A warehouse management system (WMS) is a software program that allows the integrated management of daily warehouse operations, such as tracking inventory levels and stock locations. While systems of the past were limited to providing storage location functionality, current WMS programs can do far more for your business.
These handy software programs have evolved, and are now designed to improve the organisation and enhance the productivity of your business. They can often be so complex and data-concentrated that they contain tracking and routing technologies such as Radio Frequency Identification (RFID) and voice recognition.
The ultimate purpose of a WMS is to provide your business with the information it requires to efficiently run the daily logistics operations of your warehouse. While many companies equip their warehouse with customised industrial pallet racking and storage systems from manufacturers such as MACRACK, these businesses often forgo installing a WMS, limiting them from getting the most from their tailored warehouse product.
WMS programs are the perfect complement to your warehouse storage system, providing the ultimate combination for inventory organisation. Check out the top 5 benefits of a warehouse management system below.
1. Reduces Inventory Loss
If your warehouse has an incorrect inventory count, this often results in losing track of your items. If you have an item in your warehouse that is unaccounted for on your records, you will order stock replacements, leading in overstocking. With a WMS, you get a precise and concurrent record of your inventory, helping avoid this problem. A WMS will also keep track of products’ expiration dates to ensure proper stock rotation, avoid information errors and wastage and save money.
2. Uses Space More Efficiently
A WMS is ideal for managing the space in your warehouse for more efficient storage. A WMS allows you to better see the storage areas and locations in your warehouse thoroughly, resulting in improved organisation and more space for inventory. It can even tell you where best to store an item based on its dimensions and weight.
3. Improves Warehouse Capacity
Thanks to these types of programs’ ability to provide accurate information without any information lead times, it allows stock to move more quickly through your warehouse to improve capacity. By giving a correct record of inventory, having a WMS will save you from overstocking, ultimately increasing the dollar value of your stock per square foot.
4. Reduces Labour and Equipment Expenses
Making picking and packing operations more efficient, you are able to have the same work being done with fewer workers and no over-time needed. A WMS allows you to visualise your inventory and its location in your warehouse, saving searching time and reducing travel distances on foot and on forklift or pallet jacks. This reduction in use means less maintenance and replacement is required.
5. Maximises Labour Productivity
If you find your staff wasting time searching for inventory, or wandering around, not knowing what to do next, a WMS can help to increase labour productivity by managing and prioritising staff tasks. Your WMS can even tell you how many staff members are generally expected to complete a task, and how long the task should take.
If your warehouse could use a hand to improve organisation, efficiency and productivity, a warehouse management system is ideal for managing daily logistics operations while saving you time and money.