We often talk about the tangible benefits of a warehouse management system and how it is fairly easy to measure the return on investment of these tangible benefits. Many times we get caught up in the savings a company can realize by creating accurate inventories or efficient picking processes that we lose sight of some of the most important things a warehouse management system can deliver. Here is a short list of intangible benefits as well:
- More efficient use of lift trucks will preclude the need to purchase additional equipment.
- Cycle count routines will be more accurate and less time consuming.
- Improved customer service as a result of accurate, real-time data
- Job enrichment for users.
- A sense of value in improving operations.
- Reduced floor space as a result of faster throughput.
- Tighter purchasing procedures through more timely visibility of vendors incoming products
- Automatic cross-docking for critical deliveries.
- Real-time visibility of goods/materials received can eliminate “stock out” situations
- Automatic order sequencing by shipping routes.
- Eliminate error prone pick lists and paper trails.
- Reduce or eliminate checking process during order packaging.
- Increased sales due to ability to trust inventory
- Better data can provide management with tools to improve and grow business
Each and every company will have a list that is specific to their business or industry. The fact remains that these benefits, while harder to measure, will accelerate a company’s ROI when purchasing and implementing a warehouse management system.
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Posted by iCepts Technology Group, Inc. a HighJump Warehouse Edge Partner in Pennsylvania.
Warehouse Management Systems are becoming popular as supply chain logistics become ever more complicated along with increasing customer demands. With an escalating volume of inventory movement, many organizations are turning to technology to streamline operations and meet these challenges. Seamless Enterprise Systems to WMS Integration can help your company reach its supply chain operational goals.
Advanced technology through Warehouse Management Systems (WMS) allow companies to respond to evolving market pressures and deliver on ever-shrinking time to delivery windows. These systems efficiently capture every scan, every movement of inventory and are designed to make both accuracies along with cost reduction a top priority.
Improving the speed and accuracy of the fulfillment process and reducing the cost of labor are the key issues that distribution and warehouse-related businesses face. Gaining control over these issues requires technology that optimizes the utilization of your people and your assets–more than an automated data collection system that simply extends the paper processes leveraged from within some ERP System. ERP systems typically have extensive financial and inventory control functionality, however, not enough capabilities when advanced warehouse demands are required.
HighJump Warehouse Edge was built to empower you to automate your warehouse using tools like conveyors, carousels, sophisticated picking algorithms, advance replenishment methods, and order allocation, delivered in a simple, intuitive solution that can be implemented quickly and efficiently-providing your company the advanced warehousing inventory control functionality you need.
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Posted by iCepts Technology Group, Inc. A HighJump Partner in the United States.
As supply chains continue to get more automated to streamline inventory, through the use of technology and utilizing best practices in operations, accuracy naturally beings to improve. However, not every warehouse is automated and for various reason, If the physical inventory “on the books” and the physical inventory in a warehouse do not match, the situation is often chaotic. For example, when a picker goes to retrieve a part and it is not there (or not enough is there), a series of manual checks and back tracking must be completed to fix the problem and get the order out the door. The importance of warehouse inventory accuracy cannot be underestimated when you consider that your inventory could be the largest asset to a company. Inaccurate inventory record accuracy results in having wide impact on other system and areas in warehousing including:
- Poor buying practices and excess safety stock associated to buyers lack of confidence in record accuracy.
- Delays in order fulfillment associated to lost or misplaced product.
- Lost sales due to stock outs and over commitments.
- Costs associated to placing and managing back orders.
- Lower labor productivity associated to searching for lost product.
- Potentially higher freight costs resulting from expediting shipments to customers.
These issues could result in excess inventory, which ties up capital and negatively impacts capacity. The results are higher costs, low productivity and bad customer service. The self-checking nature of advanced warehousing technology such as Warehouse Management Systems or WMS, in addition to a good cycle counting program, ensures inventory accuracy of 99+%. This high level of inventory accuracy is the foundation for a majority of the other benefits realized in using a WMS.
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