What are the advantages of Warehouse Management System (WMS)?
Guided reading
1. Improve accuracy:If the actual inventory on the ledger does not match the actual inventory in the
1. Improve accuracy:
If the actual inventory on the ledger does not match the actual inventory in the warehouse, the situation is usually very chaotic. When the warehouse picker goes to retrieve parts but the parts do not exist (or the quantity of parts is insufficient), a series of manual checks and backtracking must be completed to solve the problem and issue an order. Inaccurate inventory results may have wide-ranging consequences, including:
Poor purchasing behavior and excessive safety stock are related to buyers' lack of confidence in record accuracy
Delay in order fulfillment due to product loss or misplacement
Sales losses due to stockouts and exceeding commitments
Costs associated with issuing and managing delayed deliveries
Low labor productivity related to searching for lost products
Accelerating shipments to customers may lead to increased shipping costs
2. Less errors:
Real time radio frequency (RF), i.e. WMS driven by handheld barcode scanning, is self checking. When a transaction occurs, the system will verify the activity, and if the system detects potential issues, it may even prompt the user with a question. Errors are common in all functional areas in a paper-based environment. The impact of an error in a feature can be amplified throughout the entire operation process. Receiving errors (such as incorrect product numbers, incorrect quantities, etc.) may cause delays in many operations.
3. Automation reduces errors:
In paper-based manual data input environments, the likelihood of data input errors also increases. Human beings make mistakes; WMS is not available. Research shows that on average, one out of every 300 keystrokes is an error. Even if such a mistake occurs, the cost can be enormous.
4. Reduce labor costs:
By eliminating manual data input, the associated fixed labor costs are immediately reduced. These reductions alone are sufficient to justify the investment in automated data collection, which is a key component of WMS. But other labor costs have also decreased.
Example: Due to the less time required to correct errors, management work has also been reduced. Fewer errors and more timely and accurate information also mean fewer and more productive meetings between managers and executives. Generally speaking, automated data collection reduces labor costs by reducing overall setup, idle time, reminder costs, and time spent correcting errors.
5. Improve productivity:
The more manual processes WMS replaces, the more you can focus on simplifying other factors that help improve productivity, such as inventory movement in the warehouse.
