Six Top Benefits of Warehouse Management Systems
For any business that has a warehouse that needs to be managed, warehouse management systems (WMSs) are crucial. A warehouse management system consists of software that helps manage the daily operations that take place in a warehouse and enables different aspects of a warehouse, such as inventory control or the location of stock, to be tracked through one centralised database. Depending on the needs of the business, warehouse management systems can stand on their own, or form one module of an enterprise resource management system. At the end of the day, the main function of a warehouse management system is to provide managers with the information they need to control the movements of materials and stock in and out of the warehouse. Many advantages are associated with the implementation and use of warehouse management systems; these include:
- Fewer human resources: Because the cost of labour can be substantial, it is essential to manage staff levels accurately. Warehouses typically have seasonal peaks and the needs of the business must be met during these times, without having to fork out on overstaffing during low-activity seasons. With the use of a good warehouse management system, you can reduce your staff compliment during normal operation peak time requirements can be better met. This means that you will be able to decrease your overall staff levels throughout the year. More staff also means more money spent on training and development.
- Lower expense on equipment: Fewer staff needs less equipment, and money spent on the purchase and maintenance of equipment can be reduced.
- Optimised Inventory management: A good warehouse management system ensures that stock levels are constantly monitored, so you can place orders for more stock when needed. This means that you can provide your clients or production line with the goods they need, when they need it. Stock levels can be much more accurately managed and that you will have a highly effective warehouse.
- Reduction of waste: A huge challenge for some warehouse managers is the reduction of waste due to unsuitable storage conditions and stock that was over-ordered and has expired. Because warehouse management systems manage stock levels effectively, there is a much lower likelihood of sitting on a mountain of expired stock that results in financial losses.
- Better use of facilities: Storage costs money, and if an item is over-ordered, you will have to store it. As a business grows, the use of facilities must be optimised, and the existing storage managed more effectively to accommodate growth and increased stock levels. A WMS can automate your stock rotation and picking, which translates into a much more efficient use of facilities.
- Increased management control: Because a good warehouse management system works in real time, it can provide information that is up to date, to the second. This means that it can warn against impending low stock levels or expiry dates, and business managers or warehouse employees can have access to real-time information that is constantly updated. It also means that customer orders can be managed better, and that orders can be picked and delivered according to the specific needs of the customer. A good system will greatly increase the accuracy of stock levels due to a lower rate of human error, and as result, the warehouse runs much more effectively.
Integration of Warehouse Management Systems with ERP
As mentioned before, warehouse management systems can form part of an ERP solution. This could be tricky, because it is essential to find the warehouse management systems that best serve the needs of the organisation, while ensuring that the WMS they choose is compatible with existing ERP solutions. The needs of the business will dictate to which extent the WMS and the ERP software are integrated and implemented. Without integrating these two systems, there would be a requirement for manual processing, which is not nearly as effective as a fully integrated ERP with an optimised WMS.
In order to ensure that you get the best fit for your company, you need the experts on your side. At Lupus Consulting, we specialise in ERP and all the related systems and modules that can help you to run your warehouse (and your business) much more effectively. Give our team a call today to find out more.