So you’ve made the decision to implement a warehouse management system (WMS). Eliminating tedious and time-consuming inventory tasks will lower labor costs and raise employee morale, making everyone happy. But if pleasing everyone from floor workers to managers in one fell swoop sounds like the Holy Grail, we have outstanding news.
There are at least five measurable benefits of implementing a WMS solution other than decreased labor costs and improved morale. Knowing what they are will make it easier to choose which platform or provider is best for your needs, so let’s get started.
Reduced storage needs per product category
Precision inventory data opens up unprecedented opportunities to use space more efficiently. You won’t be forced to leave pallets open for unexpected or emergency shipments, which means you’ll have more capacity for other revenue-generating materials.
If you’re not convinced that decreasing storage space should be a top priority, consider that within certain industries the cost per square foot to lease a warehouse has doubled in recent years. Business owners who own their space outright can re-frame the cost by calculating the average revenue per square foot and comparing that to the average amount of space allotted for overstocked products.
More consistent cash flow
As your WMS becomes deeply ingrained into every aspect of your operation, between the time materials arrive on trucks and finished products are shipped out will shrink dramatically. Your warehouse will become a well-oiled machine, your balance sheets won’t contain any surprises, and you’ll know exactly how much growth is possible.
A better understanding of inventory levels and demand means less reliance on safety stock and more opportunities to introduce new products or increase capacity for the products that are performing well. Asset liquidity problems will be a thing of the past.
Faster response times to leads and customers
Ask yourself two questions: For each month, how many sales inquiries and customer service questions pertain to how much product you’re holding? How much time does it take to take stock and answer those queries? With a WMS, up-to-the-minute inventory counts enable your teams to answer leads and customers in minutes.
Your staff won’t even need to be on site to deliver answers in a flash. IT service providers like Vodigy Technologies can make WMS information available on mobile devices to help you get the right answers to the right people before they have a chance to consider another supplier.
Decreased assembly times
If you’re assembling multiple items into a single package, increasing inventory visibility and accuracy will immediately reduce the time it takes to get the product out the door. This is even more valuable for companies that store products across multiple warehouses.
It’s not just about simplifying pick-and-pack orders for assembly workers. More data from each step of the process will reveal which kits take the longest to assemble, where the bottlenecks are, and how to reorganize floor layouts for increased efficiency.
Increased customer satisfaction
The more efficient your warehouse floor operates, the happier customers will be. They’ll receive products faster, with fewer mistakes, and for more competitive prices (assuming you pass WMS-based savings on to them). You’ll also be one of the more memorable suppliers in your market if you work with an IT project consultant to integrate real-time inventory data into your website, app, or any other client-facing platform.
Anyone hesitant to put an Out-of-Stock icon next to a product should consider the alternative: Accepting a customer’s money and then taking hours or even days to give them the out-of-stock update. Which is worse? Honesty and transparency with your buyers goes a long way.
Picking your WMS solution
For all their benefits, warehouse management systems aren’t right for everyone. Some businesses would be better off with an order management or enterprise resource planning system, which tend to place higher emphasis on variables like accounting, invoicing, and shipping. Some businesses may not need a specialized system at all.
Although supply chain technology is one of our specialities, we’re not going to advocate a solution that your company doesn’t need. Our business model hinges on providing long-term IT support and consulting services that improve your bottom line, which means your trust is required for our success. Call us today about optimizing the technology that powers your warehouse.
