Effective Warehouse Management System
An effective warehouse management system (WMS) should include three key components – Control, Coordination, and Communication. In today’s business environment, the warehouse is more than just a stock-holding location and plays a vital role in the overall supply chain logistics.
A well-managed warehouse provides a myriad of benefits, including financial savings associated with reduced manual labor, improving cash flow, increased customer satisfaction, and customer service, as well as efficiency in space optimisation. We have detailed down the key benefits you can expect from implementing a warehouse management system.
Key Benefits of Warehouse Management System (WMS)
Improve Space Utilisation
Your warehouse space costs you money in rent, electricity, and other utilities. Space in the warehouse needs to be planned effectively to create an efficient workspace that is both cost-efficient and optimised to keep your inventory in good order. Your WMS can help you to forecast your inventory needs, which you will require to maintain an optimal inventory in your warehouse.
Planning Warehouse Layout
By utilising data from your WMS, you can identify fast-moving items vs. slower-moving items – so you can plan the layout of your warehouse more efficiently. Faster moving inventory can be placed in easier-to-access locations to reduce the time taken to load and unload the items.
Plan ahead for seasonal fluctuation in demands. With a WMS you can plan your stock levels to reflect the demand for each item and products. Forecast demands based on historical trends and ensures that you have sufficient inventory for any increase in demands.
Segment Your Warehouse
Use bin locations to segmentise your warehouse to better understand the stocks in your warehouse. Similar to a geographical map, the bin location helps to map out the location of your stock and enables the staff to quickly navigate around the warehouse.
Holistic View of Inventory Management
The Warehouse Management System (WMS) will also know the weight of each item, the size of each item, the case, and the physical restrictions of each item. Putting the inventory away can be easily directed to make the most out of space utilisation and there will be a reduction in the amount of foot traffic when space is being utilised properly.
With the right WMS, you can significantly increase your operating capacity because a WMS has the ability to manage inventory and other warehousing activities.
Start your WMS journey with MicroChannel today. Let’s have a chat – drop us a note below.