As a business owner, and the decision maker, you want to ensure that the benefits of each investment you make in the company outweigh the costs. All successful businesses take the time to consider the cost but the most successful businesses can look past the cost and see the return. This post will lay out some of those details as you consider investing in a warehouse management system for your business.
A Warehouse Management System is built on the premise that if everyone performs their task right the first time it will make it easier and faster for everyone else throughout the organization. This requires mapping out your scenarios and developing standard operating procedures to handle the daily activities and exceptions that occur in any given warehouse or yard. Despite the best laid plans, we all know that exceptions and even errors are going to happen in a warehouse environment on a regular basis.
Many companies think they do not have inventory problems because they are at 99% or better dollar value accuracy. What we find when you look at the variance reports of a physical inventory is that most companies operating a paper based warehouse are typically 40-60% accurate. This means that if you go out and inventory 100 items only 40-60% will be exactly correct in a typical paper based environment. These variances throughout a warehouse inventory are costing companies serious money.