The WMS Domino Effect
You expect a warehouse management systems (WMS) solution to deliver process improvements to your facility. But what might be less apparent is the efficiencies and cost savings an organization experiences in areas other than the warehouse or distribution center. A great WMS solution can boost employee and management morale, improve overall company revenues and help create future paths for growth—and these are just a few of the benefits.
A Better Warehouse
Warehouse or distribution center cost savings go straight to a company’s bottom line. One of the easiest ways to achieve efficiencies is through an investment in a new (or better) WMS that delivers shorter delivery times, lowers transportation costs, or institutes new processes that increase employee productivity.
At its most basic level, a WMS can also reduce paper-based processes that directly hinder company growth. Paper-based systems inherently lead to more errors and customer frustration. And every time a warehouse manager has to resolve an error, it costs the company money. If the company is looking to compete on picking accuracy, delivery and improved customer service, it’s time to abandon paper and toss it out with the whiteboard and markers.
Growing Your Business
The right WMS will help convert tribal knowledge, or knowledge that is held by a single person, into a valuable company asset that is shared by many. It helps avoid scenarios where an informal knowledge holder is suddenly unavailable, causing processes to grind to a halt. For smaller companies, tribal knowledge may not represent a major stumbling block. For companies on a growth path, however, having the warehouse or distribution center’s key processes held solely in the brain of a long-term employee just doesn’t make economic sense.
There are other key management issues that the right WMS can help address. When a more automated system is in place, management stress levels go down and efficiencies go up. Built-in employee performance metrics help managers establish better accountability levels – and enable executives to rely on statistics, not subjective opinions, when evaluating employee performance.
Training with Ease
In addition to reducing labor costs through increased productivity, the proper WMS will help any organization lower training costs. Warehouse turnover can negatively impact the bottom line, so minimizing the number of new employees by keeping existing ones more engaged and freeing up the time spent on new employee training can mitigate cost impacts. The goal would be for a WMS to have enough ease-of-use functionality that a warehouse employee could be productive after a single day of training.
Taking Advantage of the Domino Effect
All things considered, a WMS can have a positive ripple effect over an entire organization, from human resources to the C-suite. It’s time to make this domino effect work for your organization. Look at your WMS to ensure it’s working hard enough to help your business reach its overall goals, and not just streamlining your warehouse operation.
Interested in Learning More?
Of course you are. Join the WMS Group on Thursday, November 15 in Denver to tour CPSDistributors, a customer and user of PathGuide’s Latitude WMS, and Rampart Supply, a customer and user of Infor’s TWL. All distributors with an interest in warehouse management systems are invited to join us for the opportunity to tour these facilities, discuss best practices and participate in focused discussions of all things WMS.
To register for the meeting click here.
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