Due to WMS downtime, warehouses typically lose at least 5% (InTech) of productivity, sometimes as much as 20%. Inefficiencies and disruptions in the production process can significantly impact a business’s productivity and profitability. It’s crucial to strive for ways to reduce downtime and increase efficiency continuously.
Reducing downtime in warehousing is vital for maintaining contribution margins, just as much as maximising quality and output.
Take control of your production costs by tracking and categorising every downtime instance. Analyse the associated costs, pinpoint inefficiencies and implement solutions that minimise downtime and maximise efficiency.
Unlock the full potential of this technology by reading on. Boost productivity, increase profits and cut costs today.
Downtime with On-Premise WMS
According to the Vanson Bourne Research Study, roughly 82% of companies that have experienced unplanned downtime over the past three years have experienced outages that lasted an average of four hours.
Several reasons why on-premise systems may experience more downtime compared to cloud systems.
Firstly, with an on-premise system, the company using the system is responsible for maintaining and updating the hardware and software infrastructure. Don’t let time-consuming and complex tasks slow you down. Tackle them head-on to avoid technical issues and costly downtime.
Secondly, on-premise systems are built with a different level of availability, whereas cloud systems can scale to suit the required needs, on-premise solutions cannot. Don’t leave your systems exposed to failure and downtime. Keep them updated and maintained for optimal performance.
Finally, on-premise systems are typically accessed from a single location, so if the location experiences a natural disaster or another event that disrupts operations, the system may be unavailable.
The Cost of WMS Downtime
Unplanned downtime can lead to a decline in the operation of warehouse picks, resulting in a loss of orders and revenue for a company. The cost of unplanned downtime is also compounded by its impact on employees and the inability to continue to operate.
To calculate the cost of unplanned downtime for a company, you can follow these steps:
- Determine the number of operating hours per day: Maximise warehouse uptime by reducing unplanned downtime.
- Calculate the average number of products picked per hour: Maximise production efficiency by tracking the average number of units picked per hour.
- Determine the total hours of unplanned downtime: Track and minimise unplanned downtime caused by technical issues or maintenance with total downtime time.
- Calculate the cost of unplanned downtime: To do this, divide the total picked sales revenue by the number of picks completed hours per day. Calculate the cost of unplanned downtime by multiplying the average sales revenue per hour by the total hours of downtime.
For example, if a company has £300,000 in picked orders throughout an eight-hour shift. This amounts to £37,500 in sales orders created per hour. If the company experiences six hours of unplanned downtime, the total cost of unplanned downtime would be £225,000 (6 hours x £37,500/hour).
Eliminate costly system problems and ensure 99% uptime with a new and improved solution. Boost production efficiency, delight customers and boost revenue.
Minimal WMS Downtime with a Cloud Solution
Firstly, with a cloud system, the software and hardware infrastructure are maintained and managed by the cloud provider, not the company using the system. By eliminating the need for in-house maintenance and updates, you will reduce the risk of downtime caused by technical issues.
Additionally, cloud systems are also designed with high availability in mind, built to minimise downtime due to system failures or maintenance.
Plus, cloud providers use online servers and other infrastructure to ensure the system remains available even in case of component failure.
Finally, cloud systems are accessed over the internet, allowing remote access from anywhere with an internet connection. Stay operational during disruptions with this feature that enables remote access for employees in case of natural disasters or other events.
Conclusion
Cloud WMS solutions are the future of warehouse management. They offer businesses the flexibility and scalability they need to manage their warehouses with minimal downtime. With the right solution, companies can enjoy increased efficiency, improved inventory control, and reduced storage costs.
Overall, the combination of maintenance and infrastructure management by the cloud provider, high availability design, and remote access can contribute to reduced downtime for cloud-based WMS systems.
Choosing the right one is essential if you’re looking for a cloud WMS solution. Make sure to research the features offered by the solution and the cost and customer service. You can enjoy all the benefits of cloud-based WMS and say goodbye to mass downtime with the correct answer.
Implementing a cloud-native WMS like Clarus WMS can help to streamline and optimise the various processes involved in manufacturing and distribution.
By automating and tracking the movement and storage of materials, a WMS can help to reduce the risk of unplanned downtime and improve the overall efficiency of a manufacturing operation. Book some time in if you’re interested in finding out more.
