2 weeks ago Last updated November 18th, 2021 685 Reads share

Why is Warehouse Management So Important?

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Like all other business operations, managing the warehouse can help drastically improve the efficiency and flow of work. Running a successful business heavily relies on warehouses as they store all the inventory. Though it might seem simple, warehouse management is much more complicated than simply being a pen and paper job. This can be understood by the fact that a minor irregularity between the outbound and inbound stock can throw an entire operation off balance.

Warehouse management can even give veteran managers a tough time depending on the size and nature of the inventory. It is because of this reason most businesses, irrespective of their size, choose to seek help from reliable warehouse management systems. These systems have essentially transformed the way we track and manage inventory for the better. This has considerably sped up the process of delivering goods and placing new replacement orders.

We know warehouse management is important, but the question is why? To answer this, let’s look at what an ideal warehouse management system does and how it helps improve a business’s performance.

 

Upgrade warehouse processes

In every warehouse, there are a specific number of processes that are considered to be of primary importance. Every step of the operation is vital to maintaining the delicate equilibrium of these processes. If even a single step ends up lagging behind, all the processes like receiving and delivering goods could fall apart.

With dependable warehouse management, this is how these processes could be optimized.

Receiving goods

Firstly, an effective management system keeps us updated on any incoming stock that is due to be stored in the warehouse. With this information, a manager can make the necessary preparations like arranging personnel and equipment required for the same. Timely reception of the inbound inventory is also ideal for the inspection of the product quality and quantity.

Moving

After receiving an inventory order, the next is putting away the received goods. For this, it is better to assign a space for the new stock in advance, which can only be done when managers have prior knowledge of the coming shipment. It speeds up the process of putting away the products in their respective locations.

Received inventory storing

The moved inventory is stored in its assigned place until an order comes through. For storage, making judicious use of the available space is prime. This includes ensuring there is enough space for the current stock and other goods that might be on their way.

Picking

Upon order confirmation, the next step is to choose the ordered item. This process may take a considerable amount of time if there is no technological support. With picking tech in warehouse management systems, the time is greatly reduced and order accuracy increased.

Packaging

In this step, the ideal packaging involves knowing the nature of the product and the kind of packing it requires. Using damage-proof packing techniques and reducing packaging costs through efficient material use are also important.

Shipping

After successfully packing the correct order, its shipment takes place. For this, having technical support to verify and track shipments comes in handy.

 

Simplify supply chain

The operations taking place inside a warehouse are possible because of a vast network of supply chain business partners that function outside the warehouse. Keeping track of all these aspects of the supply chain is much more complex than it appears. With a management system, getting in touch with our logistics partners or suppliers at the right time becomes simpler.

 

Consolidate selling destinations

With booming e-commerce, there is virtually no limit to the number of websites a product is sold at. However, as orders keep coming from different online channels, it becomes harder to see where the inventory is going. A warehouse management system helps keep up with the inventory even when the inbound and outbound traffic is high.

 

Improve customer satisfaction

Stay on top of product availability

Customers usually don’t like to wait for products to be restocked. Warehouse management can keep prospective customers from seeking alternatives by making sure that goods are restocked before they completely run out.

Track demand fluctuations

Management offers an insight into what products are doing well and need restocking. On the other hand, it also helps weed out products that are low in demand so their orders can be limited during the next inbound shipment. Customers are bound to be happier when their favorite in-demand items are always in stock. This is important to keep the accuracy of retail inventory, which a 2015 study showed is accurate only about 63% of the time.

Deliver accurate orders

A delivery is concluded only when the customer receives exactly what they expected and in tip-top condition. This provides the maximum value to the customer, ensuring they place more orders in the future.

 

As businesses flourish and people consume more, the complexity of the entire process also heightens. We’ve come a long way for warehouse management to still be dependent on a single person checking the inventory. A warehouse management system does not just simplify the work, it also exponentially improves the quality of every warehouse process.

Jonathan Liebenberg

Jonathan Liebenberg

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