Why visibility is the real problem for warehouses
How implementing a WMS helps wholesalers and 3PLs overcome the most common warehouse problem.
I speak daily to businesses with warehouses ranging from 8,000sq ft to 70,000sq ft, and they are almost all worried about the same thing: visibility. Lack of visibility is most often caused by continuing to use paper-based systems when warehousing is quickly becoming more and more electronic.
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An over-reliance on employees using paper-based methods is one of the main reasons for the loss of visibility. An example I heard in one business was that a picker would begin packing one item, get distracted, forget to finish their previous order and move onto the next. There was no way for the business to track that this had happened until the delivery was never fulfilled – often only coming to light when the customer complained. If they’d have been using handheld scanners as part of a wider WMS system, this would have been tracked live and told the picker (and you as their manager) they were yet to complete the previous job.
With warehouse space now at a premium, it’s now about better using the space you have. A static warehouse map is difficult to keep track of, as it usually sits with the warehouse manager’s experience (or sometimes instinct) to say whether orders can fit into a warehouse, and relies on pickers manually communicating updates from the warehouse. These are non-added-valued tasks that detract from employees using their time more effectively elsewhere. A live map allows a business to see ‘heat’ on the map, and effectively map out their warehouse in a way that both uses all the white space as well as reducing picking times for the most popular items. And all in real-time.
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Many businesses I’ve spoken with have a seasonal aspect to the stock they hold, but still, have no measurable way to predict and deal with the seasonal fluctuations. One garden hardware business knew they would sell BBQs in the summer but repeatedly ran out of stock. Forecasts were based on records from different systems that were incomplete or inaccurate, rather than being able to make pre-emptive business decisions using live warehouse map data and predicting trends from reports on a live dashboard. This is surprisingly common problem facing wholesalers, 3PLs and distributors when fulfilling promotional offers.
The root problem when it comes to lack of visibility is relying on paper. Implementing a WMS alleviates the stress and interruptions within your business and keeps a line of communication open at every level. No more cluttered desks, no more forgotten picks and no more stock shortages.
