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How Warehouse Software Improves Workflow Efficiency

Warehouse software is effective for revealing inefficiencies that eCommerce businesses have as it looks at your warehouse operations using technology and data to show you the areas that you need to improve. The software is helpful for anyone looking to control their warehousing and inventory procedures, and we will look at how it improves workflow efficiency.

Warehouse software benefits

Warehouse management software is an application that assists in managing daily operations in the warehouse, from supply chain fulfilment operations from the distribution centre to the store shelf. The system offers plenty of benefits that businesses can take advantage of, and these benefits include.

  1. Enhanced inventory turnover
    The key to better inventory management is by gaining visibility of your inventory, and WMS assists in doing just that by creating faster inventory turnover. WMS also assists in reducing the need for safety stock as it records accurate inventory levels.
  2. Better stock control
    There is always stock constantly being moved in the warehouse, whether it is coming in or going out, making it difficult to keep track of all the inventory. The ability to track items in the warehouse can be valuable as losing track of stock can have expensive consequences for the business. WMS assists companies in locating and retrieving goods quickly, ensuring that you never lose track of how much stock you have and its location in the warehouse.
  3. Optimised warehouse space
    Space in the warehouse is crucial, and WMS assists warehouses in organising the warehouse space to maximise the number of goods they can store. The system is also designed to locate items based on their sell-by-date, packing and shipping points, and receiving and assembling, ensuring that you lower your inventory holding costs.
  4. Improved labour productivity
    Outdated processes can make warehouse operations slower and inefficient, leading to a lack of staff motivation. WMS optimises stock flow through an automated replenishment system that top-up pick face stock, ensuring a seamless link back onto the software to increase productivity.

How warehouse software improves efficiency

1. Accurate item locations
The most frustrating thing that can occur in the warehouse is being unable to find an item. The inability to find an item can result from two factors: not knowing the specific location of an item and the second is not knowing if you have that particular item in your warehouse. By using WMS, you will be able to see whether you have specific items in your warehouse and know the precise location of those items. Knowing where products are located makes it easier for pickers to see where every item in the warehouse is located. Not only will this save processing time, but it also leads to customer satisfaction.

2. Better quality control
During peak seasons, the warehouse might become chaotic, and it might make it challenging for pickers to keep up with demand even if they are great at multitasking and processing orders fast. WMS platforms have vigorous quality control checks that increase picking accuracy as they ensure that pickers pick up the correct items each time. The process ensures better quality control which is essential for customer satisfaction. Failure to meet customer expectations might lead to your business receiving negative customer reviews, which also causes a breakdown in customer loyalty. WMS also highlights areas where your business needs to improve while giving you the tools and knowledge to fix the areas.

3. Visibility into products
It is never ideal to have products expire in the warehouse, but this is also a common issue that warehouses can face if they don’t have visibility into expiring or perishable products. Though it is known that you must use the First-In-First-Out (FIFO) philosophy when handling products, monitoring and tracking FIFO manually can prove to be a challenge. However, with WMS’s help, you can track products based on their age from the moment they arrive in the warehouse until they leave. Having the ability to track products also ensures that customers always receive the freshest products and that your warehouse never wastes any stock.

4. Accurate forecasts
When you plan for your future, there is a greater chance of you achieving success. The same applies to warehouses, as planning allows you to meet seasonal trends. Fortunately, WMS enables your business to aggregate your purchasing trends, giving you access to data about the demand you can expect at different times of the year. Having access to this kind of information enables you to take action about how you can reorder your warehouse’s layout to maximise in-demand products, reallocate funds to other products, or restock products in demand. Gaining accurate forecasts also allows you to estimate profits, enabling you to plan with confidence and precision.

5. Prediction of stock-outs and overstocking
Stock-outs are the worst thing that can occur in any warehouse, and warehouse managers must do all they can to avoid them from happening. Stock-outs lead to negative customer experiences as there is nothing worse than wanting to purchase an item and then realising that it is no longer in stock when you click the buy button.
On the opposite spectrum, overstocks are also an issue for businesses as they will have too much capital tied up in inventory which can spell disaster. WMS assists in avoiding overstocking and stock-outs as the system notifies you when you need to reorder based on when products dip below the par level. Through these notifications, you won’t ever have to keep complicated stock-out equations in your mind when monitoring product sales.

6. Warehouse layout optimisation
Optimising your warehouse layout plays an essential role in meeting product demand as it affects how fast you can ship out specific products. WMS offers aggragated analytics on products, and it sees the trends for these products. For example, the software can look at purchasing trends to see which products are bought most often and identify the type of products that customers purchase together. You can move these products closer or store them together using this data. Though it may seem insignificant, making these minor tweaks saves time on your processing and shipping.