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WMS is an invaluable tool for improving your
organization's productivity and customer focus. Here is a list of some of
the benefits that you can expect to get.
Customer Service
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Better Informed Warehouse Manger - Warehouse Manager has a very
clear picture of the status of each customer orders, as a result he can
give a true and accurate feedback to the customers. Information like
percentage of order that has been completed, expected shipment date and
problems in meeting schedule can be passed on to customer for his
satisfaction. Advanced shipment notification helps customer in
preplanning his further processes.
-
Improved
Customer Relationship - WMS aids in providing a comprehensive
database of customers and their preferences in terms of product demand.
This information can be effectively utilized by Customer Care and
Business Development departments for Customer Relationship Management.
-
Accurate Shipping of Material - The system keeps an intensive check
of the goods or stock units meant for different customers and flashes an
alarm/warning if the goods meant for one customer are mistakenly placed
in cartons meant for other
Productivity
-
Optimum Utilization of Resources - Automation and streamlining of
processes ensures that operational bottlenecks are eliminated and
productivity increases. As a result all resources - man, machine, and
money are utilized to their optimum level. Apart from the system no
additional manpower or special machinery is required in order to
automate the process for an efficient and proper handling of the goods.
-
Better
Efficiencies - Intensive checks are kept at each and every stage
which safeguards against possibilities of errors in inventory records.
As the items are systematically stored and retrieved, no time is wasted
in searching for items not in stock and more than one order can be
processed at any given time. This results in the increase of
efficiencies, eliminating wastage of time due to errors.
-
Better Productivity Monitoring - By keeping track of the operator's
and staffs' activities, their productivity can be monitored. This aspect
is of particular importance in case of productivity based remuneration
schemes.
-
Multiple Order Processing - More than one order can be processed at
any given time helping in better resource utilization.
Costs
-
Low
inventory carrying Cost - The main goal of WMS is controlling and
streamlining the flow of inventory in a profitable and productive manner
thus optimizing all resources.
-
Short Payback Period - Payback period of WMS project will be very
short because we are addressing the warehousing area where at-least 60%
of organization's working capital is tied. The results of such savings
are immediate and apparent.
-
Optimal Level of Inventory - In an average business around 60% of
the working capital is tied down in the inventory; the percentage is
even higher in trading business. In an ideal situation warehouse should
maintain optimal level of inventory at any given time avoiding both
under and over stocking. If the Warehouses are overstocked that means
excess working capital is tied in inventory which is dead money. Under
stocking leads to delay in customer orders and even cancellation of
orders at times. Thus actual picture about the inventory status in the
Warehouse have valuable financial and strategic implications. WMS not
only streamlines the flow of inventory but also tracks the inventory at
various levels of processing thereby enabling decision makers to view
actual picture of inventory at any given time and take appropriate
steps.
-
No Extra
Skills Required - When deciding for automation, one of the major
concern of management is that they have to hire technical people at all
levels and retrain the existing workforce. But in WMS the programs are
so designed that no special skills are required to operate the system
even at lower level. Programs for shop floor are specifically designed
to run on hand held radio frequency terminals and emphasis is on scanner
based data inputs. Therefore same workforce can very effectively be used
for implementing WMS.
-
Better Revenue Realization - Companies often loose considerable
amount of revenue due to :
o
excessive / under stocking as
explained above
o
incorrect tendering due to
inaccurate knowledge of available stock
o
Over / under shipping to
customers.
o
Wrong consignments.
o
Inaccurate billing.
o
Delay in order processing
leading to order cancellation.
WMS helps in
controlling these losses to a large extent.
Transparency & Security
-
Improved Transparency - WMS provides diversified all-embracing
reports for almost any plausible aspects of activities and substantiates
the fact that working of Warehouse is made 100% transparent. Each and
every activity can be tracked, reported, monitored and consequently
controlled. These reports are web based and are platform independent
applications. Therefore reports are visible to any one who is willing
and authorized to see. This feature is especially beneficial for multi
location Warehouses and sales offices.
-
Higher Security - WMS incorporates distinct features for functions
to be performed by Manager or Operators thereby eliminating the chances
of wrong data entry. WMS makes information readily available to only
those who have permission to see it. For example the operators are not
entitled to view the important MIS reports.
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