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Benefits of Warehouse Management System

Jan 3, 2018

A modern-day warehouse has to deal with large volumes of goods flowing in and out of it. The warehouse also has to manage recording item details, where it is stored, where it is to be sent among others. Manual systems may not be able to cope with such large volumes of data which has to be processed and retrieved instantaneously. This is where a proper warehouse management system (WMS) can contribute to increasing the efficiency of warehouse and in turn contribute to the company’s supply chain. A warehouse management system can be a standalone application or a part of an ERP system which enables centralized management of tasks SE_Demo2regarding inventory tracking and processing. Numerous have elevated the capabilities of warehouse management system to perform data-intensive tasks and incorporate RFID and voice recognition technology to enable automation.

Benefits of warehouse management systems

Space savings

Reducing the amount of clutter and properly organizing stocks can lead to savings in warehouse space. A warehouse management system allows the warehouses to properly organize the goods in such a manner that they take up less space. Enabling accurate stocking, slotting, and pulling of orders gives in-depth insights to companies in how much stock is needed so that they can procure only the required amount and avoid overstocking.

Reduces equipment wear and tear

Warehouses are filled with stocking and moving equipment including trucks, pallet jacks, forklifts, and carts. The more these equipment are used in a single day; the more vulnerable they are to wear and tear decreasing the life expectancy of the equipment. Increasing the machine idle time will ensure that the machines last longer. So, a warehouse management system can increase the machine idle time by eliminating the need to stock, pick and reset unnecessarily. They do so by reducing redundant picking routes, managing inventory optimally, and decreasing the per-equipment cost of shipping.

Reduces security vulnerabilities

Security is of the utmost importance in a warehouse. There might be instances of pilferage and theft within the warehouse by employees, which can be easily manipulated by changing stock numbers in a record keeping system. An effective warehouse management system will keep up-to-date records of inventory and provide authorized access to specific users. Instances of tampering can be easily identified with user-specific logins. Furthermore, automated systems like RFID can effectively eliminate such activities by keeping real-time information on inventory levels.

Increases customer satisfaction

A proper warehouse management system keeps accurate track of inventory levels and reduces errors in order fulfillment process. Eliminating such errors means that wrong deliveries are avoided, which would result in dissatisfied customer and increased costs in terms of reverse logistics. It results in goods getting delivered in proper condition to the correct customer each time, which increases the customer satisfaction levels and decreases the number of customer complaints.

Boosts workforce productivity

A typical warehouse is a very busy place with workers hustling and bustling to receive, stock, and dispatch items. A typical worker would have to move around a lot making multiple trips to the same place and also making additional trips to rectify errors. A warehouse management system reduces such errors and ensures optimal stocking so that workers would have to move around less within a warehouse. Additionally, it also reduces overexertion and allows workers to pick up more items in less time thereby increasing efficiency in order fulfillment. This may also result in the organization needing lesser workforce due to higher productivity gains saving them in labor costs.

For more information on benefits of warehouse management systems (WMS), warehouse control systems, inventory management software, facilities management, WMS solutions, and logistics and supply chain management:

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