A WMS (Warehouse Management System) helps your warehouse run more efficiently. But some business owners shy away from implementing one because of the high cost.
However, if you don’t invest in a WMS program, you may be sacrificing time and profit in other areas. From wasting time on cargo handoffs, to surplus inventory, here are some of the issues that warehouses without WMS encounter.
Crowded Loading Dock
Depending on the volume of goods that your business ships, crowded loading docks can be a problem. That’s because, without a WMS’s advanced RFID reading and warehouse layout, your pickers may struggle to fulfill last minute orders and to double-check their work. What’s more, relying on manual cargo checks and counting can add on to the time it takes for your shipper to get moving.
On a good day, everything moves quickly. On a bad day, your drivers get restless and impatient with how long things are taking.
WMS’s built-in inventory tracking software ensures a faster, more accurate handoff so your shipper can get moving. Instead of manual counting based on labels, barcode scanning helps staff check the accuracy of product shipments with a few clicks. A WMS ensures that there aren’t bad days — and helps your loading dock clear out quickly.
Manual Inventory Count
Speaking of manually checking orders, how many times has your warehouse stopped operation to do an inventory check? Without a WMS, warehouse owners have to stop most operations, or to enlist the help of their best employees to complete inventory.
The size of your warehouse and the efficiency of your employees can stall operations for hours. As a result, many WMS-free warehouses don’t complete inventory checks as often as they need to. Warehouse owners miss out on opportunities to capitalize on the stock they do have, while ordering additional goods when they don’t necessarily need them.
With a WMS, manual inventory count becomes a practice of the past. Using RFID and cloud-integration, warehouse owners can access real-time information about stock levels, item location, past shipments, and more. With so much up-to-date data, making purchase decisions is simple, and doesn’t rely on stopping operations on a weekly or monthly basis.
Inaccurate Picking
Inaccurate picking is a fact of life for many warehouses without a WMS. Even the best pickers can accidentally select the wrong inventory. Sometimes it’s the picker’s error, but other times, the problem results from inconsistent labeling or moved stock.
A WMS enlists the help of RFID technology, as well as barcodes, to ensure that pick orders are much more accurate. It removes the need to visually scan labels, and when integrated with real-time inventory locations, can greatly improve the speed and accuracy of pickers at all skill levels.
Overstock
Overstock costs money. Not only does purchasing additional product you don’t need hurt your wallet — housing that inventory takes valuable space away from your warehouse, limiting your ability to adapt to customer needs.
But without a WMS to provide real-time stock levels, or to anticipate what you need to order next, it’s easy to double-order. Luckily, a WMS can help you avoid redundant and unnecessary orders by providing information on your current stock.
You need a WMS
While the cost associated with implementing a WMS may seem high, your warehouse will quickly experience the benefits. Less overstock, more accurate picking, and no interruption of service to perform manual inventory checks add up to higher profits and leaner operation.
Vodigy Networks is a leading IT service provider in Minneapolis and St. Paul. We work with businesses to make technology simple, easy, and seamless. Contact us today.
