Having a Warehouse Management System in place has quite numerous benefits including faster picking and receiving times, increased order accuracy and better inventory control. There are other less obvious but equally compelling reasons why a company might decide to invest in a WMS. Let’s discuss in detail what they are.

Staying Compliant With Customer Requirements

A lot of customers command that distributors meet certain criteria, such as supplying particular electronic inventory data or electronic data interchange to assist the company to handle shipping more accurately via an industry-supported system. Many logistics managers decide to install WMS because they come across requirements from customers that cannot be met by current systems. Customer expectations will only increase with time, causing WMS to be flexible in order to embrace these requirements. Many major distributors are investing in a WMS that will handle ongoing customer needs and create profit while at it.

Tracking Employee Metrics

Having a WMS allows you to understand how employees perform when doing their jobs. Managers are then able to use this information to reward high performers and identify those that are not doing so well. Employees feel secure and validated knowing that managers rely on real data instead of subjective feedback from others. At times you even find instances where customers also use these metrics to encourage team building by publicly charting team and individual performance using a centrally located screen in the warehouse. It was found that this encouraged friendly competition between employees and brought everyone to work together as a team. Additionally, it has also helped teams improve and pick up their pace because they know and can see how many orders remain to be filled.

Keeping Up With Competitors

Purchasing a WMS is also a way to stay ahead of your competitors. When you have a proper warehouse management system in place, you are in a position that allows you to achieve what other companies can’t. Your business is able to perform better systematically and financially. Forward-thinking distributors want to plan ahead so they can be the first one to achieve a substantial return on investment.

Reduce Employee Theft

Warehouse-related theft has increased and has cost the industry major loss. Employee theft more especially affects distributors who deal with copper pipe, wire or other accessible high value items that are easy to sell. A WMS can help combat this problem by assisting management to keep track of what exactly has gone missing and when in order to respond early.

Improving Supplier Confidence and Warehouse Appearance

A warehouse that is disorganized does not make a good impression on potential customers or suppliers. Distributors at times implement a WMS because they know that it attracts potential future partners who will want to be part of operations so planned and organized. An environment that seems like it has everything in place can go a long way towards impressing suppliers and maintaining trust. A supplier that walks through your warehouse and sees a cluttered mess will be under the impression that you don’t represent their product well and may assume that you don’t meet any of their strict requirements or get orders done accurately, on time.

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Source: Supply & Demand Chain Executive