The Advantages of Warehouse Management System

Faster inventory turns

It can reduce lead times by limiting inventory movement and improving the accuracy of inventory records, thereby supporting a JIT environment. As a result the need for safety stock is reduced, which increases inventory turnover and working capital utilization.

More efficient use of available warehouse space

In order to reduce safety stock requirements, warehouse management system often increase available warehouse space by more efficiently locating items in relation to receiving, assembly, packing, and shipping points. This increases efficiency to help both in improving productivity and lower inventory holding costs significantly.

Reduction in inventory paperwork

Implementation of a real time ware house management system can significantly reduce the paperwork traditionally associated with warehouse operations, as well as ensure timely and accurate flow of inventory and information. Receiving report, pick tickets, move tickets, packing lists, etc., which are typically maintained as hard copies, can all be maintained electronically.

Improved cycle counting

Warehouse management system can be use to capture relevant data to systematically schedule personnel for cycle counts. For example, frequency of movement, specific locations and etc. This cycle counts not only can improve the accuracy of inventory records for planning purposes, it also can eliminate or reduce the need for complete, costly physical inventories.

Reduced dependency on warehouse personnel

Implementing a comprehensive warehouse management system facilitates standardization of inventory movements, picking methods, and inventory locations. This standardization helps to minimize reliance on informal practices, resulting in reduced training costs and lower error rates.

Enhanced customer service

By going through the process from order to delivery, companies can more accurately know the product availability and realistic delivery dates. Warehouse management system can automatically identify and release back-ordered inventory and also can reduce returns as a result of increased shipment accuracy.

Improved labour productivity

Warehouse management system helps optimize material flow, typically by incorporating several inventory picks into one or by “cross docking”. This is a process that routes incoming shipments to the location closest to the outbound shipping dock, which will reduce warehouse handling.