Ten reasons SMEs should use WMS
23 July 2013
It is too easy for SMEs to dismiss the option of automating their warehouse on the grounds that they are not a large enough entity to warrant it, says Snapfulfil.
However, for SMEs cash flow and costs are just as critical as for a large corporate insists the IT supplier which offers ten reasons why SMEs should consider the installation of WMS software.
1. Lost sales due to out of stock items
By using an accurate stock inventory you can ascertain quickly where and when stock levels are low and respond immediately with re-ordering, ensuring sales are not lost to competitors.
2. Wasted money through overstocking
Running a successful business is all about preserving and protecting cash flow. By keeping stock at optimum levels, you can free up capital for other projects, such as expanding a product range, marketing or possibly recruiting new staff. An accurate stock inventory system will allow you to identify less popular products, ultimately freeing up cash for higher turnover items.
3. Improved accounting accuracy
Stock is an asset and as such appears on your balance sheet, directly impacting on your profit and loss reports. If you maintain an accurate inventory, your accounting will also be accurate.
4. Hidden problems
Close scrutiny of inventory levels will allow you to identify and address issues as soon as they appear rather than months later during the annual stock take, by which time money has been lost from the business. Warehouse management system software will allow you to constantly reconcile sales and purchases.
5. Improved customer service
If a company keeps up to date on inventory levels on a regular basis, you'll be able to identify incorrect shipments at the earliest opportunity, allowing you to you to communicate accurately, efficiently and quickly with your customers. In turn this will build trust and confidence in your brand and business.
6. Improved re-ordering process
Warehouse management system software will give you immediate and comprehensive order status information and allow you to track everything with a high visibility and total transparency.
7. Reduced theft and losses
It’s a sad fact that human nature is such that some people succumb to temptation. However if your staff know that you manage an accurate inventory system, then the light fingered individuals may be deterred from acts of theft. If you manage accurate stock levels, then in the event that theft occurs, you can act swiftly, decisively and with conviction. Equally you might be losing stock to damage or poor traceability.
8. Reduced warehouse costs
Warehouse management system software enhances your picking, packing and despatch processes, improving efficiency greatly. The bottom line is that your warehouse staff will be able to process more orders in the same amount of time.
9. Efficient stock-take and audit processes
If your stock inventory levels are up to date all the time, then the need for regular monthly stock takes can be removed or at very least will speed this tedious and time consuming process up no end. Likewise the quarterly or annual stock take will be a stroll in the park rather than a marathon around the warehouse.
10. The power of the software as a service model
The concept behind the SaaS model is to replace upfront hardware and software costs with a pay as you go / monthly instalment model. This way companies are not locked into a rigid three to five year payback period, typically experienced with conventional software. As SaaS costs are governed by the level of usage, they can be scaled easily and quickly according to fluctuations in the marketplace. In addition to the cost benefits that a warehouse management system will bring, you can drive costs down further and ease cash flow by adopting a SaaS / No Capex model.