Benefits of a Warehouse Management System

The benefits of an automated warehouse system are extremely far reaching. While cost savings are an unquestionable benefit of implementing an automated system, the effects that such a system can have on customer service can enhance customer loyalty and result in increased sales. In fact, accurate and timely delivery of customer orders is often more important than price. With an automated warehouse, you will realize higher fulfillment rates due to accurate visibility of inventory, eliminate shipping errors through line-by-line confirmation of order lines, and greatly reduce the time required to get orders through your information system and out the warehouse doors.

Internal cost savings affect the bottom line immediately. With inventory accuracy in excess of 99%, safety stock can be reduced substantially, directly affecting the capital cost of inventory and freeing up cash flow to be invested in more profitable areas. The overall productivity of warehouse labor will rise dramatically when tasks are assigned according to set rules focused on overall efficiency. Staff training will be reduced as personnel will no longer have to be as knowledgeable about products or warehouse layout.

Other benefits to be realized by the implementation of an automated warehouse system include

• improved customer satisfaction due to more accurate orders, more timely shipments, improved fulfillment levels on standard stock, faster turn-around on special orders, and real time visibility of order status to warehouse floor
• more effective use of warehouse space
• reduced labor costs
• extremely high inventory accuracy (99%) year round
• dramatic reduction in training costs
• higher service levels with reduced inventory levels
• elimination of physical inventory through implementation of cycle counting
• savings from reduced customer errors
• savings from reduced inventory write-offs