People often tend to underestimate the hardships that come with working in the moving and logistics industry. Most simply brush it off as moving boxes or cargo from point A to point B. However, we know that there is much more to it than that. We know just how often injuries can occur, especially when it involves work in warehouses and storage facilities. However, what can significantly contribute to reducing potential complications in the workplace is an implementation of a good Warehouse Management System (WMS). After all, we live in a modern high-tech age, where movers’ software can play a key role.
10 key benefits of warehouse management system
As is the situation with all pieces of software, the benefits of WMS depend on the individual needs of each company that uses it. A lot rides on the type of industry and the size of the company in question. Nonetheless, here is our take on the top benefits of WMS for logistics companies:
1. It lowers your operating expenses
There are many ways in which a well-implemented warehouse management system can help lower your expenses. We are talking about a software that can determine the optimal use for labor and space. As a result, you can reduce waste, both in terms of time and manpower. WMS works like an architect consultant for your warehouse – it helps you plan out the layout and where to keep which materials, so as to cause minimal disruption. Some even have a simulator option that enables you to create floor plans within the system.
2. Advanced insight into your inventory
Probably one of the most important components of a warehouse management system, inventory visibility plays a key role here. By using barcoding, serial numbers and RFID tagging, the software enables you to:
- document every item that enters your warehouse;
- monitor its movement through the warehouse;
- organize where it will be stored until it ships from the warehouse.
3. Just-in-time inventory
The just-in-time inventory strategy is a complex system that requires a lot of planning and control. However, with the implementation of WMS, this system becomes a balanced out process that you can easily monitor.
4. The ability to continuously upgrade
What good is software if it get run over by time and other innovations? This is why there are updates for every program and piece of software out there. And warehouse management system software is no exception to this rule. With constant updates, you are able to stay ahead of the competition and continuously improve your warehouse operational capacities.
And with the option of cloud WMS, improvement becomes even easier. You can write off the extra expense of having in-house IT guys to handle all this. Now, all updates can come remotely, giving you the chance to focus your efforts and investments into other aspects of business.
5. Warehouse management system boosts security
With WMS, employees have to use individual accounts to enter transactions and anything that happens inside the warehouse. This means that each member of your staff has a unique trail of activities that can be monitored and traced back at any point. As a result, you are able to reduce the possibility of mistakes or thefts. Accountability is improved and you can easily assess employees on a professional level.
With individual accounts also comes limited access, meaning that you can choose what certain members of your staff can access. This enhances control over everyday operations, because your team will have access to as much information as it is necessary for them to do their job. So, you don’t have to worry about company secrets and losing your competitive advantage.
6. Inbound and outbound optimization
The common issue companies have when receiving inventory is optimizing the way it is moved around. However, with a warehouse management system, you can easily schedule and plan any incoming or outgoing shipments. This enables keeping good relations with vendors and supplies, in addition to saving time and labor.
7. Increase in labor management efficiency
This particular benefit might be harder to believe, but it actually works. As you’ve learned by now, WMS can plan and control every process inside the warehouse, from shipments to inventory placement etc. One thing it can also do is determine the optimal choice of labor force for certain tasks. By using skill level, proximity and other criteria, a warehouse management system can help users assign tasks to the right people for the job. You can even use it to:
- determine when you may need more or less staff;
- identify top performers;
- seek areas of improvement.
According to trending information, labor costs making up 65 percent of the average warehouse budget. So, the more you know about where the buck stops, the better off your business will be.
8. It can improve employee morale
The better your overall operations function, the more satisfied the workers will be as well. Nobody likes complications at work – everything should be running smoothly. And with warehouse management system, it can. As a result of its efficiency, stress levels are lower, productivity is improved, revenue is on the rise, and there is no reason not to reward staff members with holiday bonuses. All in all – one big happy warehouse.
9. Enhanced billing management options
The only thing you need to know here is that a WMS has built-in billing management tools. Either that or integration with a 3rd party app. This enables the user to implement activity-based billing. So, you have an almost automated payment process with suppliers and can connect with major eCommerce platforms to process credit card payments.
10. You collaboration with suppliers and vendors grows
The benefits of warehouse management system exceed your internal company needs. In fact, with such good inventory visibility and inbound/outbound optimization capacities, all processes run faster and smoother. This means that your suppliers don’t have to waste time waiting at docks and loading bays. And this means that shipments will be on time, leading to greater customer satisfaction. It’s simple really – WMS = better relations with suppliers = on-time shipments = satisfied employees and customers.
Need we say more?
