5 Reasons Why You Need an Effective Warehouse Management System

Warehouse Management System

Imagine this: One of your most valued customers just placed an order during the year’s busiest season. You check your inventory, and it shows you have enough materials for it. You commit to your customer and promise a deadline. Then you get to the end-of-line of your manufacturing and end up several cases short. You now feel you are left with two options: underdeliver or ask for an extension. Either way, you have compromised your relationship with an important customer. 

Many companies, especially those that are still starting to expand their operations, do not have to imagine this. They have lived this bad dream. Until they find better warehouse management solutions, they will relive it again and again.

It is one of the many nightmarish situations stemming from poor logistics. It is exactly what a sophisticated warehouse management system prevents. This reason alone should be enough for your company to shift to an enterprise resource planning solution or ERP.

 Here are a few more:

1.It reduces the needed inventory level.

The space in your warehouse is an important commodity. It is not free. You pay for every square metre or foot. And as long as your raw materials or finished goods are there, you will keep paying for it.

Effective warehouse management solutions can streamline your inventory processes, making them faster and more efficient. It allows you to track every item for an accurate inventory. This significantly reduces your cycle time, giving you the freedom to maintain a lower inventory level and warehouse space without chipping away from your confidence in fulfilling orders. In the warehousing community, this is referred to as the just-in-time principle or JIT. 

2.It reduces operating costs.

An effective warehouse management system can reduce operational costs in many more ways. It makes all your warehouse data more visible, helping you make better business decisions concerning your space and labour. It also helps you determine where to keep certain materials and products to optimise your warehouse’s flow and prevent losses. FIFO and LIFO are easier to execute, ensuring that perishable materials or goods are picked up first.

3.It provides continuous Improvement in warehousing.  

Effective warehouse management solutions can help you stay ahead of the competition. They constantly introduce new features to keep up with the latest and best industry practices. Some of these updates or innovations are game-changers that can simplify your operations, eliminate losses, or reduce costs where possible.

4.It gives enhanced security measures.

All reputable warehouse management systems require users to create a profile or account before getting access. This makes it much easier to track each transaction to the specific employee, shoring up your security by significantly improving accountability. It also helps in troubleshooting erroneous or problematic transactions. Most importantly, you would be able to protect sensitive information by allowing access only to authorised users.  

5.It facilitates a faster return on investment.

An optimised warehouse management system can help you get your investment back in many ways. It helps you sell more products, sell faster, and deliver exactly when the customer asks for it. Increased customer satisfaction, in turn, brings in more business. It also eliminates inquiries and complaints, reducing your need for customer support. 

If you are looking to expand your operations, you need a powerful tool to break the barrier associated with increased complexity. This is where ERP comes in. Armed with the best warehouse management system, you are more than ready to take the next big step.