Develop A Solid ROI Before Making WMS Decisions

Successfully putting a Warehouse Management System (WMS) in place can bring tremendous benefits for a firm, but this is not an endeavor that can jumped into without careful consideration. When it comes to buying Warehouse Management Systems, developing a solid return on investment is a step that simply cannot be skipped.

Each business will have its own unique requirements, but some basics are universal. For example, compliance, tangible returns that can be measured, and intangible returns that are harder to validate must all be considered.

A careful look at labor savings is in order, which can be attained by reducing the number of workers needed to keep up with customer demand or finding ways to accommodate increases in demand without adding on new staff. WMS can help boost productivity gains by streamlining processes and introducing organization and discipline.

Take A Closer Look At Inventory Savings And Compliance Costs

Inventory savings must also be considered. Inventory tends to be a significant cost for many businesses, and reducing stock levels without negatively impacting a firm’s ability to meet demand is vital. A WMS can help boost warehouse and inventory accuracy and bring visibility to real-time inventory, keeping lost product down and minimizing overstock situations. In addition, those distributors that deal with date-sensitive products can use a WMS to help manage date rotation.

Compliance costs can also hurt the bottom line, and this is another area where WMS can help. For example, such a system can help deal with orders that have special handling requests or unique labeling requirements. It can also help distributors avoid service failure penalties by managing customer service level agreements.

Estimates show that implementing a WMS can help reduce inventory carrying costs by up to 15 percent and slash customer returns by 25 percent. Moreover, it can boost space utilization by as much as 30 percent and improve equipment utilization by 25 percent, to name just a few.

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