How to Reduce Costs through Advanced Warehouse Management Solutions

BusinessManagement

  • Author Suzi Mezze
  • Published December 27, 2009
  • Word count 411

Manufacturers and distributors are under pressure to increase the productivity and performance of the warehouse operation in the face of growing costs and complexity.

This article discusses how advanced warehouse management solutions are giving warehouse managers the competitive edge whilst driving down costs and increase revenue.

The main issues undermining warehouse management performance are:

 Ineffective order management

 Excessive labour costs

 Inefficient asset value

While some manufacturers remain welded to processes, practices and systems, market leaders are taking warehouse management to new levels. They are adopting advanced systems that help them deliver the perfect order, reduce labour costs and maximise equipment.

These systems enhance warehouse operations by leveraging next level capabilities such as: inventory management, work and task management, radio frequency and voice direction, labour management, slotting and kitting and light assembly. These proven systems help manufacturers and distributors maximise product placement strategies prioritise tasks, implement productivity standards and increase logistics efficiency.

These systems use the following criteria: item, location, quantity, and order information to manage stock. While conventional warehouse management systems only focus on locating inventory, advanced systems manage the whole process of material flow: receiving, put-away, cycle counting, picking, replacement, packing and shipping.

The key capabilities of an advanced warehouse management solution are:

Inventory Management – this allows identification and tracking of inventory with sufficient detail to allocate, fill and deliver orders as accurately and as often as possible.

Work and Track Management - this manages the flow of demand by balancing workloads and tasks with affordable resources

Radio Frequency and Voice Direction – This helps improve productivity of distribution and fulfilment processes by using hands free connections enabling workers to operate without reliance on cumbersome lists, vastly improving their productivity and order accuracy.

Labour Management – this helps maximise worker performance in the warehouse by obtaining workforce planning and staffing capabilities.

Slotting – this helps maximise productivity and minimise travel time between location to location and minimises disruption resulting from changes in demand.

Kitting and Light Assembly – this helps with customising products at the distribution stage of the process.

These are the main benefits of advanced warehouse management systems. Companies can reduce costs and increase competitiveness by remaining focused on key performance indicators now driving warehouse performance. After implementing this type of system, companies can:

 Strengthen order management

 Increase labour productivity

 Maximise asset use

 Reduce inventory costs

Advanced warehouse management solutions prove to reduce direct operating costs and increase overall revenue. Find out what Supply Chain Management Software can do for your business.

Advanced warehouse management solutions prove to reduce direct operating costs and increase overall revenue. Find out what Supply Chain Management Software can do for your business.

Visit: http://www.infor.co.uk/solutions/scm/

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