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6 Benefits of a Warehouse Management System (WMS)

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6 Benefits of a Warehouse Management System (WMS)

When we talk about operations, processes or logistics diagnostics, it is always necessary to emphasize the importance and the benefits of Warehouse Management System (WMS) for companies that are increasing their productivity or are having significant internal growth.

For such companies it is almost mandatory to know the features of a WMS, this is because the tool benefits the operational efficiency of your organization, monitoring workflows at all levels. This increases productivity and improves asset utilization. In addition, integrating a WMS facilitates inventory control in a way that increases accuracy, throughput and speed.

To learn more about this topic, the following article will explain the six main benefits of a warehouse management system

1. Optimizes space and reduces operating costs: One of the key benefits of a Warehouse Management system

WMS optimizes processes in the warehouse by analyzing the best use of space based on the characteristics of the task and the product, this in addition to reducing the time implemented to locate each item in a suitable place, considers the best locations to store them.

With this solution, companies can reduce their operating expenses and it is also important to help maintain the rotation of items in various practices, such as:

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FIFO

Also known as the First in, first out method, i.e., the batch of stock that enters the warehouse first will be the first to leave.

LIFO

Also known as Last in, first out, i.e., those products that are stored last will be the first out.

FEFO

Also known as First expires, first out, i.e products that expire first should be the first to flow through the supply chain, leaving the warehouse.

2. Visible and controlled inventory

The use of a WMS also provides accurate real-time inventory visibility, which not only allows companies to have control over all their supplies with greater confidence, but also helps to avoid backorders and dissatisfied customers.

With the information provided by this tool, warehouse staff can confidently decide which products are in high demand and which are not. This leads to higher revenues and lower losses for your business.

3. More efficient logistics operators

Warehouse management systems are better at assigning the right tasks to the right people at the right time, taking into account worker skill levels, distances between warehouses, equipment and available activities.

This is important because labor efficiency can be optimized through proper work distribution, i.e., operators focus on specific tasks that require greater impact and dedication, while the WMS automates the rest.

This simple, yet fundamental organization reduces errors, optimizes work time and ensures that your organization’s objectives are met.

In turn, scanning items as they enter the warehouse prevents products from being authenticated twice. This WMS feature saves time and speeds up the check-in process making your logisticians more productive.

Finally, KPIs can also be used for staffing analysis, which is important because labor is often one of the highest costs within your logistics center processes.

4. Improved traceability

You can easily track inventory items with a warehouse management system that uses lot and serial numbers. The former represents the group that manufactures the product and the latter identifies each item specifically. and serial numbers. The former represents the group that manufactures the product and the latter identifies each item specifically.

In addition, constant tracking of each product reduces potential redundancies in processes, allows for detailed planning and accurate inventory allocations, and provides current and retrievable information for future traceability, service maintenance or loss of information situations.

5. Optimized supply chain

A WMS optimizes internal warehouse operations, so that they can then be extended to a wider supply chain. In addition, it simplifies all kinds of processes on the fly, from inbound to outbound, increases operational efficiency and reduces costs.

In this way, each step within the supply chain will be more integrated, thus greatly increasing opportunities to improve the internal performance of the logistics center.

6. Internal Automation

A WMS can leverage other automation technologies within the logistics center, such as mobile devices, that can automate internal work assignments and support the transition from paper and paperless to an electronic activity recording system.

This simplifies the process, increases scalability and ensures accuracy of information.

The are multiple benefits of warehouse management system . These are recommended if you want your company to be better positioned in the marketplace and adequately meet your organizational goals.

If you want to know more about all the benefits that a WMS system brings to your warehouse, at sgv we offer a range of services that specialize in technical and logistical solutions to help you improve your business.

If you need more information, contact us, we have a specialized team to assist you.

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