Warehouse Management System, value-added strategy for supply chains - Authorized Movers

Warehouse Management System, value-added strategy for supply chains

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By: Jorge Choque

Jul 21, 2021

Angela Guerra.
Solutions consultant. Close
Technology

Why is setting up a WMS system considered a valuable business strategy? If the current dynamics of the economy and the transformations that supply chains have undergone are considered and evaluated, thanks to the strength that concepts such as omnichannel, mass personalization and just-in-time have taken , all this focused on customer satisfaction, there would be a good approximation of the advantages that would provide the establishment of a WMS capable of integrating the management of the workforce, of estimating the cost per activity carried out , to propose work networks, to offer visibility on the operation, among others.

To contextualize the capabilities and benefits that this technology offers, let’s start by clarifying what a WMS is? WMS is warehouse management software that facilitates real-time inventory control and management and also enables centralized management of operational processes developed within a warehouse, thus facilitating the coordination and optimization of logistics operations. . The benefits that implementing the technology brings with it are considerable, however, this article focuses on demonstrating some of the quantitative and qualitative benefits that implementing a WMS would bring, rather than as a technology. , as a strategic solution within the offer. chain. :

Improved Inventory Control and Visibility: Real-time inventory control and traceability is perhaps one of the most important components of a WMS. By implementing it, it will be possible to know exactly the position and movements of the inventory, from receipt to shipment. In addition, product rotation is optimized using variables such as batch, expiration date, date of manufacture, serial numbers or other configurable values, reducing obsolescence, inventory. excessive returns and expiration date.

It should be noted that according to Gartner Group, the correct implementation of a WMS can increase inventory accuracy levels above 99.5%.

Improved service levels: Having a planned and accurate inventory will improve the accuracy and agility of processes, which has a direct impact on service levels for the end customer. By implementing WMS as a logistics solution, it is possible to achieve 99% on-time fulfillment, 99.7% order accuracy, and increase order picking speed by 40%.

Optimization of inputs and outputs: In addition to knowing the location of the inventory, the WMS as a solution also allows to manage and plan the processes of arrival and departure of inventory. This translates into a noticeable improvement in relations with both suppliers and customers, for example, suppliers will perceive shorter waiting times at docks and in loading and unloading processes, on their side, customers will see improved delivery times and less inaccuracy. some orders.

Not to mention that it is also possible to generate more visibility, control and productivity in operational processes such as receiving, storage, replenishment, preparation, assembly, shipping, among others.

Increased productivity: With a WMS, there is flexibility to determine the best way to execute the operational processes of each company, clearly supported by technological features such as the use of radio frequency devices for reading codes to bars, in addition there is easier integration with other solutions such as voice-activated picking.

All of the above has a direct impact on the productivity of each process as considerable savings are generated in task execution times in addition to higher levels of accuracy and efficiency resulting in a better environment. work because by noticing that they are more productive, employees decrease their stress level, increase
their motivation and their sense of belonging to their functions.

Implementation of logistics techniques: With a WMS, the implementation of logistics techniques such as picking replenishment, batch picking, cluster picking, consolidation, opportunistic cross-dock flows or Flow Thru, among others, is facilitated. Techniques which, without automation, would have a complex manipulation and little adaptability to changes.

Lower Costs: All of the benefits that have been mentioned above ultimately translate into a direct reduction in operating and logistics costs as well. This is a significant advantage since any reduction in costs and more if generated by process improvement, will translate into greater profits for companies.

Other advantages of having a WMS as a strategic solution for the management and control of warehouses are: space saving, ease of definition and adaptability of preparation places, better control in the allocation and execution of activities, security in the storage and processing of information and a significant improvement in billing management.

Setting up a WMS is undoubtedly a strategic decision that will positively transform not only logistics management, but also the overall performance of a supply chain, adding value to the product that reaches the end customer.

To assess the acquisition and implementation of this solution, the selected WMS must adapt to the requirements of greater efficiency and speed of response typical of logistics activity and allow agile and precise management of the warehouses in which it is located. implemented. The decision must also be accompanied by the selection of an experienced service provider with a relevant methodology for the transfer of knowledge and guaranteeing good maintenance and support processes.



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