Are you in the process of setting your budget for 2018?
Every warehouse, large and small, performs four basic functions: receiving and put away, picking and packing, shipping and inventory control. So how can you improve efficiency and make your budget go further in 2018 with a cloud WMS solution?
Taking advantage of new technologies, such as cloud warehouse management system (WMS), will not only reduce your operational costs but will also considerably improve your customer service and retention.
In today’s competitive marketplace, the primary focus of many organisations is to reduce operational costs and improve customer service. Being cheaper is not always the answer. Unless you’re in the enviable position of having a unique product that only you can provide, your customers won’t stick around for long if your competitors can fulfil orders quicker and provide a better shopping experience for them.
To reach this ideal scenario, companies are embarking on a wide range of process improvement initiatives to make their budget go further.
Did you know with a cloud WMS solution, you could:-
- Reduced picking/shipping errors
- Improved inventory count accuracy
- Increased employee productivity
- Elimination of typical warehouse paperwork
- Improved space utilisation
- Elimination of physical inventories
- Better workload control
- Improved labour management and reporting
- Compliance with customer EDI requirements
- Support for value-added customer compliance programs
- Ability to better prioritise warehouse activities for preferred customers
In order to fulfil your orders quickly and efficiently, you need a system that can interface with your e-commerce solution to take the guesswork and doubt out of stock control. This is where the WMS comes in. A properly configured WMS will enable you to track items from before their arrival to when they leave your warehouse and beyond. It will also help you make key decisions quickly by effortlessly providing you with accurate and real-time information. You can also use the data in the WMS to provide stock availability information to customers and enhance your overall service.
The implementation of the right solution can yield major cost savings, as well as increases in company profitability and ability to respond.
A number of WMS systems on the market are too big, cumbersome or expensive to meet the needs of the smaller and growing business. The upfront cost and likely implementation timescale simply put them out of reach. However, a modern cloud-based system can offer the functionality you need without big upfront costs and long timescales.
A well-designed warehouse management system (WMS) can be one of the most significant investments you can make in the overall operation of your distribution centres.
Here are a few key areas that should start showing substantial cost savings in your budget soon after implementation.
Warehouse staff costs can be extremely high when there is a large throughput of items. Implementing a WMS will mean that companies can reduce staffing costs in a number of ways. Normal operational conditions will see reductions in staffing levels and seasonal peaks in demand are more likely to be met and managed by the system as opposed to the recruitment of temporary staff.
The system will also install automated processes which will make operating staff more productive by automating tasks throughout the receiving, put-away, pick, pack, ship and returns processes as well as optimising staff schedules. Schedules built from real-time order trending data will give a much more accurate view of exactly when and where staff is needed and when you can operate at lower levels. This can lead to more flexible and cost-effective workforce planning and reduce employee downtime.
Warehouse management software that deliver a common data stream across warehouse operations and automate order pick systems using barcode and RFID scanners can eliminate mistakes through the entire pick, pack and ship processes which can significantly improve order accuracy. This can reduce or eliminate costly replacement orders that disrupt normal warehouse operations – and impact overall customer satisfaction.
A WMS software’s ability to provide better real-time visibility into inventory levels can give you a significantly cost saving. The WMS will provide the customer with the goods they want; at the time they want them. System driven routines monitor stock levels accurately and can be responsible for placing timely orders that ensure stock is always available to the customer. An inventory that can be depended upon means that an organisation can reduce inventory levels to the bare minimum and see the benefit of reduced operating costs as a result. In some organisations those costs can be reduced by as much as 12%.
Better return processing
The unpredictable nature of returns processing often makes it one of the most challenging and costly processes in the distribution centre. Without a firmly established, automated inspection and dispositioning process in place, proper customer credit reconciliation and final product dispositioning can be a time wasting, inefficient process plagued with missed opportunities for cost recovery. On the other hand, a well-designed, comprehensive returns management operation, fuelled by the right technology and process, can lead to significant savings from products that can be resold or returned to the original manufacturer for credit.
How much of your budget are you letting slip away?
As discussed earlier, there are substantial benefits and savings you can make by implementing a cloud WMS. The WMS concept is now a matured time-tested technology that has brought substantial benefits to many companies large and small.
By implementing WMS technology with an integrated back-office accounting system, organisations can achieve a higher return on their budget during 2018 and provide the best possible service to their customers. A WMS can provide an organisation with tangible benefits that quickly and dramatically improve warehouse operations and increase material management efficiencies without adding headcount
Speak to one of our team to understand how Clarus’ WMS system can cost effectively support best practice warehouse management processes, better customer service and highly efficient working for a range of warehouse operations with pay per month options and no IT infrastructure needed.
Our platform can scale from a one user, small depot system to a 100’s of user distribution centre operation. The ClarusWMS platform will cost effectively scale with your business based on demand.
ClarusWMS is a UK based supplier of warehouse management solutions with a wealth of industry experience in third party logistics, wholesale / retail distribution, online fulfillment and manufacturing warehousing.