Benefits Your Operation
Implementing a practical warehouse management system will streamline your business and provide tangible, bottom-line benefits.
Here are 5 ways an automated system can improve your operation:
Quicker inventory turns. A WMS reduces lead times by improving inventory movement controls and making inventory records accurate in real-time. Safety stock needs are reduced and inventory turnover increases.
More efficient use of warehouse space. First, less safety stock requirement improves space utilization. Next, a WMS improves warehouse space use by allowing inventory/items to be located more efficiently relative to receiving, packing, and shipping areas. This improves productivity significantly.
Reduced paperwork. WMS substantially reduce the paperwork associated with typical warehouse operations. Reports, tickets and lists are maintained electronically virtually eliminating paper copies.
Reduced error rates. An effective WMS automates and standardizes processes like inventory movement, picking, shipping and inventory locations. This significantly reduces costs associated the errors and manual systems.
Improved customer service. An effective WMS streamlines processes from initial order to delivery to customers. You can determine product availability shipping/delivery dates more accurately. This allows you to identify and release back-ordered inventory automatically. You'll also reduce costs associated with returns because shipments will be more accurate.
You can see there are very real business benefits associated with the right warehouse management system. Given the realities of business today, it makes good sense to investigate how your business would benefit.
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