Introduction
To make money, accuracy and control are critical for manufacturers. Unfortunately, most manufacturers waste hours and dollars redoing work that was executed incorrectly the first time. A benchmarking survey from the American Productivity and Quality Center (APQC) noted that top-performing organizations spend $14 less per $1,000 of revenue to operate their warehouses than bottom performers. For an organization with $100 million in revenue, that translates to a savings of $1.4 million per year. A warehouse management system (WMS) can control the details of your ERP to ensure that your business processes are completed correctly. Here are four ways you can use a WMS to bring greater accuracy and control to your business processes.
Track in greater detail
A WMS goes beyond simply tracking the total quantities of a stock item in and out of the warehouse. It provides quantities of the item at each bin or location level, along with status details, such as how many of the items are in receiving, stored correctly, picked, and dispatched. The rich detail in a WMS even enables cross-docking. When backordered items arrive and get scanned, a WMS can automatically re-route them directly to outbound trucks or rail cars, speeding fulfillment, increasing customer satisfaction, and eliminating the need for storage.
Optimize order accuracy
A WMS can include hands-free voice technology that lets workers operate free of cumbersome lists, labels, and scanners. They can speak into their headset to confirm the last few digits of an item’s code as they pick it, while the system checks and logs their work to minimize errors. Voice-enabled order picking can result in an accuracy rate of 99.9% (one error in a thousand picks), as well as a productivity improvement of 20%. In addition, a WMS easily tracks performance in real time to manage incentives, and it can be a coach, using voice-enabled technology to inform workers about their progress in meeting benchmarks.
Reduce waste
Because a WMS tracks detail such as expiration dates, it supports proper rotation of products and enforces principles such as first in, first out (FIFO) and first expire, first out (FEFO). This helps minimize obsolete and expired product. To utilize the right products first, your company must also organize its facilities so that these items are accessible. Working with an experienced consultant like Datix will ensure that you maximize your products and spaces to reduce waste. With 25 years in the business of supporting manufacturers and distributors, Datix is the ERP partner of choice for manufacturers that want a consultant they can trust to work with them every step of the way throughout their software solution.
Integrate to streamline processes
A WMS allows warehouse teams to connect with, manage, and orchestrate equipment such as scales, scanners, counters, and RFID in real-time, using these devices to streamline and optimize workflow. A WMS can also integrate with systems from third-party logistics providers (3PLs) to help ensure that billing and documentation get where they need to be. For example, if a pair of shoes needs to arrive with an invoice, it will be in the box. Integrating For those who need to integrate multiple pieces of software, consider a prebuilt, rapidly deployable application like Unity: Integration by Datix. Unity was designed with manufacturers in mind and fully scalable to maximize your ROI. Learn how our managed integration can save you 50 hours of work every month.
Wrap Up
Gaining accuracy and control of your warehouse through a WMS is the first step in transforming your business into an industry leader. The next step is to maximize other aspects of your ERP system to bring your organization to the next level.
Learn the Six Steps to Becoming a Data-Driven Organization
Hear our 10 Tips for Implementing a New ERP
Stay tuned for another post next week on warehouse management!
Read previous blog on Why A Warehouse Management System Delivers Greater ROI
Read previous blog on how to Boost Productivity and Reduce Cycle Time with a WMS
About Datix
With 25 years of experience, Datix is the partner of choice for ERP and WMS solutions. Unlike our competitors, Datix will work with you closely to understand your precise warehouse needs and act as a trusted consultant to offer you nonbiased guidance to maximize your software. No matter what challenges your company faces, Datix will support you every step of the way.
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Please note: This blog post was based on the Executive Brief Four ways a warehouse management system delivers greater ROI than an ERP system alone from Infor and updated by Datix
