According to Statista, the U.S. value-added warehousing and distribution market grew by over 15 billion dollars from 2010-2020. For growing manufacturers and distributors, fee-based, value-added services such as light manufacturing, assembly, and kitting and bundling can offer substantial new revenue streams.
However, offering these services in a warehouse quickly complicates inventory control. Using a warehouse management system (WMS) supports a wide variety of value-added services for different industries, a few of which are outlined below.
Electronics manufacturers and distributors can use a WMS to assemble small parts into kits that reduce handling, or organize different production runs to meet retailer-specific configurations. With so much recent change in demand in the electronics industry, it helps to add these new income streams with the support of a trusted partner. Datix has 25 years’ experience working with electronics manufacturers and distributors who need support throughout their software implementations and beyond. At Datix, we help our clients for the life of their solution and are always willing to offer guidance as the business evolves. Learn what Datix brings to electronics manufacturers.
Automotive manufacturers and distributors can use a WMS to support services such as quality control, finishing, and pre-processing. Many automotive manufacturers require that parts arrive just-in-time and in the proper build order, and a WMS can enable this through sequencing and Kanban delivery. If you want to set up your warehouse management correctly the first time, look to a one-stop shop like Datix. Datix has worked with countless automotive manufacturers and distributors who needed warehouse management, Kanban delivery, ERP, integrations and more. Learn what Datix brings to automotive manufacturers.
Fashion manufacturers and distributors can use a WMS to manage SKUs by attributes such as style, color, size, and fit. A WMS can help a distributor to build ratio packs that combine the required mix of sizes (2XS, 4S, 5M, 5L, etc.) for a given item.
Cold storage services
Cold storage services can use a WMS to drive business rules—such as automatically managing the right amount of blast freezer dwell time depending on a shipment’s temperature. A WMS can also perform services such as capturing summary weight by pallet, and recording the variable weight of individual units automatically.
Consumer packaged goods and food & beverage
Consumer packaged goods and food & beverage manufacturers and distributors can use a WMS to offer services managing customer-specific shelf-life days, and automatic holds for QA testing, settling, and bottle-aging.
Capabilities for All
A WMS has additional capabilities that simplify the complexity of value-added services. It can combine different orders into one big box if required, or postpone the labeling and final assembly of products until customer orders are received, lowering the inventory footprint of finished goods.
Because a WMS can track work for each client, and because it knows who performed the work, how long it took, and what materials have been consumed, it can provide detailed accountability when value-added services are invoiced. By supporting new sources of revenue, a WMS can help turn a warehouse into a true fulfillment center.
Value-added services have the potential to significantly increase your profits if you have a warehouse management and ERP system that can support growth. If you want to become the best in your industry, you must have the software and support to get you there. If you want a partner that will do what it takes to assist you in reaching your goals, look to Datix. With 25 years of experience, Datix is the partner of choice for ERP and WMS solutions.
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
Read previous blog on how to Gain Accuracy and Control in your ERP with a WMS
At Datix, the client comes first. We operate with a business-first approach, meaning that we take the time to understand each of our partner’s strengths and potential areas for growth. We act as a trusted consultant so you can receive nonbiased guidance to maximize your software. No matter what challenges your company faces, Datix will support you every step of the way.
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