4 Simple Ways

Implementing a warehouse management system is one of the biggest “bang for your buck” things a warehousing or distribution company can do for the business. Although I only list four in the post there are many other ways a WMS can pay for itself.  These four are simple ideas, however many operations choose to continue running their warehouses with pen and paper even though their most successful competitors have made the investment done the work and are now reaping the rewards.

1. REDUCE STOCK.  This may seem pretty obvious but many companies carry to much inventory in order to meet customer demand.  This is caused by not knowing how much really is in the warehouse or where it is.  Nor do they have an accurate idea of how fast they are turning over their products.  With real-time data collection inventory accuracy will improve dramatically.  This leads to improved item location, quantity etc. etc.

2.  REDUCE OR RELOCATE LABOR. Overhead is costly.  A WMS will help you see what work is being done, how fast and accurately it is happening and who are your stars.  So much more will get done when you throw away the paper and pencil and use real time information to receive put-away replenish pick and ship your products.

3.  IMPROVE SHIPPING ACCURACY.  It is not uncommon to see a company using paper and pencil technology to have a high error rates on the orders they ship out.  Even a company that boats 98% accuracy is paying a lot for that 2% error rate.  Not just in the hard dollars it costs to fix the problem but also and potentially more hurtful in customer dissatisfaction.  A warehouse management system is design to eliminate costly shipping errors and help you improve customer satisfaction and even obtain new customers..

4.  SPACE UTILIZATION.  A WMS will allow you to use the warehouse space you have more efficiently by helping you store your product better.  Because you can see where all your product is and you can better decide how to use your racks and floor space.  Wasted space and empty racks are used properly keeping you from having to add-on which saves thousands of dollars.

The time for achieving a return on investment (ROI) in a warehouse management system should be relatively short.  Many companies find that the system can pay for itself in 6 to 9 months however 12 to 18 is a good rule of thumb.

So consider putting done the paper and pencil for a minute and find a company that will work with you to analyze your particular situation and see if it makes sense for your company to consider a warehouse management solution.

Download our complete whitepaper on <a href=”http://www.warehouse-management-systems-us.com/wp-content/uploads/2013/06/4SimpleWaysToPayForWMS-1.pdf” title=”4 Simple ways white paper”>4 Simple Ways to Pay For A Warehouse Management System </a>

Visit our website for more information on WMS solutions http://www.warehouse-management-systems-us.com/

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