The Future of B2B Warehouse Management and Order Management - The Paperless Solution
If you are serious about streamlining your processes to minimise cost and boost your bottom line, it’s about time you looked into the paperless option. Savvy B2B businesses are doing it already, so you should too.
The High Cost of Inefficiency in Traditional Warehousing and Order Processes
A study by the Centre for Economics and Business Research noted that businesses could lose up to 20% of their revenue due to inefficiencies and errors stemming from outdated manual processes.
Paper-based Records and Manual Data Entries
Paper-based records and manual data entries are being replaced by automated solutions that streamline operations, enhance productivity and reduce environmental impact – which also means saving time and cutting costs!
Traditionally, warehouse and sales order processes were heavily reliant on paper - from goods-in to fulfilment through to dispatch. This reliance on paper was not only inefficient, took time but also ate into your profits. Going paperless enables you to run efficient, cost-effective and accurate warehouse and fulfilment processes, enabling you to run a lean inventory and get those orders out on time!
Implementing an automated inventory management system can reduce warehousing costs by up to 35% by minimising excess stock and reducing storage space requirements. (Source: Global Inventory Management Report, 2024).
What is a Paperless Warehouse?
A paperless warehouse involves – yes, you’ve guessed it – using as little paper as possible for warehouse management operations. This approach includes everything from goods-in to sales order processing and fulfilment to dispatch. By automating these processes, you can achieve real-time visibility of all your stock across all channels and locations. This not only enhances data accuracy and improves operational efficiency but also reduces human error, saves a lot of time, cuts costs and adds to your bottom line.
The Importance of Paperless Solutions in B2B
In the B2B sector, where large volumes of goods are managed, the advantages of a paperless warehouse are significant. B2B transactions typically involve complex orders, large inventories and multiple stakeholders - making efficiency, accuracy and error-free operations essential.
Here’s How Paperless Solutions can Change B2B Warehouse Management and Order Management for the Better:
1. Enhances Operational Efficiency
According to research from Capgemini, businesses that implement integrated order and warehouse management systems see on average a 20% increase in inventory accuracy and a 15% improvement in order fulfilment rates. This integration leads to a reduction in order processing times by up to 25% (Capgemini, 2022).
A key advantage of a paperless warehouse is streamlined operations. Automating sales order processing and real-time inventory tracking eliminates traditionally time-consuming tasks associated with paper documentation. By reducing manual data entry and paperwork handling, you can allocate resources more effectively, speed up processes and increase overall productivity. In a B2B environment, where delays can cause major financial losses and damage business relationships, these efficiencies are critical.
2. Reduces Costs
By increasing accuracy and reducing errors, paperless processes can lower operational costs, save time and make employees accountable for their tasks which ultimately contribute to a healthier bottom line. For B2B companies, where margins can be thin, these cost savings can be critical in maintaining competitiveness. Automated systems can help reduce the costs associated with excess inventory, stockouts and returns, which are common pain points in B2B transactions.
Paperless systems can cut labour costs by optimising picking routes and reducing the time needed for manual input. This helps in maintaining high productivity standards without negatively impacting work quality (Warehouse & Logistics News 2023).
3. Reduces Pick Errors
In UK warehouses, pick error rates average 1-3% and a single picking error can reduce the profitability of an order by up to 13% (Warehouse & Logistics News 2023).
Handheld PDAs with barcode scanning and the Android Stock App enable digital picking and can reduce errors to below 1%. Staff can scan items directly off the shelf, ensuring the correct items and quantities are picked.
Pick errors often lead to packing errors and result in a number of problems downstream, often ending with disappointed customers receiving the wrong products.
Have you ever thought about my time your warehouse team spend fixing picklists that contain items that cannot be found?
The process of manually updating picklists and reprocessing the associated sales orders all affect your ability to despatch sales orders in a timely fashion.
4. Reduces Pack Errors
Packing errors can be costly, resulting in dissatisfied customers and negative feedback on marketplace channels. This poor feedback can significantly impact your product's visibility in search results.
Negative reviews not only lower your product's visibility but also discourage potential customers from purchasing.
Achieving a high ranking in search results is essential for maintaining visibility and attracting buyers.
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The top three organic search results in Google get over 54% of all clicks, with the first result alone capturing 27.6% of clicks. Moving up even one position can dramatically increase click-through rates, particularly from the second to the first position, which can result in a 74.5% increase in clicks (Backlinko 2023).
The cost of return shipping must also be accounted for, as must the cost of restocking items or managing the shrinkage caused by damage to items during shipping.
Errors at the packing station can add up fast and have serious long term consequences on your ability to grow sales.
5. Makes Stock Takes More Efficient
Handheld PDAs with barcode scanning improve stock take accuracy and speed. Digital stock takes update inventory in real time, capturing variances and preventing sales of unavailable or damaged items.
Cut the manual data entry and time lags that paper based systems generate and move to real time inventory control!
6. Improves the Goods-In Process
Using handheld PDAs with barcode scanning to receive goods-in eliminates manual data entry, human error and ensures real-time inventory updates.
Scanning items in as they are delivered means your inventory levels across every channel are updated in real-time.
When combined with real-time inventory management across all channels, the minute your stock arrives, inventory levels are updated on your eCommerce platforms and products are available to sell.
7. Automates Purchasing and Replenishment
Automating purchasing and replenishment based on real-time inventory levels prevents stockouts and overstocking.
An automated system effectively manages stock levels, facilitating quick replenishment through stock transfers or purchase orders instead of human intervention for tracking and recording.
Preset alerts notify you when stock reaches specific levels and needs replenishing, and these alerts can be customised for different channels and locations.
A report from Shopify highlights that automated inventory replenishment methods enable businesses to accurately track inventory levels, set reorder points and automatically generate purchase orders. This reduces the risk of stockouts and overstocking, ensuring timely replenishment based on actual demand and lead times (Shopify).
8. Increases Real-Time Data Accuracy and Accessibility
Paperless systems enable your business to run a lean inventory across all sales channels and locations.
With real-time data and visibility, it ensures that stock is available at the right location, time and quantity - thereby reducing storage costs and improving sales order processing efficiency.
Cloud-based multi-location warehouse management and order management offers the flexibility for real-time access to warehouse operations from anywhere.
Every item has its own audit trail, giving you the ability to track its journey from goods-in to dispatch.
28% of companies lack visibility of stock across stores and warehouses, leading to inefficiencies and lost sales opportunities - Shopify.
9. Boosts Your Sustainability and Environmental Impact
Going paperless isn’t just about efficiency and cost, it’s also an environmentally friendly choice. By reducing paper consumption, businesses can lower their carbon footprint and contribute to sustainability goals.
Reducing paper use can decrease a company’s carbon footprint by up to 60% (Environmental Paper Network).
For B2B companies, demonstrating a commitment to sustainability can also strengthen relationships with business partners who prioritise environmental responsibility.
In B2B, where productivity, cost control and increasing your bottom line are essential, transitioning to a paperless warehouse is a strategic move with significant advantages. Adopting digital solutions streamlines warehouse management and order management processes, enhances overall business performance and enables you to scale your business.
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