Like many industries, warehousing and logistics have been significantly impacted by the technological revolution. The increasing consumer expectations, the pressures on global supply chains and shortages in labour have led to many businesses turning to technology to help alleviate these pressures and reduce costs. While an investment in modern warehousing technology can seem like a drain on your budget, it can significantly impact your bottom line in a good way. Here, we take a look at the reasons to consider investing in modern warehousing technology and how it can benefit your productivity and your budget.

Reduce your labour costs

As a typically labouring intensive operation, warehousing staffing costs can take up a significant proportion of your budget. In some cases, a high turnover staff or an ageing workforce can put further pressures on an already busy operation. However, there are a variety of modern warehouse management systems (WMS) that can relieve this burden, allowing you to benefit from:

• Automation – Whether used for picking and packing or moving items around the warehouse, opening doors or switching lights on or off,  automation frees up human workers for the more complex tasks you need to complete. In addition to this, you’ll see a reduction in labour costs, fewer errors and better productivity which can only improve your bottom line.
• Centralised data – Modern warehousing systems centralise data from across your warehouse or warehouses. This means that you will have immediate access to accurate data which can give you a real time picture of your operation. Effectively, they streamline inventory management and reduce the risk of errors.
• Optimising your space – Often having a heavy footprint, warehouses are expensive and renovations and expansions can be even more so. Therefore, optimising the space you have is crucial. While manual stock management may work quite well in your warehouse, it can lead to inefficiencies. Warehouse management systems provide tools to ensure that you are using your space effectively.
• Improving movement – By analysing your inventory, and suggesting storage locations this can reduce time taken for workers to find space for consignments. In addition, warehouse management systems can also help create picking roots for pick and pack operations which increase the efficiency of the process.
• Personalisation of operations – In addition, warehouse management systems suggest long-term storage options for specific types of goods for. For example, if you retain high value goods and prefer to use your mezzanine floor for such processes, you can program your WMS to apply an algorithm to any inbound goods that fits this classification, ensuring they are all stored together.
• Better customer satisfaction – Since the pandemic, customer demands have risen and a 24/7 operation will certainly feel the pinch when it comes to getting items in and out in shorter periods of time than ever before. Automating at least part of your warehouse operations will allow you to work around the clock, fulfilling orders and accommodating late requests more easily. Not only this, but as we have mentioned, with fewer errors, your customers are more likely to get the right orders on time, leading to better satisfaction.

Choosing wisely

Obviously, there are many modern warehouse management solutions (WMS), and not everyone will work for your operation. Typically, when choosing a WMS, it is wise to look at

• Integration – If you already have in-house systems, a new system should seamlessly integrate with your existing infrastructure.
• Scalability- Take a look at what options you have if your operation grows. Good software should grow with you.
• Real time data – One huge benefit of WMS is that it can provide real time data on your inventory and will enable you to make on the spot decisions, with the right information to guide them.

While all this may sound a little complicated, it is well worth partnering up with a provider that will talk you through the benefits of utilising warehouse management systems to better increase your productivity and efficiency. This will, in turn, positively impact your bottom line.