storage IT l
Warehouse Management Systems (WMS) can provide a huge boost to a company’s logistics, but introduce an IT structure that is too complex and you could be stockpiling trouble for the future rather than curing a logistical headache. Alan Garford, the director and founder of Think IT Systems Ltd, explains how picking the right logistics software partner is vital if businesses want to save money through efficient warehouse processes.
IT’s not difficult I
T solutions for warehouse logistics need not be complicated or expensive. Maintaining good and accurate information on stock enables the speedy and efficient supply of goods to customers. However, many organisations lose sight of their stock because they have processes in place that are either too slack or too draconian – and you would be surprised at how many suffer from the latter. Apart from the obvious day-to-day operational features, good logistics software should also offer maximum space utilisation, added value for customers by allowing them direct internet access to create picks and review their stock inventory, FIFO (First in First Out) options such as batch, date, delivery and absolute, and finally a system that will automatically alert you when issues arise.
Poor stock control is a drain on financial and staff resources, but WMS are often only as good as the people using them. Make processes too complicated and human nature is to bypass them. Once the workforce start taking short cuts, the usual
management response is to add more layers of control which typically compounds the problem.
Choose the right partner Choosing the right IT partner that understands your business, so that software fits neatly with your operations, is crucial. When Think IT Systems first developed the software for Think Warehouse we did it in conjunction with renowned logistics
30 ShD December 2011
www.PressOnShD.com
company AMCO Services Ltd. We knew we were getting the design right when after a beta trial AMCO’s operatives clamoured for the system to be switched back on.
Ease of use is vital and the training of warehouse staff should reflect that. A swift and efficient training regime for operatives and management, full consultancy on the best roll out process and practical help, like configuring the different barcode labels and making sure the labelling on the racking is correct, should all be standard elements of a WMS installation.
But no matter how well staff adapt to the new technology and how smoothly pre-planning goes, I accept that the transition to a new system will still be a fraught time for the customer. To help make the changeover as stress-free as possible, and with the minimum of disruption to operations, the IT provider should include in the price on-site back- up on the day, as well as remote support to nip in the bud any possible problems that might surface.
Stock control
However, while having confidence in your IT partner is crucial for making the transition to a new system as seamless as possible; ultimately the success of any WMS will be judged on the impact in two key areas – financial and accuracy of stock control. In the current economic climate the pressure to cut costs is great, but just throwing a WMS into the mix without proper planning can exasperate problems rather than solve them.
Intangibles are the time lost playing ‘hunt the stock’. If implemented properly modern technology such as barcoding and RFID can boost stock standards dramatically and provide an audit trail and complete traceability of a piece of stock. We have customers who have gone from an average stock accuracy of 74% to 98% within two weeks of Think Warehouse going live.
Cost effectiveness
To get to this level of performance, the software will not blow a big hole in your budget and you should quickly recover your initial outlay. The WMS provider will be able to give an illustration on the cost effectiveness of the new IT infrastructure proposed, including the expected payback, which will typically be within six months of implementation.
In these cash-tight times, there are misconceptions about the affordability of dragging your warehouse logistics into the 21st century. Depending on requirements, a good WMS can start at less than £10,000, plus a small monthly fee. However, renting is an option that is becoming increasingly popular, especially
I would split the benefits of good IT into two categories for the profitability of your warehouse – tangible and intangible. Tangibles include improved productivity with faster and more accurate processes for goods receipt, stock maintenance, pick generation, fulfilment and despatch. Also scanner guns do not lie or mistype, which should result in massively reduced stock losses.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68