A warehouse has six fundamental processes: receiving, disposal, storage, picking, packing, and shipping. A warehouse management system allows you to optimize all six processes, reduce cost and errors, streamline your operation, and achieve a higher-order rate.
One of the reasons warehouse companies consider the warehouse management system is its numerous benefits. Here is the list.
Optimized space
A warehouse is required to store a wide range of inventory which differs in dimensions and weight. One of the advantages of using a warehouse management system is it analyses the best use of space for the inventory based on its dimensions and characteristics.
In warehouse management system implementation, you can enter the dimensions of various items stored in the warehouse. The system will create a storage plan to ensure the available space is used in the best possible way, and there is no wastage. It also ensures your warehouse staff does not waste time locating the product.
The WMS provides many benefits by bringing operational efficiency and optimized use of space. It also helps in increased asset utilization and enhanced productivity.
Lower operating expenses
The WMS solution can help warehouse companies in maintaining material rotation by following Last-In-First-Out (LIFO), First-In-First-Out (FIFO), or First Expired First-Out (FEFO) practices.
LIFO helps in cost-effective storage space and movement, while FEFO and FIFO help maintains aging-out items’ quality. WMS systems have fuzzy logic that reduces FEFO or FIFO moves. For example, the staff can be directed to pick items expiring in the same month.
A WMS operates with flexibility and versatility and allows businesses to make any adjustments to choose a correct inventory pick and maintain the best inventory floor location selection to help manage the physical movement of stock and improve workers’ performance.
In addition, by determining the best location to store various products, materials, and equipment, the WMS helps in lowering the operating expenses.
Inventory visibility
The WMS provides accurate and real-time visibility of the inventory levels. It enables companies to avoid backorders and securely estimate supply, leading to more satisfied customers.
The WMS automation is accompanied by RFID scanning or other location-tracking methods; companies can get complete visibility of the inventory in all warehouse corners, which helps reduce inventory lost, forgotten, or misplaced instances.
The WMS can be integrated with ERP for forecasting demands and sharing information on how the products are performing. In addition, it allows both systems to work in conjunction for better decision-making on seasonality and product demand by analyzing past transaction data. All this can help companies mitigate losses and increase revenue.
Effective labor
Another reason for considering a warehouse management system is achieving labor efficiency and reducing labor costs. The WMS can assign each person the right task at the right moment for practical labor usage.
Optimization of travel time is crucial, and WMS can play an important role in improved labor utilization. The WMS can also focus on the highest impact activities while choosing the most suitable labor for any specific task.
WMS has a labor forecasting feature that allows companies to efficiently design work schedules and assign jobs daily. However, scanning items during the inbound process and maintaining their details during their movement in the warehouse can be difficult and time-consuming. Also, double-checking things for accuracy and recording can make the workflow slow.
The warehouse management system has features that automatically scan the barcodes when items enter the warehouse, eliminating manual scanning. Also, its advanced feature can direct workers to pick the right things, thereby avoiding mispicks, improving pick accuracy, and ensuring higher customer satisfaction levels.
WMS can utilize KPIs to analyze staffing and make workflow changes to bring labor and equipment efficiency through optimized work assignments.
