As the title suggests, we are going to explore the way forward when it comes to efficient warehouse management. While the business world has been quick to adopt the latest technology and adopt many tools to work better in many aspects, there are still some aspects that have been ignored. The main reason for this is that these aspects are not considered the ‘revenue generators’ but rather than as cost centers. That is the case with warehouse management. However, it would be shortsighted to leave warehouse management behind in your digital transformation process.
The adage of ‘a penny saved is a penny earned’ applies here. What is more, warehouse operations should never be considered in isolation. The warehouse can affect many areas of operation within your company and thereby change the way your stakeholders (both internal and external) perceive your company.
Some of the main stakeholders that would be affected by warehouse management would include:
Customers: In a world where customers rule supreme and are prone to sharing information on the worldwide web, you need to ensure that your customers’ needs are met with. While the connection between warehouse management and customer satisfaction seems distant, it is not. If anything, improper warehouse management has a direct impact on the delivery of products and services to customers, and this affects customer satisfaction.
Plant managers: It has often been seen that in manufacturing companies, the plant managers rely on the efficiency of warehouse managers and the accuracy of the information they have to run operations well. Any misses on the part of the warehouse can directly impact the manufacturing process.
Accounts payable: The inventory that a warehouse keeps is procured by the accounts department. Incorrect records can either result in the procurement of stocks that are not required or in the scarcity of necessary stocks. This, in turn, affects the way the accounts payable department works.
Finance management: The stocks you purchase and maintain in your warehouse has a direct effect on working capital, which is where finance management comes in. Over or under the inventory of the vital parts can result in an imbalance in the working capital requirements.
The environment: We all owe it to our planet to be as environmentally friendly as possible. When you manage warehouse operations using paper records, this hurts the environment.
As you can conclude, modernizing the management of your warehouse is essential to your business. The right WMS (warehouse management system) that synchronizes with your ERP can go a long way to help you manage the needs of all the stakeholders mentioned above and save on costs. When you further explore the benefits of an optimum WMS, one factor that will emerge is the benefits for your warehouse team. They will benefit from the solution in terms of requiring lesser training, improved efficiency, lesser errors, quicker services, and overall better planning.