In an era where businesses are looking to reduce costs and increase profits, each arm of a business needs to be streamlined. A firm’s warehouse is no different; manual checks can only take efficiency, consistency and quality control so far.
As a result, many firms are using warehouse management software to automate many of the tasks found in a warehouse environment, such as order processing and fulfilment. In addition, warehouse software has the potential to reduce labour, error and inventory costs as well as make the most of a warehouse’s space.
With that in mind, what are some of the biggest benefits of warehouse management software?
Labour costs
By centralising warehouse tasks, warehouse management software can help businesses save on labour costs; commonly known as one of the largest parts of a warehouse’s operating expenses. For example, software ensures picking is automatically directed electronically, reducing the time spent searching for items on a warehouse shelf.
Many warehouses still use paper-based processes for picking and shipping information; a time-consuming and error-laden venture. However automated data-gathering with hand-held scanners, bar-code readers and more can help to reduce errors and make your warehouse more efficient.
Accuracy
Accuracy is a factor of incredible importance, especially when an increasing number of warehouses and distribution centres are being used thanks to the rise of ecommerce. With manual data entry comes errors; it’s just the nature of the beast. However, if data is transferred electronically, the opportunity for errors is significantly reduced.
As a result, order cycle times and dock-to-stock cycle times will go down while shipping accuracy rates, pick accuracy rates, order fulfilment accuracy and order rates are likely to go up.
Consistency is also a big factor in streamlining warehouse efficiency. With warehouse software, everyone has to handle the inventory in the same way, which leads to consistency in record keeping and ease of worker management. It also helps during transition periods such as the hiring of a new warehouse manager.
Management
Warehouse software is also integral to managing the warehouse as a whole. Software helps firms respond faster to the demands of their customers and the market as a whole, increasing customer satisfaction. For instance, central software can help managers decide which products need to be ordered in larger quantities, which items need to be reduced in quantity, which month produces the most orders and more. By producing these figures, warehouses can forecast the need (or lack of need) for items in the future, thus maximising profitability.
Having the right products in stock for customers and being able to ship them quickly is the key to customer satisfaction; something warehouse software is instrumental in delivering.
The advantages of using warehouse management software are numerous. As well as improving overall business operations and profitability, warehouse management software can improve decision-making, reduce errors and increase customer satisfaction. What’s not to like?
About the author:
Written by Logistex (www.logistex.com). We are warehouse technology specialists.