What is a warehouse management system?
In recent years, you've probably heard or read about warehouse management systems (WMS) in trade magazines and online. So what are they and how do they work?
A WMS is a software solution that can provide your business with a complete picture of your product inventory levels in real-time. More importantly, a WMS can help your business make strategic decisions based upon intelligent data, such as:
- Knowing when to order products
- Knowing when to schedule a pickup
- Understanding which products are moving or not
- Determining when sales peaks occur and how to order and ship accordingly
- And much more...
These are just a few of the basic concepts behind the purpose of incorporating such a system in a supply chain. So let's discuss a few of the ways this type of system can help a business save money and time while streamlining supply chain practices.
1. Intelligent Design and AUTOMATED RESPONSE
The beauty of a WMS system is that it can reduce the amount of work involved in planning and executing the logistics of shipping and receiving.
For example, one Averitt customer that uses our WMS in conjunction with our warehousing service rarely even handles their products. When inventory reaches a certain point, the system notifies the customer and us that it is time to schedule an import shipment that originates in China. The system is set up to ensure that the cargo will arrive to our distribution center at the most optimal time so that inventory levels are never too high or too low (which all factors into the cost of warehousing and meeting customer demand).
2. Inventory Visibility
A warehouse management system allows your business to maintain an accurate picture of what you have (or do not) have currently in stock. This is made possible by the use of scanners that check items in and out of a facility.
Rather than relying on spreadsheets that are filled in by hand, this system provides a real-time updated score of inventory levels, which reduces the potential for human error.
3. Strategic Planning
A WMS keeps track of historical data across time. Being able to compare inventory levels and actions taken during peak seasons allows businesses to plan out their buying practices well into the future.
Knowing when to keep certain products on hand for delivery and distribution can help your business cut down on overhead costs that are associated with holding onto inventory that doesn't move.
4. Technology Integration
Many warehouse management programs can actually be integrated into other applications that your company may use, such as a business management system or a transportation management system (TMS).
For example, one of our e-commerce retail clients has integrated our system with their purchase order (PO) management system. Whenever their customers make a purchase from their website, our program is notified and then our associates schedule the product for home delivery via parcel service. At the same time, the WMS system is updated with the parcel tracking number which is then sent to their customer. This situation gives their customer the tracking ability that helps foster a positive experience that leads to more returning customers.
In the end, our customer is able to run their entire e-commerce business from their home without having to worry about processing and storing inventory.
5. Ability to focus on growth
By utilizing a warehouse management system, businesses can increase their supply chain performance and streamline the process of getting products to their final destination.
When your business doesn't have to juggle the hassle of managing transportation and warehousing, you are able to spend more time on growing your business and increasing market share.
Averitt's WMS is just one part of the overall supply chain solution that we can provide customers with. From importing to inventory management and distribution, we can offer tailored solutions to fit any need. Better yet, when you use Averitt, you can always count on the simplicity of:
One Contact. One Invoice. Zero Worries.
That's The Power of One.
If you would like to find out how Averitt can help you streamline your supply chain with a Custom Warehouse Solution, see availability in your area or schedule a demo, please contact:
Cody Smith at cosmith@averittexpress.com
