As a distributor, one of the key areas in your business is where your actual product is located: your warehouse. You may have a single warehouse or you may have multiple warehouses. In any case, an effective warehouse management system equates to lower costs for your company and premium service to your customers. Here are 3 key benefits to an effective warehouse management system.
Better efficiency in bin location management
Whether you have a large or a small warehouse, when there are orders to fill with several item lines on them, it can mean a lot of moving around in the warehouse in order to physically fill the orders.
A way to avoid this is to have your software create a pick ticket in the order that the item locations are set in your warehouse. An efficient warehouse management system should be able to to manage bins, or locations, throughout a warehouse, or even in multiple warehouses.That way, the people filling the orders will have a natural progression through the warehouse, effectively saving time by working more efficiently.
Less shipping errors
A good warehouse management system should have a proper validation system to ensure that the correct items and the correct quantities are being shipped to your customers. Too many incorrect shipments can be a profit killer. It is costly, both in manpower and actual tangible costs, to process returns and to re-ship the corrected orders. In addition to those costs, there is also the intangible cost of hampering, or even losing, the relationship with your customer.
Often times when companies are looking for a good warehouse management system, the order validation is an area that is overlooked. Make sure that your warehouse management system has the means to check your orders to ensure that all items and quantities ready to be shipped match up with the items on the sales order. Making sure that you get a warehouse management system that has this capability will reward you with ROI many times over.
Better customer service
Having less shipping errors is going to enhance your customer service and strengthen your relationship with your customers. There are other ways that your warehouse management system can help you to give better service to your customers. Through the process of validating the shipment with the sales order, your system should be able to record which items are in which box. This way, if the shipment gets split up, and your customer calls wondering where the rest of their order is, you can better help them by knowing the contents of each box, and the tracking number for each of those boxes as well.