Ways Warehouse Management Systems Increase Inventory Accuracy

The proper movement of inventory in a warehouse is increasing becoming very complicated as there are more demands from your customers and volume.  As more and more transactions occur, so does the odds for errors.  Errors with inventory picking, packing or shipping always equate to loss revenue, increased labor cost and potentially unhappy or lost customers.

Wholesale Distribution organizations frequently turn to technology to solve this supply chain management challenge to keep errors at an absolute minimum through a high inventory transaction accuracy level.  Such a technology exist with Warehouse Management Systems (WMS), which are designed to ensure the highest level of inventory accuracy and efficient inventory flow through the use of advanced inventory tracking software and systems.  Below are some examples of ways warehouse management technology can increase accuracy:Warehouse Man with Scanner

1. Product Codes:  Whether you chose RFID or barcoding as a means of identifying various products, product coding greatly adds to warehouse accuracy. Pickers and packers can simply scan the items they are looking for to fill an order and immediately known if they are correct. This contributes to less accidental switches and confusion when picking and packing order.

2. Product Location:  Using a WMS solution to help design your warehouse for efficiency will help your pickers know exactly where they need to go for a product location. This reduces misplacement of items. In addition, pick times are lessened when items are arranged so that quick turnover products are close to packing and slow moving inventory is placed in lower traffic areas of the warehouse.

3. Inventory Management:  Having exact product codes and locations greatly improve the quality of the inventory data your company has for inventory management. Knowing exactly how many items are in exactly which bins, to be placed in exactly which orders, can aid in managing stock-outs, misplacements, mis-shipments and even potential theft within the warehouse. With better inventory visibility, orders can be sent faster without back-orders and costs can be cut by less inventory loss.

4. Filling Orders:  Knowing exactly where a product is in a warehouse and knowing how many are left in the bin help pickers fill orders faster. Packing can be expedited with fast-moving products closer to packing locations. In addition, scanning products help to get the orders filled correctly the first time and almost completely eliminate returns due to picking and packing mistakes.

5. Bin Replenishment:  With product data made available by scanning, bin replenishment can be made easy. The system keeps track of how many items are in each bin and slot and can be programmed with rules so that certain product numbers never drop below a certain amount. This removes the guessing from the reordering of inventory and the back-order problem when there are not enough items to fill a customer’s order.

6.  Big Retailer EDI:  When supplying products to a large retailer, it is important to provide them with correctly labeled items that will be read by the retailer’s computer system. Having incorrectly formatted labeling or no Advance Shipment Notice can result in the return of the order and a charge-back for that returned order. With product codes and inventory tracking in conjunction with EDI capabilities, order accuracy can be increased to 99.9%.

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