The centrepiece of running your business is having a smooth, efficient operation that minimises the time between when the customer or retail store orders your product and when it is delivered to their location. Of course, if your warehouse management system consists of manual processes and spreadsheets you may have a considerable problem on your hands.
What is a Warehouse Management System (WMS)?
A WMS is a software application designed to help you with the daily operations of your warehouse management. The software tracks inventory, stock rotation and manages the workforce to ensure they are getting the job done. This means that you can track everything in your warehouse online so that you know what you have and where it is at 24/7. A good WMS will increase warehouse efficiency and reduce error within the warehouse which can be a huge cost saving.
Five indicators you need a new Warehouse Management System
Your Warehouse Makes Little Sense:
It’s a feeling that many business owners might have regardless of how efficiently the warehouse is run. Still, if you cannot make heads or tails out of how your warehouse operates, how items are incorporated into your inventory, identified, or shipped out it’s time for a new system.
Perhaps the most obvious sign that you need a WMS for your company is when customers are complaining about not getting their items from you in a timely manner. Thanks to large businesses like Amazon, people expect that their items will be delivered quickly once they are ordered. Once your business scales beyond 100+ orders per day you require a system to manage this in order to maintain a high level of customer service. Late deliveries will cost you customers which is something no company can afford.
Not knowing your current inventory levels:
A good way to know if you are in need of a new warehouse management system is asking the simple question of how many items you have in stock right now? A good software system will allow you to find the answer to that question in seconds. Picking an item in stock means you should know how many are available. Also, how many items are coming in and going out as well. If you cannot find out that information, it’s time to get to review your warehouse systems.
When you see some employees constantly at work while others do little in the warehouse, that may not be a sign of their work ethic. Instead, it may be an inefficient use of their time. A good WMS helps provide even distribution of responsibilities making sure the tasks with the highest priority are completed first, reducing bottlenecks within the chain.
Increasing Number of Customer Claims:
The more claims customers file against you, the more your business slows down and the less money you make. This is true when you pick and pack certain items only to have them come back because the address was wrong or the items were not reflected in the order. A good WMS eliminates many of these human errors and provides the best in stock control thanks to barcode scanners that take away the guesswork. Improve your accuracy to over 99% and the system will pay for itself in a reduction to handling miss-picks.
Good warehouse management systems straighten your inventory, increase efficiency, and make your business run more smoothly. If your business is suffering from any of the above reach out to ClarusWMS and lets talk about how we can fix them