The goal of warehouse management is to ensure that all activities within a warehouse are well-organised, managed, and maintained. It may seem that some of these procedures are automated and hence error-free but the reality is that any warehouse operation is fraught with the possibility of errors and problems. The global warehouse and storage market increased from USD 601.68 billion in 2021 to USD 656.89 billion in 2022, representing a CAGR (Compound Annual Growth Rate) of 9.2%, as stated in the Warehousing and Storage Global Market Report, 2022. However, the total does not include the cost of correcting any errors that may have happened.
Once a single complication hits the warehouse, the speed, efficiency, and productivity of a single warehouse activity may experience counterproductive consequences with an unimaginable amount of cost to be borne by the owners. These mistakes are typically discovered after the process has already begun or has already been completed. In most cases, by the time an error is discovered, it is already too late to prevent it or mitigate its consequences. Some of the issues surrounding warehouse management include:
- Traceability: The chemical distribution industry, which requires efficient data capture to maintain agility and explore root causes in the case of a recall/quality audit, places a premium on traceability especially when dealing with chemical substances having shelf lives.
- Inventory Visibility & Accuracy: It is vital that warehouses be managed in such a way that the costs and incidence of product damage are minimised by the implementation of adequate lighting, cleanliness, and organisation as well as safety precautions. Processing customer returns are the most expensive for warehouses which may be close to 20% of warehouse operating costs. Maintaining stock accuracy will result in right items being picked, thus reducing the return processing.
- Redundant Processes: Order fulfilment times and labour costs are increased by unnecessary, repetitive activities that can be readily automated. In order to speed up business processes, technology must be used to eliminate unnecessary procedures.
- Space Optimisation: Research shows the average warehouse space utilization is only 68% across the industry. Quick and simplified activities that increase overall productivity cannot be reached without first thinking about how to use the given warehouse space. Implementing an appropriate warehouse process can help to regain 30% of effective warehouse space.
- Picking Optimisation: 2/3rd of the warehouse operation time is spent on the picking operation. Even a slight improvement in the picking process can lead up to 20% of warehouse management efficiency. This can be achieved by replacing manual data entry with automated operations and by predetermining picking routes.
- Handling Huge Volumes of SKU: SKU management due to multiple variations of the same products combined with different packs, high volumes and large volumes of movements can be very challenging for warehouse operations to maintain pick accuracy and velocity. Its imperative to have the right process and methodologies in-built in the warehouse to effectively and accurately match the SKU with the order processing.
Warehouse Management System (WMS)
Nevertheless, if you are aware of the various problems that could arise in your warehouse operation, you will be able to anticipate them in advance and prevent major negative or long-term consequences. As the saying goes, a modern problem requires a modern solution. This is where a Warehouse Management System (WMS) comes into the conversation. A WMS is designed to solve these widespread problems and produce a reliable warehouse environment in real-time. A modern and reliable Warehouse Management System is able to:
- Keep Track of and Manage Inventory
By reducing the stock on hand, boosting order fulfilment, and shortening the time it takes to process orders, a WMS streamlines the process of managing inventory. With a modern WMS in place, you can keep tabs on each individual item in your warehouse, ensuring that your orders are fulfilled properly and that your inventory counts are accurate.With the help of a reliable WMS, keeping track of stock can be done in a snap. WMS enables businesses to better meet the needs of their consumers by providing timely, precise feedback based on data that is updated in real-time. The warehouse’s inventory, location, and restocking schedule are constantly and accurately updated for distributors and wholesalers. - Track and Improve Customer Service
The quality of your warehouse directly affects the service you can provide to your customers. Providing excellent customer service relies heavily on fulfilling customers’ orders quickly and accurately. With a WMS, choosing is more precise, ensuring that customers receive their exact orders the first time around.A WMS also automates the processes of shipping management and tracking to save time and effort. Assigning workers, monitoring shipments, and planning for cutaways are all a breeze. Thanks to automation in the warehouse, timely data, and constant monitoring, the accuracy is increased. - Increase Efficiency in Business Operations
Your warehouse is an integral aspect of your company’s ability to achieve its production targets. With the help of a WMS, you can speed up the process of fulfilling orders while maintaining high standards of quality control and uniformity throughout the warehouse. Having everything you need at your fingertips enables employees to produce more in less time which increases warehouse efficiency by 25%. - Stipulate Return On Investment (ROI)
With the correct WMS in place, you can boost revenue and profit by increasing both the speed and accuracy with which you serve your consumers. In addition, your current staff may pick and receive more things in less time and with fewer mistakes. With such pinpoint accuracy, you may reduce consumer enquiries and streamline your support processes. It’s proven that 79% of the companies having superior logistics and supply chain process achieve better revenue growth than their peers in the industry. - Merge Enterprise Resource Planning (ERP)
A quality WMS will integrate with the management system you already use for your business, allowing you to avoid duplicating any of the processes or procedures you already have in place. Your WMS should be able to adapt to the changing demands of your organisation as it grows. - Meet and Exceed Regulations for Compliance
Businesses today must deal with strict government rules and a complicated supply chain to keep up with consumer demands and stay ahead of the competition. With the help of a modern WMS, firms may meet regulatory requirements, while maintaining a competitive edge. This is achieved using systems that automate corporate operations, enable real-time capture and tracking of data. - Leveraging Latest Technology for Efficiency
Organizations have traditionally been able to show only incremental benefits in operational efficiency by implementing continuous process improvements for all business operations. But, by implementing latest tools and technologies real transformational improvements can be realized in day-to-day life. Automated guide vehicles, pick robots, put to light systems are reversing the trend of moving men to goods than goods moving to men by increasing efficiency and accuracy of warehouse management manifold. Similarly, deploying AIDC concepts through barcode, QR code or RFID can achieve the traceability of goods and track real-time movements without being physically present in the warehouse.
In order to make the most of their available resources, firms can best leverage WMS by identifying their most productive operations and then optimising the usage of both labour and space. In addition to reducing costs, enhancing customer service, and optimising operations, business managers may stay in control by viewing analytical insights and receiving early warnings. In addition, a well-balanced WMS allows business owners to see exactly what they have on hand, so they never have to worry about running out or having too much safety stock on hand. Finally, an intelligent WMS helps organisations strengthen relationships with their customers and vendors by facilitating timely, precise order fulfilment which pleases both parties.
ONEERP™ Warehouse Management System is The One for You
Warehouse Management ERP is a dire need for distribution, retail and wholesale businesses as the warehouse is the most significant element of these enterprises. Moreover, no matter which vertical a business is into, it depends on warehousing and logistics for effective and timely distribution of its products, as well as services. If you are looking for a modern solution that combines features and latest technology to fulfil all the criteria above, the disruptive ONEERP Warehouse Management System can help you advance and expand your business by offering limitless technical possibilities.
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