Supply Chain Warehouses
Five Ways that Automation Leads to Decreased Operational Costs
Updated: Apr 6, 2020
Today’s fast-paced; on-demand economy has set new standards for supply chains and warehouses everywhere, making efficiency more important than ever. The greatest tool for reaching that maximum efficiency, thus decreasing operational costs, and keeping up with the competition you may ask? Warehouse Management Systems (WMS).
What is a Warehouse Management System?
A WMS is a software application that supports and optimizes all warehouse operations through automated management functions. WMSs seek to accomplish the imperative task of building a core database that collects and stores useful information about the facility. Facility operators can then use that data to make pivotal decisions on the most effective practices of receiving and shipping products for their facility, as well as making the best use of available space in the building.
While the benefits of a WMS are ample, here are our top five ways that automation leads to decreased operational costs:
1. Customer Service
WMSs allow businesses to better serve their customers and develop stronger, long-term business relationships built on trust and transparency, by accurately tracking the customer’s goods from product order, delivery, and everything in between. The time saved by a WMS gives companies time to truly focus on their customer’s needs. Being able to provide customers with assurance, consistency, and focused attention leads to higher retention rates, as well as additional customer acquisitions.
2. Real-Time Inventory Control
A WMS improves inventory management by allowing businesses to effortlessly track every unit, down to the smallest detail. Increased accuracy and minimizing human error with information that is updated in real-time provides quick feedback so companies can respond faster to the demands of their customers. Most importantly, at all times customers know exactly what is in the warehouse, where it is located, and when it needs to be restocked.
Labor is usually the most significant overhead expense in the warehouse industry. A WMS quickly decreases labor savings by eliminating many time intensive tasks, and increasing the productivity of each worker. Workers are able to pick and receive more items in less time, with fewer errors. This precision reduces customer inquiries and simplifies customer support. Additionally, a WMS saves time by effectively utilizing the space of a warehouse and consistently moving goods at maximum speed.
4. Meet and Exceed Compliance Regulations
Warehouses face challenging supply chain and government regulations, while also striving to meet consumer demand. A WMS gives businesses the tools needed to stay competitive, while also staying compliant with regulations. This is accomplished through real-time recording and tracking of data, which supports improved business intelligence and solutions, saving money at every turn.
5. Continuous Improvement
WMSs aren’t stagnant; they are a living thing that is always changing, growing with a business. In this way a warehouse can easily stay updated on the best industry practices, and always optimize their space and system for their business and customers.
Have you ever used a warehouse management system or considered it? Which aspects were most beneficial to your business or most enticing? Let us know in the comments below!