Top 8 benefits of a Warehouse Management System

Hello!

A warehouse management system has the potential to save your company money and help improve warehouse efficiency. Learn how a WMS can benefit your company.

With the growth of e-commerce and customers’ expectations for fast front-door deliveries, getting inventory to the right places and creating efficiencies in how that stock is moved and stored has become essential. The right warehouse management system can help achieve exactly that.

A warehouse management system (WMS) supports businesses ranging from small organizations to large global enterprises by streamlining operations, enhancing accuracy, and adapting to modern supply-chain demands.

Top 8 benefits of a warehouse management system

1. Makes social distancing possible

A warehouse management system can make social distancing—one of the most important considerations in warehouses today—simpler and more effective.

Warehouse management systems empower employees to maintain appropriate distances while performing their tasks, helping keep them safe and limiting the spread of COVID-19, stated Ashish Chaturvedi, chief analyst at ISG, a global technology research and advisory firm in Stamford, Conn.

Warehouse management applications can account for employee spacing requirements when assigning tasks. The system can also optimize stock placements and picking paths so that warehouse workers have minimal physical interaction.

2. Offers real-time inventory data

A warehouse management system’s data gives workers the inventory information they need, exactly when they need it.

As many warehouses now function as e-commerce fulfillment centers, the traditional “pallets in, pallets out” cross-docking model has shifted toward a focus on individual order fulfillment, Chaturvedi noted.

A WMS can read serial codes and track every item from the moment it enters the warehouse through to its movement on the floor. This real-time visibility speeds up the outbound shipping process, Chaturvedi added.

The same inventory data also helps improve customer satisfaction. WMS scanning enhances pick accuracy, which directly supports better service levels, stated Dave Treadway, an associate partner at Clarkston Consulting in Durham, N.C.

Like many companies, Magid Glove & Safety relies on a warehouse management system to maintain accurate inventory records, explained Dave Forberg, vice president of operations at Magid, a manufacturer and distributor of personal protective equipment in Romeoville, Ill.

Magid uses a homegrown WMS together with Vormittag Associates Inc.’s S2K warehouse management solution. The system’s real-time cycle counting allows the company to skip an annual physical inventory, Forberg said, while still providing precise data on stock levels in every location.

Also read: Top 6 Tips to Stay Focused on Your Financial Goals

3. Reduces operating costs

A warehouse management system can also help lower operating expenses.

“A warehouse’s operating costs are offset when staff can use a WMS to calculate the best locations for goods, equipment, and materials,” Treadway explained.

Better inventory visibility enables companies to reduce safety stock and minimize waste. A WMS supports first-in, first-out rotation, ensuring the earliest-dated perishables ship first, Chaturvedi noted.

4. Improves demand forecasts

By delivering clearer inventory visibility, a WMS helps companies create more accurate demand forecasts. The system can analyze current inbound and outbound movements along with historical trends to generate reliable predictions, allowing warehouse teams to maintain optimal stock levels.

5. Creates efficiencies for specific goals

A warehouse management system can prioritize what matters most for any given operation—whether that means assigning the right people to the right tasks, designing the most efficient warehouse paths, or meeting a specific deadline.

“A WMS uses labor forecasting to assign the right workers to the right equipment at the right times so they can efficiently perform necessary tasks,” Treadway said.

Modern systems also include floor simulators that help managers plan warehouse layouts more effectively, according to Chaturvedi.

“A good example is a tight deadline for getting inventory ready for a FedEx pickup at a specific time,” said George Lawrie, an analyst at Forrester Research. Instead of optimizing solely for volume or routing, the WMS can focus on meeting that exact cutoff.

6. Improves traceability

A company can leverage a WMS’s tracking capabilities during a crisis or recall situation.

Firms can use warehouse management systems to trace inventory by lot and serial numbers, Treadway said—information that becomes critical when recalls occur.

This capability is especially vital in the food industry. “We need the warehouse management system to trace us down to the specific lot,” said Rick Martinez, vice president of operations at Plymouth Inc., a wholesale food distributor in Auburn, Wash., that supplies poultry, meat, fish, and refrigerated products across Washington, Oregon, and parts of Idaho. Plymouth uses the Latitude WMS from PathGuide.

“If there are any questions about what area of the warehouse an item came from or what date it arrived, the WMS becomes the backbone of any recall exercise,” Martinez added.

7. Improves employee morale

A warehouse management system can enhance the employee experience by automating repetitive manual tasks. “Automation has the potential to make workers happier because they can use their time more effectively, which also reduces overtime,” said Alan Salton, director of innovation at Panorama Consulting Group.

8. Enables digital transformation

Companies can use a WMS to modernize operations in ways that would otherwise be impossible. Implementation does not have to happen all at once.

“A company can choose to roll out its WMS in phases so it can adopt the latest technology and operate as efficiently as possible,” Treadway said.

The next phase often involves integrating the WMS with other systems such as ERP or MRP platforms, enabling seamless data sharing and further refinement of warehouse operations. When the WMS is cloud-based, updates occur automatically, delivering continuous real-time efficiencies and visibility.

Also read:

• 5 Secure Ways of Passive Income to Add to Your Savings
• The Ultimate Guide to Digital Marketing for Auto Repair Shops
• Here’s What Parents Should Know About Monitoring Apps

Thank you!
Join us on social networks!
See you!