Shape Up and Ship Out: Six Ways a WMS Drives Leaner Operations
Discover how distributors can uncover cost-saving opportunities and enhance productivity with WMS (warehouse management system).
Eric Allais, President & CEO at PathGuide Technologies, Inc., shares how strong warehouse management system software can save distributors time and money and boost productivity.
Lean Opportunities on the Warehouse Floor
While the idea of taking a distribution center and transforming it into a lean, mean distribution machine might sound like a daunting (and potentially costly) task upon first conception, optimizing for even better efficiency is likely easier than one might think. Running such an operation simply needs to begin right on the warehouse floor, where an understanding of the lean opportunities throughout the facility can be better cultivated. Then, new solutions can be implemented as needed – or existing systems can be optimized accordingly – to capitalize on them.
By following these steps, distributors can uncover cost-saving opportunities while boosting productivity throughout their warehouse environment. In fact, those with a warehouse management solution (for example, warehouse management software) are a step ahead of distribution companies that still rely on manual processes. From reducing paper waste and optimizing operational space to the more efficient movement of goods, warehouse management system software can help distributors achieve leaner operations while saving them more ‘green’ on their bottom lines.
To that end, let’s look at some of the keys to ‘leaner’ operations – and explore the corresponding benefits that can be realized, including cost savings and ROI.
1. Embracing paperless processes
At its most basic level, a warehouse management system (WMS) automates paper-based processes. When information is trapped on paper, errors and frustrated customers emerge – which, as we all know, negatively impacts a company’s reputation and growth prospects. It’s one of the top reasons distributors decide to turn the page on paper if you will, and choose to implement a WMS.
Take the warehouse that still handles receiving with a pen and paper. Not only would traceability be a significant challenge, but if (or when) the system fails, there would be very few ways to verify what happened. Nobody wants to pivot from their current task and dig through the details to find out what happened, especially knowing that the information might be unreliable anyway. Paving a paperless path with the help of a WMS is the best way to run a more efficient warehouse and keep operations lean for the long haul.
2. Minimizing waste to reduce sunken costs
Warehouse management system software can help reduce waste and save on operational costs by optimizing inventory levels, reducing overstocking or understocking, and preventing expired or damaged products from remaining on the shelves. By providing real-time visibility, WMS software can help companies manage stock levels more efficiently and cut down on the waste produced by excess inventory, expired goods, and otherwise outdated products.
In line with reducing overstocking, a WMS can also provide valuable data on inventory levels, the movement of goods, and other key metrics. This can help identify inefficiencies and areas for improvement, leading to better decision-making and more sustainable and cost-effective operations. This increased visibility can also help distributors establish baseline resourcing and budget goals, which managers can then monitor and track progress toward reaching those key objectives in real-time.
3. Maximizing warehouse space
Warehouse management solutions can help optimize a warehouse’s layout by considering inventory placement. WMS software, for instance, can recommend the best location for each item based on how frequently it is picked or group frequently picked items in a central location to reduce footsteps and travel time.
This can help increase the efficiency of the facility by minimizing the time and effort required to move items around the warehouse, as well as the total distance necessary for employees to travel while relying on equipment like forklifts.
4. Reducing shipping costs and excess packaging
Warehouse management software that integrates with parcel dimensioning technology allows distributors to optimize how they package their items easily. This is an effective and cost-efficient approach, especially considering how common the overuse of packaging materials continues to be in the distribution industry today.
This is important when you consider how frequently many simple, lightweight items are shipped in large boxes stuffed with dunnage to compensate for all the unnecessary vacant space. Underfilled boxes are one reason a carrier’s truck is often deemed full before reaching its weight capacity due to space restrictions. Fortunately, warehouse management solutions can help minimize the use of packaging materials.
5. Optimizing shipments and transport routes
WMS software is also frequently used to help distributors find the lowest available shipping rates or fastest delivery options for rush orders. By analyzing data on transportation routes, transportation management solutions can identify opportunities to consolidate shipments, reduce travel distances, and use more economical modes of transport. Equipping carriers, couriers, and drivers with the end-to-end tracking and management capabilities afforded by a WMS can help to flush out wasteful mileage and even further improve the overall efficiency of their supply chain.
6. Prioritizing worker & equipment safety
Not to be overlooked, safety is the number one priority in any warehouse or distribution facility, and distributors must make sure it stays top of mind when running their day-to-day operations. The Occupational Safety and Health Administration (OSHA), the federal agency committed to safeguarding worker health and safety, mandates that employers must provide employees access to safe tools and equipment and confirm that this equipment is maintained correctly.
Forklifts, man-up order pickers, and warehouse equipment require regular upkeep to ensure they function safely. Preventative measures like daily equipment safety checks can be easily automated with the use of warehouse management solutions to provide peace of mind while promoting smooth facility operation. Not only is this critical for worker health and well-being in the warehouse, but ensuring safe operations also minimizes the potential for incidents that could impact the business’s bottom line.
Maximizing Efficiency: Key to Competing in Today’s Market
Efficiency and cost-effectiveness in warehouse operations aren’t just options; they’re essential in today’s competitive marketplace. Distribution companies must embrace best practices for workers, processes, and equipment across their operations to reduce costly factors throughout warehousing facilities. Warehouse management software solutions play a critical role in helping distributors boost productivity and efficiency through leaner operations; doing so can help put their companies and operations on track to save more green in due time.
What strategies have you implemented to enhance warehouse operation efficiency? Let us know on Facebook, X, and LinkedIn. We’d love to hear from you!
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