How Warehouse Management Systems Pay for Themselves

Warehouse ManagementWhen looking at integrating a warehouse management system into your existing structure, the initial investment may be a little intimidating. There is a large cost associated with beginning a restructure. The payoff outweighs the initial cost over a period of time.

There are 7 key areas that offer ROI opportunities; Inventory management, utilizing labor, improved labor productivity, customer satisfaction, reduction in wear and tear, reduction in paperwork, and space savings

Inventory Management

By having a warehouse management system, inventory can be better managed. It creates a visibility of all products within the warehouse, knowing exactly how much of each product is on hand and exactly where in the warehouse that product is.
Inventory management helps cut costs when purchasing products. No longer will products be purchased haphazardly. Knowing exactly how much of each product has left will allow for more accurate ordering and maintaining only what is needed in the warehouse.

Utilizing Labor

When a warehouse management system is in place, workers are more efficient at the task at hand. They know the exact location of every product is and don’t have waste time searching. An organized warehouse will have similar items in the same area, allowing for like tasks to be done in a smaller area.

The amount of errors will be significantly reduced. In a warehouse management system, every item is scanned in and out of the building, whereas before, tracking and inventory counts were done by hand and yielded a large margin of error.

Improved Labor Productivity

In a warehouse management system, a company is able to better organize where incoming shipments come into the warehouse. If a product comes into the warehouse on the north end of the building when it is needed on the south, it takes a worker’s time, and the company’s resources to ensure that product is where it is needed. With a warehouse management system, the truck will know what is contained in a specific shipment and will be able to deliver the product where it needs to go before it is unloaded. This saves the company and the worker precious time and resources.

Customer Satisfaction

While it may be hard to directly measure a customer satisfaction rate, keeping regular customers, as well as gaining new ones through word of mouth, will expand your business.

Having complete visibility of your warehouse will ensure work orders are able to be completed before a customer is promised delivery. A warehouse management system will also ensure that the right product is getting out at the right time.

Reduction in Wear and Tear

Knowing where products are supposed to go before they arrive insures they are delivered to the appropriate part of the warehouse. This reduces the need to transport them within the warehouse. Forklifts and other equipment will begin to have a longer operating life due to the less wear and tear. Each time you touch a product is a risk for damage, so by automating these touch points you can greatly reduce your monthly damage adjustments.

When a warehouse is segmented, there is the ability to assign specific machinery to specific areas. By doing so, the operating life of the machinery is, again, extended due to the less movement within the warehouse.

Reduction in Paperwork

In an automated warehouse system the paper trail necessary for operation will be significantly decreased or completely eliminated. Every task will be delivered to the appropriate staff member via their handheld device.

Space Savings

Having a better organized warehouse will allow more space savings. This allows for a more defined storage area and bin locations. A warehouse management system will also allow you to do just in time delivery and reduce the amount of over ordering, creating more space for other products or eliminating the need for a larger storage space.

If you are currently running Intacct or Quickbooks and would like to schedule a free consultation to see if QStock is right for you as your next potential Warehouse management system, Contact Us Today by filling in the form below. We would love to hear about your business and how QStock can help you achieve your business goals.

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