To maintain and increase margins organisations must cut costs, maximise stock turn and optimize asset utilization. These tasks which cannot be achieved without effective WMS, or supply chain solutions.
Quantifying the Impact
Most organizations we work with to implement Warehouse / Supply Chain Management Systems gained an extra .5% to 1% in terms of accuracy levels as a result. Most importantly, there are not just once off gains, but deliver to the bottom line year after year.
Obviously, the impact on the bottom line is great. In fact there are few initiatives that can have such a fundamentally positive impact on the performance of a supply chain, or warehouse management.
Performance Advantages
But, accuracy levels is just one of the areas where systems impact on performance – the others are:
· Reduced labour levels (driven by more efficient picking and placing, elimination of manual processes, automation of key tasks, etc.) and costs (because of a reduction in numbers as well as a de skilling of staff)
· Reduced Administration and Paperwork, thanks to more efficient POD capture, RFID and other paperless technologies
· More Speedy and More Accurate Billing
· Better utilization of space (including minimizing conjestion at loading bays or pickfaces), as well as handling equipment
The Systems Imperative
In an industry where margins are under pressure all supply chain partners must drive efficiencies by cutting costs, maximising stock turn and optimizing asset utilization. These tasks which cannot be achieved without effective WMS, or supply chain technologies. No wonder many managers complain that their WMS is struggling.
Joe O Shea
Principal Systems – Warehouse Management Systems (WMS) – Supply Chain Solutions
