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Strategic Tips For Smart Warehouse Management

 
2018-03-02 
Ben Berkimer 
 
Strategic Warehouse Management is crucial for any and all businesses operating in today's marketplace. Globalization has created a whole new set of opportunities as well as challenges creating the need for today's global enterprises to be as efficient and effective as possible so that they can produce and function successfully. 

In this blog we will take a look at the importance of warehouse management systems (WMS) and more specifically the procedures involved in maintaining efficiency and effectiveness.

Importance of WMS

So why is WMS so important? Well, let's use Amazon as an example. The Amazon warehouse that is the center for all transactions on their website is not a small space. The warehouse employs 1,500 people to receive, organize, and ship all items. With how many daily transactions occur on Amazon, it is crucial to have workflow efficiency and organization and tracking of all processes within their warehouse. High volume often involves high risk of failure. 

To eliminate failure and improve efficiency, Amazon has implemented a WMS to not just track the inventory within in the warehouse, but also the movement of inventory and also the employees so worker and inventory efficiency are at their highest.

The Process

A WMS essentially tracks the flow of goods or materials to, through, and out of the warehouse. It streamlines the process of receiving goods or materials and then shipping them back out. In more detail, this includes receiving, putting away, organizing, shipping, and tracking inventory. 

In today's marketplace it is important to optimize the flow of materials and create efficiency in as many areas as possible. Minimizing costs, errors, and time are all things that can be obtained through an effective Warehouse Management System.

Accounting

Warehouse management system efficiency should lead to more accurate accounting information. Knowing inventory and being able to track items to make predictions in the future is incredibly beneficial to the accuracy of financial statements. This information is important for management and also in some cases investors and creditors and when a warehouse is operating inefficiently it can cost a business valuable time and money.

Conclusion

As we can see, Warehouse Management Systems are important for warehouse functionality and sustainability especially in the case of Amazon whose warehouse functions at a high volume. While strategies in a WMS require in depth knowledge about the warehouse as well as the inventory, it is well worth the time to implement a WMS. Lastly, it is imperative that all data within the system be updated with complete and current information. While a WMS is important for any business, it will not be successful without the right information. 


 
 

 

 

 

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