There are still a number of organisations that still manage their warehouse inventories in the ‘old school’ way – with a notebook, a pen and a person that continually counts product. Nonetheless, this simplistic system always has issues and extensive costs, no matter the size of the manufacturing facility. To solve these issues the solution is to implement a warehouse management system. This can save the organisation substantially on employee work costs, inventory holding costs, and manufacturing costs.
What is a Warehouse Managing System?
This is a program that automatically identifies data and captures it through barcode scanners, computers and radio-frequency identification technology. It allows a company to collect data, and economically monitor the flow of the product, from production to delivery. After the data is inputted to the system, it is synchronized on the central database, and forwarded to the appropriate workstation. It is this data that allows warehouse management to provide useful data reports that can help reduce overall production and warehousing costs. The overall advantages include:
- Increased visibility.
- Inventory accuracy.
- Reduction in manufacturing needs.
- Reduction in shipping costs and errors.
- Decrease in employee work-time used.
an effective warehouse management system offers computerized procedures that make the management of product flow more efficient. These systems offer the control, storage, and tracking of materials located in the warehouse.
What is Involved?
Basic WMS systems track products through the manufacturing process to the final delivery. However, many current systems are much broader than this, allowing management to use the data to plan inventory needs, and manage future projections. WMS helps with cost management and helps keep all parties informed about any inventory issues.
An exceptional warehouse management system also offers detailed data that relates to container storage, packing, unpacking and shipping. WMS doesn’t start when the materials or products are received, but actually starts when the initial manufacturing process is designed.
Where to Start?
Whether you want to upgrade a current WMS you use, or plan on implementing a brand new system, you should first start by developing your warehouse management strategy. Look at your current business practices and think of how you would like to improve your product and warehouse management. Analyse your inefficiencies within the warehouse or supply chain and think of how you are solving these problems now. Use performance metrics or key performance indicators to help measure the areas of your warehouse management distribution methods.
Look for a WMS solution that improves these factors. Ensure that the system you choose will offer all of your department’s easy access to the critical supply and demand information for your supply chain. Without this extended accurate and up-to-date information you will continue to have supply chain issues, as the implemented system won’t offer the information describing the issue or delay.
When you understand all the external and internal factors that affect your warehouse performance you can build a management strategy that gives you the right WMS software for your organisation’s needs.
About BCP – www.bcpsoftware.com
Founded in 1979, Business Computer Projects Ltd (BCP) is a leading systems house specialising in supply chain software solutions and warehouse management systems. Our Accord® systems offer end-to-end, web enabled supply chain solutions for delivered wholesale, cash & carry and retail distribution.