The Covid-19 pandemic wreaked havoc on logistics and distribution companies, causing widespread supply chain disruptions. Many businesses faced catastrophic failures and are still in recovery mode, highlighting the need for robust contingency planning in warehousing.
Unforeseen circumstances can cripple a warehouse’s operations. Implementing a Warehouse Management System (WMS) is vital as it digitizes and streamlines all warehouse functions, providing a buffer against disruptions.
Read on to discover how a WMS can enhance business continuity and fortify your supply chain.
What is a Warehouse Management System (WMS)?
A Warehouse Management System (WMS) is a software application that streamlines and centralizes all operations within a warehouse. It helps businesses track inventory levels, manage orders, optimize picking and packing processes, and gain valuable insights for better decision-making.
Challenges to Warehouse Resilience
The warehousing landscape has evolved significantly. Warehouses now leverage technology more than ever to bolster their supply chains. Facing similar challenges? Let’s break down the three common issues in warehouses and how they impact your business continuity.
1. Not Enough Stock On Hand
Many warehouses use Just in Time (JIT) practices to minimize costs, ordering only the needed items to maintain a steady inventory rotation. However, JIT fails during unplanned disruptions, causing costly delays, compromised product quality, and decreased customer satisfaction.
The solution? Safety stock. This is extra inventory set aside for emergencies like sudden demand surges or supplier delays. A WMS can help you determine the optimal amount of safety stock to maintain by analyzing historical data and predicting future needs. Manual calculations can lead to errors, while a WMS automates this process for better accuracy.
2. Lack of Visibility
Imagine managing a warehouse with manual inventory records. You might have a specific number written down, but a physical check reveals a discrepancy. This lack of visibility creates significant problems, potentially leading to downtime. Natural disasters can further exacerbate these issues.
Warehouses often deal with large volumes of stock, making manual tracking impractical. With the rise of online orders and faster delivery demands, a tool for complete inventory oversight is essential.
A Warehouse Management System provides a 360-degree view of your inventory and all warehouse functions. It allows you to track product movement at all times and set automatic reorder points to replenish stock efficiently.
3. Slower Delivery Times
Today’s consumers increasingly shop online. To stay competitive, businesses offer faster delivery options. However, a vulnerable supply chain can lead to delays and longer lead times. Here’s where a WMS can help.
By digitizing picking and packing processes, a WMS reduces lead times and ensures faster deliveries.
6 Benefits of Using a Warehouse Management System
A Warehouse Management System is crucial for any business looking to improve its supply chain. It offers a central hub for controlling all functions, creating a streamlined operation and preparing your supply chain for disruptions.
Considering digitizing your business? Here are six key benefits of a WMS that can help you achieve business continuity:
1. Enhanced Visibility
One of the biggest advantages of a WMS is improved visibility. With numerous products to manage, a system that logs accurate information and provides complete oversight is essential. You’ll know the exact quantity of your stock and its movement.
Modern WMS systems, like Canary7, offer real-time data and accurate details on all your inventory, regardless of the quantity. This bird’s-eye view empowers you to make data-driven decisions. WMS systems often utilize barcodes, RFID tags, and other tracking sensors to control stock and provide crucial insights. This information can be used to prepare stock units, set reorder points, and avoid stockouts.
2. Real-Time Inventory Tracking
Real-time tracking is a game-changer for warehouses. You’ll stay updated on stock levels, eliminating the risk of overstocking or understocking. Real-time inventory management involves instant recording of every transaction, providing accurate information for a more efficient supply chain.
Real-time data also allows proactive responses to disruptions that could impact workflow. This empowers businesses to maintain their supply chain and prevent problems before they arise.
3. Faster Order Fulfillment
Modern businesses often juggle multiple sales channels, which can overwhelm outdated warehouses. Without proper software and infrastructure, bottlenecks can occur, leading to longer lead times and dissatisfied customers.
A modern warehouse should automate order processing to handle multi-channel fulfillment effectively. A robust WMS acts as a central hub for all order fulfillment needs. If you’re looking for an innovative solution to your order fulfillment problems, choose Canary7-Warehouse-Management-System. Our warehouse management system has an easy-to-use interface that allows integrations with some of the most popular eCommerce stores and shipping options.
4. Optimised Warehouse Space
A WMS should offer flexibility and scalability to optimize warehouse workflow and maximize space utilization. It analyzes data to suggest the best techniques for storing stock and minimizing wasted space. This can involve designating specific areas for product categories and creating efficient picking paths.
Ultimately, these strategies will lead to quicker product placement and retrieval, creating a smoother workflow environment. Reduced operating expenses free up funds for allocation to other areas of your business.
Canary7’s WMS offers agile inventory management that scales with businesses of any size. We understand that businesses evolve, so we provide a highly scalable WMS model with optimized picking and packing strategies. Canary7 is your one-stop shop for creating an optimized workflow.
5. Improved Inventory Security
If your business deals with high stock volumes, you’re more susceptible to inventory shrinkage. This refers to lost stock due to damage, theft, errors, or other factors. A robust WMS ensures accurate recorded information.
Without proper technology, limited inventory visibility can lead to profit loss and unhappy customers. An integrated WMS offers up-to-date information and complete visibility into product movements.
6. Mobile Accessibility
Warehouses are dynamic environments, and workers are constantly on the move. Online inventory management allows you to track stock from anywhere. With a mobile WMS, you don’t need to be physically present in the office to manage your warehouse.
Many cloud-based WMS solutions offer encrypted data and security measures to protect information from unauthorized access. Mobile management empowers anyone with a compatible device to access data. This allows workers across multiple stations to check inventory records for accurate picking and provides real-time data for improved workflow.
Data-Driven Approach
Statistics show that businesses adopting a Warehouse Management System see significant improvements in efficiency and accuracy. Studies reveal that implementing a WMS can generate a return on investment (ROI) of up to 25% within the first year.
The Cost of Downtime: Invest in a WMS for Business Continuity
Warehouse Management Systems are essential resources for businesses seeking to optimize workflow and build resilience against disruptions. Canary7 is a reliable solution that strengthens your supply chain.
Our WMS boasts features like accurate forecasting, scalable design, and a user-friendly interface, making it the ideal solution for your warehouse needs. It’s designed to streamline every aspect of your workspace and optimize the fulfillment process.
Ready to future-proof your warehouse operations? Contact Canary7 today to discover how our WMS can enhance your business continuity and efficiency!
Mishal Khan
Author
UPDATED ON: 15th May 2024
Mishal is a dedicated copywriter and content writer with experience across various niches. Currently, Mishal is focused on writing guides and other compelling blogs on warehouse management, logistics and more, crafting engaging and informative content to help businesses understand and master their supply chain. Passionate about delivering quality content, Mishal aims to make complex topics accessible and enjoyable for all readers.
Subscribe to get latest posts straight in your inbox.