WMS 2024
5 WAYS A WMS IMPROVES BUSINESS PROCESSES While a WMS is focused on the four walls of the warehouse, its impact extends beyond the boundaries of an organization to downstream customers, as well as upstream customers and other stakeholders in the reporting process, says Dr. Robert Hooker, associate professor at the University of South Florida and an associate with the Monica Wooden Center for Supply Chain Management & Sustainability. Here are five areas in which a WMS will improve a company’s processes and business outcomes, says Dr. Hooker. 1. Cost reduction. A WMS will help an enterprise reduce costs by optimizing stock levels, minimizing inventory carrying costs, and streamlining processes. 2. Productivity. You can automate manual tasks such as data entry, creating a picking sheet, and inventory counting. Also, you can schedule dock doors and the labor required to match inbound shipments. WMS can direct put away for inbound shipments and picking and packing for outbound fulfillment, so products are tracked automatically, and workers are directed to where the correct items are located in the warehouse. 4. Visibility. The WMS tracks stock in the warehouse and can automatically replenish it when it reaches a predetermined level. 5. Customer service. By tracking inventory levels, product should never be out of stock so customer orders can be fulfilled without back orders or delays. 3. Error minimization. The
3PL Warehouse Manager from Extensiv improves picking productivity, letting companies track every item in inventory from any web browser.
Overstocking unwanted items leads to tied-up funds, additional storage costs, and potential obsolescence. Conversely, understocking popular items can result in missed sales opportunities and even the loss of customers. Inefficiencies such as expediting replenishment inventory, the cost of shipping orders multiple times, and even overtime to process late orders, inflate costs significantly. “If you’re not managing the inventory lifecycle, that can be one of the areas where a business breaks down, not because there aren’t customers willing to buy from you but because the cost structure isn’t sustainable,” Bretey says. A WMS is essential for companies at practically any stage to manage inventory and outbound shipments efficiently and accurately. “The minute you have more than 50 SKUs, or you’re outgrowing your garage, a WMS is critical to running a business,” Bretey adds. If you are in the market for a WMS, Bretey advises you to seek out solutions that are both scalable and configurable. Look for systems with the features you need at a cost you can afford. “While technology is moving fast, if you don’t think this software will serve you for five years or more, it probably is not the right choice,” Bretey says. “Switching systems is time consuming and complicated.” With a WMS, you codify business rules, so decisions are made consistently in alignment with transportation contracts and other policies. “One of the reasons to use these systems is to mistake- proof your processes,” Bretey says. “You
build rules into the system, and the system helps your employees make good decisions every day. That’s what gives you a scalable warehouse.” An often-overlooked factor in successfully adopting a WMS is understanding the difference between configurability and customization. A configurable system allows you to arrange menus and processes using settings and preferences built into the system. It’s like setting up Microsoft Word the way you like it. Usually, there’s little to no cost involved. On the other hand, customization means creating a unique version of the system for your company. Full customization usually requires additional investment in development and integration in addition to the baseline costs and ongoing expenses for support for future software releases. Offering seamless integration, 3PL Warehouse Manager from Extensiv is a comprehensive warehouse management platform that makes it easy to manage inventory, automate routine tasks, and deliver complete visibility to 3PLs and their customers. DATEX WMS: CONFIGURABLE BEST-OF-BREED SOLUTION FOR INTEGRATED LOGISTICS Mid-market companies have different needs than enterprise giants or smaller 3PLs. Datex Footprint WMS was developed to serve that market with a best-in-breed solution that seamlessly integrates in a hub-and-spoke fashion with other systems driving the business.
82 Inbound Logistics • September 2024
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