Warehouse Management Software Can Pay Itself Back in a Short Period
Warehouse management software helps you to manage receipts of goods, storage, picking and dispatch in a way that:
- Makes it possible to track the movement of all items into and out of the warehouse, as well as any movements inside the warehouse (something difficult and expensive to do, if at all possible, with manual control)
- Enhances the accuracy of stock records, making them more dependable for actions such as replenishment and answering customer queries
- Leads to better customer service as their queries can be answered quickly and authentically (instead of vaguely, based on hopeful assumptions)
- Speeds up picking and dispatch when orders come in, as the exact location of each item is known to the system
- Reduces costs of warehouse operations as workers can be given precise directions for receipt, storage, picking and dispatch of items
We now look at the software features that make these possible.
Controlling Movements
Electronic ASNs - Advance Shipping Notes - help the system to advise concerned persons to prepare for receiving specific consignments at the warehouse. The goods received can be checked against what was expected to be received.
Modern warehouse management software uses RF Barcode Readers to read the barcode labels attached to all packages and containers. The information read thus is transmitted automatically to the software residing in the central computer.
The software will check appropriate storage locations to see which ones are available and pass on storage instructions for each consignment. In the case of large warehouses, automated cranes and conveyors will respond to these instructions by moving the item to the specified location. For smaller warehouses, material-handling personnel will know exactly where to put each consignment.
The software will also control any inside movements so that the system will know exactly where each item is located at any time.
As customer orders are received, the software will send picking instructions to material handlers (or automated equipment) specifying the location from where to pick an item. Shipping department will receive shipping instructions, possibly including even the particular trailer to load the shipment and which shipments are to be clubbed together in one trailer.
The software can then go on to track the shipment until it is delivered to the customer.
A Key Benefits Provided by Warehouse Management Software
Accuracy and visibility are improved by such real time systems that record data as each event occurs, including every movement of each item. Additionally, the system will typically record items earmarked for picking, and monitor the status of items ordered from suppliers. With this kind of information, users can confidently answer customer queries regarding availability of stock and its location (where items are stored at geographically different places).
Cost reduction is another major benefit. The discussion above points to the many ways savings occurs. For example, RF barcode readers eliminate the need for time consuming and error-prone manual recording of details. Location monitoring of each item makes it possible to give precise picking instructions saving time and costs of searching for items when orders are received.
Levels of inventory can be reduced as the dependable records eliminate the need to hold “buffer” stock. Additionally, the software can monitor the turnover volumes and compute economic stocking and reordering levels.
The savings from all the above can quickly pay back the costs of the warehouse management system.