Improving your supply chain with a WMS

A?warehouse management system (WMS) ?is one of the best tools you can use to optimise your supply chain. It can provide you with complete visibility and control over your inventory through inbound and outbound inventory management, helping you to make informed decisions for your business.

Not only can a WMS help to improve your supply chain, but it can also help to overcome common warehousing mistakes. By addressing these mistakes, a WMS gives you the ability to streamline tasks and identify unnecessary costs in the process leading to increased revenues and profits. This can improve collaboration throughout the supply chain ensuring you have the right inventory and the right time while also improving relationships with suppliers.

Gaining a clearer picture of your inventory through every stage of the supply chain process is just one of the benefits of implementing a WMS . A WMS can also help to streamline processes, improve efficiency and provide your workforce with the tools they need to identify issues and opportunities for improvement.?

If your organisation has faced difficulties managing a successful supply chain, then you may benefit from a WMS. In this guide, we’ll explore the typical supply chain management challenges you may face as well as provide you with some ideas on how a supply chain can be a great asset to your business.?

If you feel a WMS could be beneficial to your business and its supply chain, head over to our?warehouse management system ?page to discover a range of options.

Supply chain management challenges

The complexity of national and global supply chains makes them susceptible to significant challenges that hinder their efficiency. This is also emphasised by the fact that supply chains can frequently evolve causing unforeseen disruptions and barriers that also affect profitability and productivity.

Supply chain disruptions

Effective supply chains are reliant on a network of individuals, organisations, resources and activities that work in tandem together. If collaboration within the chain fails at any point, then this has a knock-on effect on other stages within the supply chain process.

These disruptions can occur at every stage of the supply chain, from raw material procurement to final product delivery. Bottlenecks within the chain can be caused by a variety of factors such as natural disasters, political instability, transportation issues, and supplier bankruptcy. Regardless of the cause, the impact on your business can be significant, resulting in production delays, inventory shortages, and increased costs.

Demand forecasting and planning

Demand forecasting is the process of predicting the demand for materials and products so you can deliver the right services and products to your customers at the right time. It also ensures you have a ready supply of materials without creating a surplus, which can otherwise lead to excess inventory further increasing unnecessary spending.

Various factors can cause issues with forecasting, making it harder for you to predict trends and demand patterns. These can include economic fluctuations, market trends and seasonal demand as well as changes in consumer behaviour.

Without inadequate forecasting technology and tools, it can become increasingly difficult to generate accurate predictions, further exacerbating issues with your demand forecasting and planning.

Inventory management

Inventory management is key for tracking inventory from manufacturers to warehouses and then onto the customers at the point of sale. When working efficiently, this should give you complete oversight and visibility of your inventory throughout the entire supply chain process.

When it comes to your supply chain, one of the main challenges of inventory management is dealing with demand fluctuations due to seasonality, trends, competition and economic factors. In turn, poor inventory management can lead to understocking, back orders, excess inventory, increased expenditure, lost sales and ultimately risks to your business’s reputation. It's essential to address these issues to ensure the smooth running of your business through efficient supply chain management.

Cost control

With so many moving parts, keeping costs under control through each stage of the supply chain stages can be a challenge.

Supply chain costs can be unpredictable and may result in cost control challenges for your business. Therefore, having a solid strategy is crucial to remain flexible, allowing you to adapt to the current market, and renegotiate with suppliers when needed. If left unmanaged without a viable strategy, these costs can quickly spiral out of control.

Digital transformation

When implemented correctly, digital transformation within a supply chain can revolutionise the chain, helping to mitigate risks and optimising costs. However, it requires the business and supply chain strategy to work in tandem with each other.

Supply chains can be slow to react due to the capabilities needed to compete. This can delay the processes needed to develop, test and implement digital transformation solutions effectively. Mismanagement during the implementation of such systems can cause more harm than good to a business.

How can a WMS improve the supply chain?

Supply chain management can be greatly enhanced by implementing a WMS into your process. WMSs offer multiple features and tools to give you overall visibility of your inventory, including stock in your warehouse and also stock placed in transit.

Many WMSs can be customised to your business needs, giving you complete control over which tools and features you need to optimise your supply chain effectively. We’ll cover some of the other benefits that a WMS can bring to your supply chain below.

Enhanced inventory tracking

A WMS gives you oversight of your inventory through every stage of the fulfilment process. This includes processing inventory as it comes into your warehouse right through until it has left the warehouse.

Through barcode scanning and RFID technology that is integrated with your WMS, you can quickly scan items which helps to facilitate quick and efficient recording of inventory. Accurate inventory tracking gives you real-time information on the count and location of your inventory, reducing the chance of human error.

Order accuracy

Implementing a WMS can help you automate the processes which are vital to the success of your supply chain.?

These automated processes are particularly beneficial during picking and packaging tasks, making it easier for individuals to focus on speed and accuracy. It also provides extra peace of mind, through extra validations and quality checks during every stage of the fulfilment process.

Demand forecasting

With an efficient WMS in place, this will give you the ability to synchronise your inventory levels alongside your demand forecasting. An advanced WMS with powerful integrations can allow you to simulate different scenarios, helping you to prepare for periods of low or high demand in line with market fluctuations.

Accurate demand forecasting has numerous advantages for your business. This includes ensuring your inventory levels meet the demands of your customers and improving relationships with suppliers by providing them with the information to ensure they are better prepared to meet your needs.

Labour productivity

A WMS improves the efficiency of both your warehouse operations, allowing for smoother inbound and outbound management and processing of your inventory. Through optimised processes, your workforce will be more equipped to manage each stage of the supply chain, giving them better oversight and control over their performance and general tasking.

This can help to improve both the productivity and satisfaction of your workforce, giving them better control of their tasks through every stage of the supply chain.?

Optimised warehouse layout

When handling large amounts of inbound and outbound inventory, a WMS can help you optimise your warehouse layout according to customer demand and storage capabilities.

With a WMS, you’ll have better oversight of your current inventory, helping you to optimise your warehouse space and layout. This can help to anticipate inbound and outbound orders allowing you to plan and organise your space efficiently according to your inventory levels.

Furthermore, an optimised warehouse layout can facilitate the smooth flow of goods by maximising the space needed for storing inventory, improving processes for your workforce, reducing order picking errors and ensuring you meet the delivery times for your customers.

Optimise your supply chain with The Barcode Warehouse

The Barcode Warehouse partners with the leading providers of warehouse management systems to help you optimise and manage your supply chain. Through bespoke recommendations, our expert team can help guide you in choosing the right WMS for your needs. We’ll also consult with you on the appropriate steps for implementation and continue to support you through our?enterprise mobility Managed Services .