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Why Warehouse Management System Is Important for Supply Chain

Warehouse Management System | ERP Singapore

Why Warehouse Management System Is Important for Supply Chain

A supply chain involves the flow of goods and services, starting from raw materials to production work-in-process to finished products delivered to the customers. In this chain, warehousing is an integral part, which ensures logistics functions quickly and effectively. It’s quite impossible to imagine a free-flowing logistics supply chain without a powerful warehouse management ERP system that can remove all bottlenecks including irregular supplies, delayed sourcing, and more.

In short, warehouse ERP software allows you to deliver products and services with accuracy and efficiency.

“ If you think of standardization as the best that you know today, but which is to be improved tomorrow; you get somewhere. ”

- By Henry Ford, founder Ford Motor Company


In this article, you’ll find the highlights on how warehouse management systems benefit supply chains.

Inbound and Outbound Process Optimization

Versatile warehouse management systems (WMS) are equipped with tools that can implement process automation, establish key performance indicators, and align the ongoing operations to gather real-time information.

WMS software can effectively determine the use of both labor and space to minimize the wastage of resources. The intelligent technology included helps users identify the best location to keep certain materials or products or equipment necessary to bring optimal workflow in the warehouses.

Thus, the systems can efficiently optimize every operation included in inbound and outbound processes.

Reduce the Expenses of Operation

Well-designed WMS software automate all warehousing supply chain operations. This process standardization allows suppliers to plan more frequent cycle counts, which gives them consistency in business and save them from having to expedite their shipments in order to meet the customers’ demands.

Besides helping storehouse staffs perform their tasks with complete efficiency, an apt WMS software also ensures that the warehouse runs more smoothly with fewer people involved in monitoring or managing each supply chain operations.

This way, the system improves the effectiveness of operations and reduces the involvement of excess human resource, leading to an increase in the volume of delivery along with a reduction in costs and time.

A free-flowing logistics supply chain needs a powerful warehouse ERP software to remove the bottlenecks caused by irregular supplies, delayed sourcing, and more.

Enhanced Inventory Visibility

Keeping track of the exact levels of inventory is crucial in warehousing.

WMS software is an efficient tool that collects relevant data through barcoding, serial numbers, and RFID tagging of the stocks. This information is used for tracking and monitoring of each item that is moved in and out of the warehouse as well as in logistics during transportation of goods from one location to another.

This increased traceability improves forecasting. Furthermore, smart analytics enables businesses to predict the demand for particular products among customers during the specific time of the year, allowing them to stock enough goods and ensure that they reach the buyers on time, before they perish.

WMS software collects all relevant data of the stocks, increases traceability, and improves demand forecasting.

Attain Balanced Inventory

Balanced inventory refers to the practice in which stock levels of different products are maintained according to their demands.

In other words, rather than holding warehouse space with items that no one wants, you can use it to stock goods that receive more orders. While this process can be quite complex, with a right warehouse management ERP software achieving a balanced inventory is a breeze.

The system is intended to provide accurate demand forecasting and based on it generate optimal inventory levels. This greatly improves space utilization in the warehouse and minimizes the chance for low or overstocking.

Why Warehouse Management System Is Important for Supply Chain

Transparent Reporting Tool

The major benefit of warehouse management systems in supply chain and logistics businesses is the ability to detect the issue sooner and respond immediately.

When a vendor in the network is unable to fulfill orders on time, the WMS notifies all related users in the chain, the moment the information is updated in the system. This provides businesses with ample time to find an alternate source, without letting the customers experience or know about a potential delay.

Improve Relations with Customers and Suppliers

Benefits of warehouse management systems are not limited to the organization, but much beyond. With such high monitoring capabilities, these applications are able to optimize the entire logistics and supply chain, the most obvious benefit for suppliers and vendors.

Customers, on the other hand, enjoy faster delivery of their favourite products, with fewer order inaccuracies. Thus, WMS software provides the right support in improving the reputation of your business among both customers and suppliers.

Centralized Platform

WMS software offers a centralized platform to track, monitor, and manage all operations functioning across the logistics and supply chain. It connects all departments dealing with storage, shipping, and distribution to overcome the information gap and eliminate the friction among suppliers. Thus, this guarantees a continuous flow of goods, in and out, determining a proficient logistics supply chain system.

“ If you can’t describe what you are doing as a process, you don’t know what you’re doing.”

- By W. Edwards Deming


In brief, a well-equipped warehouse management ERP system is designed to bring fruitful impact on your logistic supply chain businesses. It improves the consistency to provide quality services, helping your business to establish as a trusted provider of goods and services, gain superior brand reputation and increases customer retention.

The sooner you implement a WMS, the quicker your organization would be able to achieve success and profitability.

With over 27 years of experience in designing business management solutions, Focus Softnet can provide you with the top warehouse ERP software that fits well with your company’s needs and would guide you through the implementing process.

Click here to register and easily view warehouse ERP software demo or get expert help in choosing the right business solution.

Why Warehouse Management System Is Important for Supply Chain

 

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