Warehouse Management(WMS)Benefit Analysis- Top Business Reasons

Warehouse Solutions - Top Business Reasons

The top 10 business reasons for a WMS

Warehouse Management System projects are technology-intensive. Although important, this technology is only a tool to solve the business challenges. The business reasons behind the project need to be at the forefront. These reasons are:

Reduced Errors. Receiving errors, stocking errors, picking errors and shipping errors are common in manual paper-based warehouses. A WMS is self-checking and ensures 100% accuracy for every transaction.

Improved Inventory Accuracy. If the inventory on the books and the physical inventory in a warehouse do not match, the situation is often chaotic. When a picker goes to pick an item and it is not there, an entire series of manual checks and backtracking is needed to fix the problem and get the order out the door. The self-checking nature of a WMS, in addition to a good cycle counting program, ensures inventory accuracy.

Increased Productivity. A WMS maximizes the time operators spend adding value to the distribution process, filling orders and receiving goods. System direction minimizes search time and dispatches operators to the best task given their equipment and current location.

Reduced Paperwork. Paperwork in a warehouse for picking and stock drastically hampers productivity. Paperless WMS applications provide real-time information, reduce the possibility of data entry errors and information delays, and improve productivity.

Improved Space Utilization. A WMS tracks every location and knows where each product can best be stored. Also, putaway can be directed to maximize space utilization.

Elimination of Physical Inventories. Poor accuracy in paper-based warehouses requires that physical inventories be taken to reconcile the system inventory to actual inventory. The inherent accuracy and cycle counting features of WMS applications eliminate the need for physical inventories.

Better Control of Workload. A WMS gives the warehouse control of the workload and provides visibility into what is coming up next. The sorting, batching and reprioritization are done with a WMS rather than having to do them manually.

Improved Labor Management and Reporting. Warehouse Management Systems possess vast reporting capabilities because every transaction is recorded. In paper-based warehouses, the only method available for tracking productivity and performance is a manual log, which is time consuming, susceptible to error and is only as good as the information each operator provides.

Support of Customer EDI Requirements. Some businesses are forced into WMS applications because of Electronic Data Interchange requirements from their customers. Trying to provide this level of detail manually would strangle a warehouse. A WMS can provide detailed information automatically when the order is shipped.

Support of Value-Added Programs (Compliance Labeling, Packaging, etc.). As with EDI, warehouses are frequently forced to provide special labeling and packaging for their customers. A WMS can provide special bar-code labeling, as well as track any value-added packaging operations required.

In summary, the primary reason for a WMS is customer service. Instant access to accurate real-time data throughout the organization allows a tremendous amount of synergy among inventory planning, sales, purchasing and customer service.

Of the more than 300,000 warehouses in the US, only about 5,000 have true Warehouse Management Systems in place. Companies that want to reduce operating costs and gain a competitive advantage in their marketplace will be introducing WMS technology into their organizations sooner rather than later.